client needs to provide “Employees payment details” to be assessed for Housing benefit

I have a client who is being refused Housing benefit because he cannot provide details of his employees over the last 3 years.

He runs a small take away business and has had a high turnover of staff but the local council are refusing to assess the Housing Benefit claim without this info.

client has accounts for this period and has provided them but this is not deemed sufficient.

Any ideas or knowledge on the councils ability to ask for this info and the fact that they are ignoring clients accounts?

“refusing to assess” and evidence “not deemed sufficient” is often used by HB assessors as a euphemism for “we do not believe you”.

I’m afraid it is not uncommon for people with a self employed income based claim.

They have probably made the assumption that if there were genuine employees - then your client would have been obliged by HMRC to keep PAYE and NIC records.

Best way to proceed is to ask HB what exactly would be deemed sufficient evidence.

One point that I think is important with a situation like this is that whilst the LA can refuse to carry out further assessment, they must still give a decision on entitlement.

If the claim is deemed to be ‘incomplete’ because the claimant has not provided sufficient evidence then the LA must make a decision that the claimant is not entitled to HB/CTB. This decision carries appeal rights so that the claimant can go to tribunal and argue that the evidence that was being requested was not reasonably required in order to decide entitlement.

Whether it is reasonable to require the employee records depends on the details of your client’s particular accounts. Remember that all the LA is looking for is a reliable figure for the net income from the business. If the client is claiming an unusually high level of expenses relating to the turnover of staff (or perhaps if they are claiming that they are paying unusually high levels of wages) then it could well be reasonable for the LA to request further information. If on the other hand the turnover of staff, wage levels etc are normal, I can’t see how having a list of employees will assist with deciding entitlement.

Does your client have a tax return for the last tax year?