Income Changes (Introduction)

This section of the Manual provides guidance on how to apply changes to a claimant's income in Function AMEND APPLICATION.

Tax credits are initially calculated using the claimant’s Previous Year ( PY) or Previous Year minus 1 ( PY-1) income.

However when a claimant’s circumstances change, they may request we use their Current Year ( CY) income to avoid an over or underpayment at the end of the year.

When entering or amending CY income, you should make the change as a Change Of Circumstances, however PY income changes should be made as a Correction.

For tax credits to be calculated using either CY or PY income, follow the guidance in Income Changes