Self employed

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  • #31553
    tjq
    Participant

    For “Review” cases, self employed earnings can only be changed if there has been a clear change. A small variation of income will not normally be sufficient to (lawfully) justify supersession.

    Now can anyone tell me how small is a small variation – 10, 20 or 30% increase?
    Do you ever go back and create a small overpayment?

    Also can anyone confirm when Income Tax and NI bands commence from? Is it 01/04/10 or the first Monday in April i.e. 05/10/10, required for working out split tax years

    Many Thanks

    #41090
    Anonymous
    Guest

    [quote:dd8a5d2d70]For “Review” cases, self employed earnings can only be changed if there has been a clear change[/quote:dd8a5d2d70]
    I agree that the basis for a supersession is usually a change in circs, but since all earnings (self-employed or otherwise) are estimated it seems reasonable to revisit those estimates occasionally. See this thread for more discussion: https://hbinfo.org/forum/viewtopic.php?t=8039

    As for going back and creating an overpayment – I don’t think you can make a decision based solely on the percentage increase in net income. You would have to determine what the change was, when it occured, is it likely to be long-lasting or merely a blip in the income cycle. If you happened to review a ice cream vendor’s income immediately following a lengthy heatwave and his accounts showed a 50% increase in trade over the last three months I would not supersede from the start of the summer but would probably obtain his annual accounts and make a new prospective estimation of his income.

    #88237
    tjq
    Participant

    Thanks for the response.
    I just find it odd that we cant go back in most cases and create an overpayment.

    Sorry should read:
    Also can anyone confirm when Income Tax and NI bands commence from? Is it 01/04/10 or the first Monday in April i.e. 05/04/10 required for working out split tax years

    #88238
    Kevin D
    Participant

    Tax / NI bands relate to the TAX year.

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