Client's spouse had serious accident and now on SSP, formerly on 30K+ per annum. Client works 18 hrs for Min Wage. The client phoned IR to report her spouses serious accident and the big drop in income to be told that it made no difference to award as TC's can only be calculated on annual basis. Phoned TC Advisors line to be informed that there was no way they could revise the award on a drop in income in the middle of the claim unless the client could provide a revised annual figure incorporating the new lower income.

The problem is the client+spouse earnings were such they only qualified for the basic family element of £545(1 kid). At the time of his accident he had already earned about 30k for the year. Tax Creds are saying there can only enter an annual figure into their computor but, any new revised annual income figure will still include that 30k alredy earned + SSP now being paid + wifes earnings. That revised annual income figure will still be too high to give anything other than the basic element of £545 even though the reality is the couples earnings have taken a major nosedive since his accident.

Whats the use of notifying a change of income if not taken into account from the date of the change.

For TC read taxing credibilty!

It's back to the point we keep making, TCs are not a benefit. There's no concept of weekly need in the calculation, only annual income whether previous or anticipated.

They will (should) take account of the change in income, if the client tells them, but if the annual income is still too high in that tax year (taking account of any possible disability element?) then that's it.

But for the next tax year...

It is taken into account, if you have a drop in income, the award will be recalculated almost overnight.