Self employed – adverse inference and allowable expense

Currently, there are 0 users and 1 guest visiting this topic.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #46361
    lindsey.aylott
    Participant

    We have a taxi driver who bought a bran new Cab for £39k in March 2010.  (He made a claim as soon as he moved into our area in Sept 10). He originally rented a taxi and then went onto purchase  so we have not allowed the capital repayments as we have classified this as expanding the business.  He pays £656 a month for the repayments on his loan. 

    We have been meeting full hb/ctb based upon his self employed wages of £95.00 a wk since Sept 10.  The claimant, his wife and baby were living in a 1 bed property.  He moved to a 3 bed property and now has a shortfall in rent of £100.00 a month.  Since he moved to a more expensive property with a shortfall in the lha rate that he qualifies for, we assumed his s/e income had taken a turn for the better.   We used an adverse inference that he was earning £198.67 a week and is still entiled to benefit. We created overpayments back to the date he moved since it was a significant change in earnings.  We did ask him for his day to day living expenditure but this has not been supplied to date but we do have bank statments which shows some expenditure. 

    He has appealed our decision.  What do you think our chances are of taking to this to an appeal Tribunal hearing?

    #130816
    peterdelamothe
    Keymaster

    Adverse inference does not allow you to guess at what a person’s latest situation is. It might have been reasonable for you to have refused the claim if you had requested more information and nothing had been supplied but the fact that someone moves? Perhaps the baby had become ill and he needed to move to better accommodation. Perhaps he has borrowed money on the cab and / or on future earnings and is now deep in debt? There are proper procedures that can be applied to deal with this type of issue but this is not the way in my opinion.

Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.