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HMRC internal manual

Tax Credits Manual

HM Revenue & Customs
, see all updates

How to annualise income

Version 1.0

Changes to previous version - new guidance.

Step 1

On the ‘Function Menu’

  • select ‘Application’ from the options available. You’ll be taken to the ‘Key Entry Data’ screen
  • enter the customer’s NINO
  • select ‘OK’. You’ll be taken to the ‘Application Summary’ screen
  • select ‘Continue’ until you get to the ‘Work Details’ screen
  • note the date the job started for the relevant customer
  • identify the income frequency from the Annual Declaration
  • count the number of weeks, fortnights, four-week periods, or months, as appropriate from the job start date up to and including the 5 April of the relevant tax year
  • multiply the income by the relevant number of frequencies
  • enter the figure on the tax credits computer as an ‘Estimate’.