We are getting one or two clients who have a reasonable idea of current year income, but no idea about the previous year. On the basis of current year income they are entitled to maximum TC. If this is so, is there any need to try to find out what the previous year income was? We think not, but are a bit wobbly.
The rationale is that the previous years taxable income is only used if it is slightly less than the current year. Whilst its true that not all the TC computation components went up by the same amount for inflation, we reckon that in most cases a calculation based on the current year will be right, again assuming that the claimant comes out entitled to the maximum.
This still leaves the problem of the IR not having full data, but is this a shortcut?
|