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TOPIC: One off capital payment - IS problem

One off capital payment - IS problem 8 years 11 months ago #28946

Hi

Anyone got any suggestions?

I'm supporting a client on Income Support. He has recently received payment for a piece of art he produced for exhibit. IS advised us in April that this sum (£4k) could be treated as a one-off capital payment and would not affect his benefits.

However, IS are now insisting he fill out a B16/17 form for self-employment. They say the likely outcome is he will have to repay IS.

As this is contrary to guidance THEY gave me can anyone suggest a useful bit of case law? Should I just head to a benefits adviser?

any thoughts appreciated

Rob

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Re:One off capital payment - IS problem 8 years 11 months ago #28961

  • ellie12022
I have checked with my OH who works for the DWP. He says unless your friend is registered as self employed the original advice stands. Anything under £16k can be treated as a one off, like selling your washing machine for example.

Hope this helps.

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Re:One off capital payment - IS problem 8 years 11 months ago #28964

Hi,

Definitely get advice from a welfare rights worker as it's a potentially very serious situation which could affect not just income support but other means-tested benefits too.

The alleged overpayment could reach back well before the actual receipt of money, to the point at which works first began to be produced which were subsequently offered for sale.

There is also the possibility of allegations of fraud if your client is deemed to have been producing works of art for the purpose of remuneration but has been claiming benefits as incapable of work.

I'm not suggesting that is what your client has been doing, but good advice is definitely needed, preferably before any further evidence is provided to the DWP.

Good luck,

Steve

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Nothing on this board constitutes legal advice - always consult a professional about specific problems

Re:One off capital payment - IS problem 8 years 11 months ago #29205

Thanks steve - I'll do this

Ellie - thanks, the advice I got originally from DWP was very similar to yours!!

All the best

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