WTC o/p written off by HMRC, what do we do…?

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  • #20022
    lhunter
    Participant

    I could do with some help on this one…

    I have a case whereby the clt had overpaid WTC (~£2k), apparently the HMRC have written off this o/p as the clt’s wife had died around the time the o/p occurred and they have looked upon this case compaasionately (I have not any proof that this has happened – can endeavour to get if it will make any difference).

    We were not aware at the time that WTC was in pymt, it came to light by HBMS, and a HB o/p of ~£1k occurred. Clt is appealing.

    I understand that when calculating a HB / CTB claim we use the amt of WTC that was paid (which is what we have done), even if it is subsequently recovered by HMRC, I ASSUME that we treat it the same way if HMRC decide not to recover (as the clt effectively kept the money they were not entitled to and are therefore better off)?

    My only concern is that the Reg’s and guidance manual both say

    “WTC and CTC payments received are to be included in the assessment of the clamant’s entitlement to those benefits, even if they are overpaid [u:06bd3fc0d6]and to be recovered[/u:06bd3fc0d6]”

    So it makes me think there is something else we should do if they are not to be recovered? But surely not as the clt would be better off two times over in that case….

    Has anybody come across this situation before, and how did you deal wih it?

    Thanks

    #1790
    markp
    Participant

    Would you consider the OP to be departmental error? (clutching at straws………………)

    Do I know what I'm doing? The jury's out on that........................

    #1791
    lhunter
    Participant

    The HB o/p is not LA error, so is definately recoverable (clt also has an ongoing history of o/p’s due to failure to tell us about changes in income, quite often WTC, so I am reluctant to write this off on compassionate grounds – mean aren’t I?!)

    I have considered that it may be HMRC error, but when you think about it, he had the money, is not having it to pay it back to them, so it is almost like normal WTC entitlement, so should his HB not be affected by it? 😕

    #1792
    markp
    Participant

    Not necessarily (mean, I mean!).

    If he has had WTC which he was not entitled to and HMRC are admitting it was their mistake (the fact that they aren’t recovering can be an indication of this) then it was income AND he received it sio an OP is recoverable.

    However, were he to appeal, I can see a Tribunal chair sympathising with HMRC’s sympathetic view and giving you a hard time at tribunal, although I believe that a Tribunal Judge cannot enter into a matter of exercise of discretion.

    Do I know what I'm doing? The jury's out on that........................

    #1793
    lhunter
    Participant

    Yes, that is where I am at…he has appealed, and I just wanted to check that before I take it to Tribunal that we had treated the income correctly.

    You are probably right about the chair being sympathetic, but I do not see they have any jurisdiction on this matter, it is also way out of time (15 months…that’s not to say they won’t hear it…the word “law”, “unto” and “themselves” spring to mind…)

    Thanks for your help 🙂

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