Self-employed income ...

Hi all and hopefully just a quickie ?

Have a cl who is self-employed and in 10/11 tax year his earnings are much higher than they are now in the current tax year.
He claims HB / CTB with his wife and I am wondering if we can ask HB/ CTB dept to review their award because his earnings are much lower now ?
CPAG page 884 appears to state that a persons claim for HB / CTB is calculated on a persons self-employed income in the previous tax year ...
Any thoughts etc, thank you ...

I used to present courses for self-employed earners so had good reason to look into this aspect and came to the following conclusion.

Contrary to popular belief, the provisions for the level of income to be taken into account, as well as when changes of circs take effect, are no different for self-employed earnings compared to most other types of income.

Despite many such references in guides and commentaries, there is no legal basis for only being able to take into account earnings based on the previous year’s level.  In short, if there has been a change in circs, distinguished from a cyclical or seasonal fluctuation, the awards of HB/CTB should be superseded from the date of that change in the way most other forms of income must be.  If the LA refuses, simply appeal on the grounds there has been a change in circs that falls within HBR 79 and there is no bar to reassessing.

Of course, this cuts both ways.  If a clmt has a high income this year, my view is that you don’t take last year’s income into account if it was lower - this is also contrary to a belief that is way too widespread.  My views are based on the legislation - not any personal hobby horse nor with any reference to the obvious inherent practicalities such as potential retrospective overpayments arising and, in effect, catching claimants out. 

In CH/0329/2003, Cmmr Powell did suggest that a STARTING point would be to look at the last year’s figures.  However, this is absolutely not authority for using figures that bear no relation to new circumstances.

Thank you Kevin D !
Much appreciated and have a good evening ...