Which years threshold and cap?

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  • #33844
    Simo
    Participant

    If a payment is made in 2009/10 but part of it is in respect of 2008/9 which thresholds and caps should be used for the earlier period?

    The system seems to be using those relating to the year in which payment was made, but the auditor is querying this.

    I have noted in S7/2009 that states use rules (and thresholds?) in operation when payment was made.

    The guidance manual and other circulars I have looked at don’t mention this.

    #94113
    Anonymous
    Guest

    The subsidy rules are always those that are relevant to the year in which the benefit was paid and where payments extend over 2 years subsidy should be claimed and assessed on the rules that were relevant in the later year. The circular is particularly difficult to understand but I think that the intention is that if there is an [i:8436d25367]underpayment[/i:8436d25367] going back into last year then it gets full subsidy. I cannot understand the logic of this so I am not surprised that the auditor is confused. (Northgate are confused as well because the expenditure for these cells tends to go “missing” on the subsidy module.)

    #94114
    Simo
    Participant

    I acknowledge that refers to the ‘rules’ but do you think that also includes the thresholds though?

    If process a claim now which goes back to feb10, then S7/2009 states should use new LHA based method, however if we pay in June 09 which is for a period Feb to March 09 which thresholds should be used in the calc those for 09/10 or 08/09?

    Obviously the auditor will want me to show him the answer!

    #94115
    Anonymous
    Guest

    Pass!

    #94116
    Simo
    Participant

    Think will have to e-mail DWP then. i did and below is the reply;

    [i:5e69a12d96]The thresholds and caps that should be used are those in force at the time of the payment.

    Therefore if a payment is made in 09/10, the 09/10 thresholds and caps should be used even if part, or all, of the period to which the payment relates is in 08/09.
    [/i:5e69a12d96]

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