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UC, Work iPad and income
Hello,
Client started work on 03 Dec.
Employer reported earnings which included £150 deducted from his wages for a work iPad.
This £150 deduction has been taken into account as wages by HMRC/UC.
We provided bank statements showing client earned £441 as wages in the relevant assessment period.
UC insists he earned £591. He has lost £94 due to earnings deduction.
I’m struggling to wrap my head around this and at a complete loss where to begin.
Advice/suggestions?
An accountant could sort this one out because it requires familiarity with IETPA*. But as a layperson looking at it without much prior knowledge my starting point would be:
- Reg 55(3) of the UC Regs says that expenses allowable under Chapter 2 of Part 5 of IETPA are deducted from earnings for UC purposes
- in the IETPA itself, s333(1)(b) [which is in the right Chapter of the right Part] covers an expense which “is paid on the person’s behalf by someone else and is included in the earnings.” Seems to apply here
*Income Tax (Earnings and Pensions) Act 2003
You might find the link below useful.
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32400
Thank you both! 😊