Income contributing to tariff income from capital!!

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  • #23028

    Hi All,
    I’ve got a gentleman who is aggrieved that we are taking his income (an occupational pension) into account “twice”. Once as income itself, and once as contributing to the level of capital he holds (as it is paid to him by BACS) which is generating a tariff income.
    I could just tell the gentleman that ‘that’s the way it is’, but I was wondering if anyone could think of a nice way to explain it to him, as he’s obviously quite cross about the whole thing.

    Any suggestions greatly appreciated.

    Neil Adamson

    In the past I have explained it in the following terms.

    In the week/month it is received the pension is taken as income (ensure the capital amount you are taking doesn’t include his most recent payment if appropriate). But once a new payment has been received, the previous one ceases to be income and moves into the capital category.

    After all, savings are mostly made up of income that you haven’t spent!

    I know it’s a bit simplistic but it sufficed in my claim. Sure somebody will come up with a better version!

    Kevin D

    Completely agree with Neil.

    See [b:9ddb41d561]R(IS) 03/93 (aka CIS/0654/1991)[/b:9ddb41d561] for authority.

    It’s on the Comm’s site:



    Thank you both for your most helpful input.

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