Cost of living payment

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  • #281349
    Rosalind Montgomery
    Participant

    I have a HB claim whereby the claimant’s employer has paid a one off gifted ‘cost of living payment’ (shown on the wage slip ) that has resulted in HB being nil entitled. Can this income be disregarded as employer is a charity organisation?

    #281387
    pbirks
    Participant

    was its taken into account for tax and NI purposes?

    #281405
    npatel
    Participant

    if the payment is taxable then should we take it into account as part of income? if its not taxable should we disregard it? we have alot coming through too, where employer is giving payments out and stating they are cost of living payments.

    Miss N Patel

    #281406
    pbirks
    Participant

    if they have tax and ni deducxted, then its hard to see how they can be anything other than earnings.

    Obviously, they dont form part og=f the future average – but has there been a change in circs which warrants a re-assessment? They don’t form part of the “usual” earnings ?
    So you could possible aregue that theres no need to retrospectively assess, and they dont form part of the ongoing average….

    We disregarded some similar payments when customers got a “thankyou” from employers from Covid – problem is these 1 off payments are appearing almost yearly,,,, which makes it much hardr to say its a one off and exceptional

    #281407
    Mike Hughes
    Participant

    “Gifted” or loaned up front via a scheme the employee opts into as an advance of earnings or imminent pay rises? Few employers are gifting anything?

    #281426
    EVS27
    Participant

    could this be looked at as a payment in kind? or am I barking up the wrong tree?

    #281428
    pbirks
    Participant

    I thought A payment in kind is where you get something other than cash for work done. in this case, they hasve got an additional payment. if itys had tax and NI deducted, then its earnings, its just what period to apportion it/include it over, if at all.

    #281429
    Mike Hughes
    Participant

    I don’t see that tax would be determinative at all. Tax is deducted off many things.

    NI is only deducted from earnings or self-employed earnings.

    #281437
    John Boxall
    Participant

    Well,

    Firstly its a payment made in connection with someone’s employment

    The next question is how to treat it, has there been a ‘change of circumstances’ or is this going to affect the estimate of likely future earnings?

    There were some issues over one off bonus payments Tesco made a few years ago after they had reorganisation after a fall in profits so it might be worth looking at those threads

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

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