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HMRC internal manual

Claimant Compliance Manual

Particular aspects: estimated income - general

Customers 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 customer 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 customer asks us to recalculate their award using a current year estimate. This would only deter customers 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.