Where the causes of a REDUCTION in income are new and have not been observed in previous fiscal periods, such as the loss of a major contract or a temporary interruption of activities for health reasons, net income must be assessed (or reassessed in the case of someone already receiving benefits) in light of this significant drop in income. A difference of 10% or more from the preceding fiscal period is considered significant.
Net income may also fluctuate positively, to a recipient's advantage. In such situations, a difference of 10% or more is considered significant and triggers a recalculation of the resources/needs deficit during the fiscal period. This applies where the increase in income is due to an improvement in business that appears to be lasting and was not observed during previous fiscal periods.
The net income used as a basis for calculating the deficit is that established in the most recent reassessment of the file, which is adjusted upward or downward in accordance with the percentage of the recorded change in income. The assistance is readjusted for the remainder of the current fiscal period.
It is important to accurately IDENTIFY the CAUSES of a reduction in income. One of the characteristics of self-employment is irregularity of income and uncertainty as to when money will be coming in. There are normal reasons that may explain a temporary interruption of activities. For example, the holiday period in the construction industry may affect a self-employment activity. Internal changes by a company, such as changes in its location, operating method or basic activity, represent potential risks that self-employed workers must expect when working for themselves.