SMI - NDD & income

I think your analysis is correct (see CIS/2631/2008)

That said watch out for the deductions applied to self employed non dependants.  Some LA’s have a habit of taking gross turnover as “income”.  In my view thats wrong and the profit before notional tax and NI is the corrrect figure to use. [ see R(FIS)4/85 and R(FIS)2/88(T) ]

Hi and thanks,

This case is to do with NDDs to SMI which to be honest has been totally messed up by DWP.

The client’s son has a very static weekly income: earnings (21.5 hours week - £146.77), WTC (£80.29) and DLA (£ignored) but over a period of 18 months the NDD’s have varied from £26.75, to £67.25, to £55.20 and now back to £26.75.

The £26.75 rate seems to be based solely on earned income, not counting WTC - which is why I questioned my understanding of the regs.

The other NDDs they have applied make no sense at all… they relate to ??? Even the sons total income including DLA only comes to £295.91 per week and the NDDs used by the DWP are for income in excess of £300.

So in essence my client is being overpaid now but was being underpaid previously… why is nothing ever simple anymore!