Claimants may ask for their award to be recalculated on the
basis of their estimated figure of income for the current year if
they consider their income has dropped. We do not have to amend the
award if we do not consider it appropriate. We can continue to base
the award on the previous year’s income, or we can substitute
an estimated figure of our own.
A claimant may also contact us to tell us that their current
income has increased. In these circumstances follow the guidance at
CCM6890.
It would not be appropriate to make detailed checks on the
amount every time the claimant asks us to recalculate their award
using a current year estimate. This would only deter claimants from
claiming the additional amounts of tax credits to which they may be
entitled during the year. But there may be occasions when the CCRO
has identified an estimate as being so out of step that they
consider it merits closer scrutiny.
The amount of the estimated income is likely to be only one
of several risks the CCRO has identified. It may be closely linked
with the other risks, for example, it may be responsible for making
the childcare costs seem high, or for casting doubts on the number
of hours worked or the nature of the work.
