Clause 7 - Income test
Tax Credits Bill
9:30 am
Mr Howard Flight (Arundel and South Downs, Conservative)
I thank the Minister for his clear explanation. He says that last year's income may be used as the basis, provided that this year's income is only modestly different, but last year's income is income as defined under subsection (3), so it includes that distortion. No comparison is made with actual cash income; rather, last year's income is income as defined for the purposes of the clause. Might there not be a compounding of the variance from this year's income?