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Loss of earnings calculation

Loss of earnings calculation

I have been asked by a solicitor to calculate my client’s loss of earnings (historic and future) following an accident while at work.  My client works in the construction industry, basically a self employed subby and whilst working on a building site he suffered a severe fracture of his ankle and foot.  This happened in July 2009 apart from 3 weeks he has been unable to work since.

Further complications are that other clients I have who do similar types of work can earn between £300 and £1,000 per week depending on which contractor they work for, geographical location of the work and many hours they put in. 

Given the volatile nature of the construction industry at present I do not want to overcook my calculations, neither do I want to sell my client sort.

My question is how do I go about preparing such a calculation?  This is something I have never been asked to do before. 



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16th Feb 2011 12:19

Review his books and records

You take his historic accounts and extrapolate. I used to do a lot of these - you are quite stumped if there are no records but if he is in CIS you have income. Don't forget his expenses.

Virtual tax support for accountants: www.rossmartin.co.uk

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