I have a client who received an overpayment from her employer of a period of a few months. They calculated her claim on the basis that this was her correct income. As a consequence of this they stated she earned too much to qualify. Her employer now wants the £2500 they overpaid her and she does not have the money. She has appealed the HB decision on the grounds her income was incorrect at the time of the HB calculation( although she did received the money but was not entitled to it). She appealed the decision before seeking advice from us. She does not have the money and agrees she has to pay the money back to her employer. However can anyone suggest where I can find the HB legislation in regards to being overpaid wages. as to whether this money would be regarded as Capital or Income. Help please!!!

Not certain that events that happened after the HB decision was made (I.E the employer deciding that your client was overpaid wages) can be taken in to account in the tribunal.

I think that your client will need to make a new claim for benefit and ask for it to be backdated.

Jeff

Neither income nor capital is defined in the legislation, but I think that following the Leeves case (reported as R(IS)5/99), the wages incorrectly paid are considered to be income until the time that a demand for repayment is made.

If the demand was not issued until after the claim for HB was decided, then I am afraid Jeff is correct in saying that a new claim wil be needed along with the backdating request.

I dont think there should be much difficulty regarding backdating, but there will be no entitlemet to HB before the date of the demand for repayment.