Hi, I hope someone can offer some advice as I am not really too sure about this one.

My client was claiming WTC as a single prson but became sick in October 2007. She did not do any work during this time, continued to claim WTC, and did not make a claim for incapacity related benefits. She came to see us as she generated O/P when she claimed I.S/ICB in February 2008.

We tired to challenge this by saying out client retained entitlement to WTC throughout ther period, as she was classed for WTC purposes as a self employed claimant, I referred to WTC (Entitlment and Maximum Rate Regulations 2002) 6 (1)

'A person who is self employed is treated as engaged in qualifying remunerative work for the requisite number of hours during any period for which she would have been entitled to SSP but for the fact that the work she perfomred in the week immediately before the period began, although done ofor payment or in expectation of payment, was not performed under a contract of service'

As period of SSP 28 weeks I tried to argue that an overpayment had not in fact occured.

HMRC have refused this and state the money is recoverable in full. I recall somewhere that you can only retain entitlement to WTC if you actually inform HMRC that you are sick?