Would be grateful for any help with this. A chap is working & getting tax credits. He then falls ill in July and goes on SSP. When reassessing his annual income what assumptions will the revenue make? If they calculate his annual income based on earnings up to falling sick and then SSP for 28 weeks what do they do about the remaining months of the year? Do they treat him as if he would continue to get SSP for the remainder of the year?

The IR should simply add up the wages, the SSP ,and any other taxable income for the year.

There seems to be a problem with some people on TCs who are long term sick. WTC entitlement normally stops when SSP stops (or when lower short term IB stops etc), but if the claimant does not tell the IR it has stopped, they seem to carry on paying. You would think that they would know when SSP stops (Hinchy issue?). The claim form notes are unclear on this matter (see page 22 about sickness, and in particular page 43 about changes you should report - no reference to this important change!). The IR publicity given to employers tells them that TCs should stop when SSP stops, but this would not stop the IR from recovering an overpayment, should one arise.

Steve