Income or reduced liability

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  • #38409
    K Sylvester
    Participant

    Hi, have a case were the gentleman is a director of a company. He states on his claim that the rent is £2200 pcm but he is liable for only £1200.00 and the company meets the other £1000.00. The TA states he is liable for full £2200! he says the company are using part of the building for storage and office space hence the £1000.00 contribution. Do I treat him as liable for the £2200 and count the £1000 as income or ignore the £1000 and use a reduced liability of £1200 I’m siding on income but any input warmly welcomed!

    #108218
    Kevin D
    Participant

    My initial thoughts, most definitely from the hip, are that the liability is £2,200.00 BUT the payment of £1,000 counts as income (for services provided). The evidence appears to support this approach and, if the tenancy agreement is not ambiguous, it isn’t for a LA to find a way of making it mean something else.

    Out of curiosity, what is the LHA level? If it’s lower than £1,200pcm, there won’t be any practical difference to the level of HB (or is the 13-week protection at issue?).

    #108228
    K Sylvester
    Participant

    Thanks Kevin,

    I went with income! the LHA is £895.00 so huge shortfall but this particular gentleman seems to like the finer things in life! :crown:

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