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HMRC told client income tax rebate was not counted as income for UC
I thought tax rebate was counted as earnings if the rebate was from a tax year where client was in paid work -
“H3022 An actual repayment to the claimant of
1. income tax or
2. NI contributions
by HMRC in respect of a tax year in which a person was in paid work is treated as employed earnings1
.
Where the paid work was from carrying on a trade, profession or vocation then the repayment is treated
as S/E earnings2
(see ADM H4131).
Note 1: Repayments of income tax may include tax relating to other sources such as unearned income.
As long as the claimant was in paid work in the tax year the repayment relates to, then the whole
repayment is treated as earnings.”
However an adviser at HMRC told client it was not counted as earnings and would not affect his UC award. Is there something I have overlooked that could make this true?
Many thanks
The HMRC adviser is probably thinking about what counts as income for tax purposes, which is very different from the point at issue here.
Cheers James, sounds possible. Just had me doubting myself and wanted to check before confirming to client!
I doubt that someone at HMRC has sufficient knowledge to offer advice on the workings of UC and, assuming that it isn’t the client who misunderstood, shouldn’t have offered any advice on the subject.
I doubt that someone at HMRC has sufficient knowledge to offer advice on the workings of UC and, assuming that it isn’t the client who misunderstood, shouldn’t have offered any advice on the subject.
Exactly my thoughts.