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Forum Home  →  Discussion  →  Work capability issues and ESA  →  Thread

ESA reduced by tax credit that was overpaid.

benefitsadviser
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Sunderland West Advice Project

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I have a client who claimed SSP + Working tax credit.

SSP ran out and she claimed ESA a year ago, but didnt tell the revenue, so continued to get £60 a week WTC

Her ESA was reduced by 60 quid as WTC was assessable income.

Client was let go by her employer, so all working tax credits are recoverable.

Tax credits have now stopped and i have a feeling they will recover.

So : If the tax creds were paid in error and are recovered that means retrospectively (i think) the 60 quid should not now be deemed as being paid, therefore meaning she has been undepaid ESA

I know about offsetting but ive never come across offsetting tax creds against an IR benefit if an overpayment occurred.

Any mileage in asking for ESA to pay arrears in this case?

I know its not official error as the client didnt do her bit, im just wondering if there is any caselaw to support this (straws, clutching at….)

Thanks

Edmund Shepherd
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Tenancy Income, Royal Borough of Greenwich, London

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Does CPAG p280 help? For HB, the amount paid at the time is the amount you need. For IS etc., “the intention seems to be to take into account the actual award paid - e.g. after any overpayment has been deducted”. CIS/1064/2004 may help.

Daphne
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This thread might be useful in arguing that the tax credits were not overpaid - http://www.rightsnet.org.uk/forums/viewthread/7180/

CIS/1064/2004 summary available here - http://www.rightsnet.org.uk/welfare-rights/caselaw/item/Amount-of-child-tax-credit-to-be-taken-into-account-in-calculating-the-clai - and decision here - http://www.osscsc.gov.uk/aspx/view.aspx?id=1792

[ Edited: 30 Sep 2015 at 10:34 am by Daphne ]
benefitsadviser
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Thanks everyone.

Her boss let her go in Apri/May so not actually employed since then, and she never even filled in a Working tax credit renewal form this year. She has told the revenue absolutely nothing regarding ANY change of circs.

Any tax creds paid since april 2015 should be recoverable at least unfortunately.

She got SSP for 28 weeks starting March 2014 and has been on ESA for about a year afterward, and her tax credits only stopped a couple of weeks ago.

I know when on SSP Tax creds are claimable but not a year after the ssp stopped.

Ho hum. I will contact ESA if TC try to recover