Delcared income to Tax Credits

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  • #20042
    Anonymous
    Guest

    A claimant has declared his self employed income figure as £50.00 a week to Tax Credits. He has declared his self employed figure to us as nil.

    We believe it is reasonable to mirror the figure declared to Tax Credits as the self employed income figure for HB/CTB. Does anyone know of case law to support this?

    Thanks

    #1832
    Andy Thurman
    Keymaster

    I don’t think you can just do this – the periods in question may be different for one thing (or has the income dropped but not been reported to HMRC?) – but I do think you have legitimacy in asking further questions on this.

    You don’t state in your post what proof has been supplied to you?

    #1833
    Anonymous
    Guest

    He was in receipt of JSA for a number of years and has now commenced self employment as an artist working 40 hours a week . We have requested details of income and expenditure but none has been supplied to date.

    I think we are allowed to assume a reasonable notional income and we have based our decision on the annual income declared to Tax Credits.

    #1834
    Andy Thurman
    Keymaster

    [quote:15ba6aae43]We have requested details of income and expenditure but none has been supplied to date[/quote:15ba6aae43]

    If you’ve given enough time for this then I’d assume an income in excess of entitlement.

    #1835
    Kay_Tade
    Participant

    I agree with Andy, you want an adverse inference on income that negates entitlement in this case. The figure used by HMRC could have been altered, or not, for that matter, by them for various reasons and I’m not sure I would use it without having any other form of information to rely on.

    #1836
    Andy Thurman
    Keymaster

    I’d just add that, if this is a new business (didn’t really focus on that bit!), the claimant may be struggling to provide any figures.

    I’d try to speak to him, preferably face to face, to get an idea of what is going on – what are his projected earnings and expenses? It may be valid in the short term to use nil income, then review based on the 1st 3 months actual trading.

    If your claimant won’t ‘play ball’ however, I would use adverse inference rather than the tax credit figure.

    #1837
    Anonymous
    Guest

    Thank you for your advice.

    Adverse inference has been applied. We have just based the adverse inference figure on what has been declared to TC’s. I have prepared a submission to the Tribunal Service, however, I think I will see him face to face as suggested before we go down that route.

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