If, during the course of the examination, the claimant(s) tells
you that their current year’s income is likely to be less
than that on which their award is based, you should ask them for
some evidence to support their statement. You should remind the
claimant(s) that they will have to confirm the estimated figure or
state the correct figure, after the end of the year, and that an
underestimate could lead to an overpayment of tax credits. Remember
that you will not be seeking to test their statement in depth, so
you should not carry out an extensive exercise to arrive at a
figure of current years income.
Note in particular that you should not attempt to validate
the figure the claimant suggests by constructing means tests,
capital statements, etc. If the claimant(s) is in employment, you
may want to see payslips for, say, the last 4 weeks. If the
claimant(s) is self-employed, you should explore their reasons for
believing that their current year’s income has fallen, is
their view based on a calculation of some kind, for example a half
yearly account? Or is it based on nothing more substantial than a
feeling?
In many cases, the evidence is likely to fall somewhere between these two extremes. You should weigh up whatever evidence is presented to decide whether you consider it appropriate to amend the award on the basis of the estimated current year’s income figure. You should normally accept the claimant’s estimate, unless you consider that it is seriously inaccurate and will lead to a large debt being built up. If you do not take the revised, estimated income into account when you amend the award, the claimant(s) will be able to pursue the matter, if appropriate, by appealing against your decision.
