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SDP Official error arrears of over £5000, disregard of capital query
- Jen
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4 days 23 hours ago #302916 by Jen
SDP Official error arrears of over £5000, disregard of capital query was created by Jen
Hello
I recently was contacted by the DWP to inform me that I should have been in receipt of SDP for the last 12 years. To my shock I have been told that the amount owed to me is £40K. When I was called back to conform this, the lady said I didn't need to sign off as it was an 'official error' and disregarded for the length of my claim.
I've since received a letter which is worded in a very vague manner 'this is classed as Official arrears of 5K or more and MAY be disregarded as capital under certain conditions' Rather than being happy about this windfall I am severely anxious. I am currently on ESA/support group, and PIP and at some point will be migrated to UC. I've informed Council Tax and don't receive Housing benefit.
I've attempted to get advice from the DWP but the person I spoke to was clueless.
How long is the disregard and what happens when I am migrated to UC?
Is this £40K paid in as taxable income for 1 year or spead over the 12 years?
What can I do with the £ without being penalised eg pay into an ISA, or pension?
Many thanks Jen
I recently was contacted by the DWP to inform me that I should have been in receipt of SDP for the last 12 years. To my shock I have been told that the amount owed to me is £40K. When I was called back to conform this, the lady said I didn't need to sign off as it was an 'official error' and disregarded for the length of my claim.
I've since received a letter which is worded in a very vague manner 'this is classed as Official arrears of 5K or more and MAY be disregarded as capital under certain conditions' Rather than being happy about this windfall I am severely anxious. I am currently on ESA/support group, and PIP and at some point will be migrated to UC. I've informed Council Tax and don't receive Housing benefit.
I've attempted to get advice from the DWP but the person I spoke to was clueless.
How long is the disregard and what happens when I am migrated to UC?
Is this £40K paid in as taxable income for 1 year or spead over the 12 years?
What can I do with the £ without being penalised eg pay into an ISA, or pension?
Many thanks Jen
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- David
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4 days 20 hours ago #302930 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic SDP Official error arrears of over £5000, disregard of capital query
Hi Jen
I cannot advise on Income Tax.
Your £40000 will be disregarded indefinitely as long as you keep your claim open and the same applies when you are Migrated to UC. The disregard applies to Housing Benefit. I cannot speak about Council Tax as each Council is allowed to create its own provisions.
You are allowed to invest the backpayment as you like eg ISA, Shares, premium bonds etc
Let me know how you get on.
David
I cannot advise on Income Tax.
Your £40000 will be disregarded indefinitely as long as you keep your claim open and the same applies when you are Migrated to UC. The disregard applies to Housing Benefit. I cannot speak about Council Tax as each Council is allowed to create its own provisions.
You are allowed to invest the backpayment as you like eg ISA, Shares, premium bonds etc
Let me know how you get on.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- Jen
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4 days 20 hours ago #302934 by Jen
Replied by Jen on topic SDP Official error arrears of over £5000, disregard of capital query
Dear David,
Many thanks for your reply. I've informed the Council Tax as I receive the discount and am waiting for their reply.
I'm confused by their typically vague wording of 'may be disregarded' ? I have genetic disorders so am unlikely to improve healthwise but don't want to get in trouble. On this thread on RightsNet www.rightsnet.org.uk/forums/viewthread/18143/ it seems to say the same as you (See para.11 of Schedule 8 (Capital disregards) of the ESA Regs 2008) Thanks again, I feel horribly anxious about doing the 'wrong' thing here. Best wishes Jen
Many thanks for your reply. I've informed the Council Tax as I receive the discount and am waiting for their reply.
I'm confused by their typically vague wording of 'may be disregarded' ? I have genetic disorders so am unlikely to improve healthwise but don't want to get in trouble. On this thread on RightsNet www.rightsnet.org.uk/forums/viewthread/18143/ it seems to say the same as you (See para.11 of Schedule 8 (Capital disregards) of the ESA Regs 2008) Thanks again, I feel horribly anxious about doing the 'wrong' thing here. Best wishes Jen
The following user(s) said Thank You: David
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