A friend just awarded help from a Benevolent Association

poppasmurf_bewdley

A friend of mine has just been awarded help from a Benevolent Association associated with her previous employment which is a registered charity.

She is retired, receives only state pension, and received Housing Benefit and CT Benefit. She currently has to pay the equivalent of one week's pension towards her rent and CT.

The Benevolent Association will be paying her a monthly allowance, her phone and broadband costs (not calls), a heating allowance, a holiday allowance and a christmas donation.

Does she have to notify the council and HMRC about these payments?

Thanks for any help.

seven-day-weekend

I would imagine the monthly income will affect her Housing and CT benefits so she will have to inform them.

She also needs to inform HMRC as the income, coupled with her State Pension, may take her over her Personal Allowance in which case she may have tax to pay. There may also, afaik, be an issue of Payments in Kind. I'm no tax expert, but I would not take the risk of not informing them.

Housing_Benefit_Officer

Charitable income is disregarded in full as income for Housing Benefit purposes.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/236962/hbgm-bw2-assessment-of-income.pdf

W.612 onwards...

Disregards

W2.614 Any charitable or voluntary payment which is made or due to be made at regular intervals should be fully disregarded, see Annex B, paragraph 35

poppasmurf_bewdley

Housing_Benefit_Officer wrote: »

Charitable income is disregarded in full as income for Housing Benefit purposes.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/236962/hbgm-bw2-assessment-of-income.pdf

W.612 onwards...

Disregards

W2.614 Any charitable or voluntary payment which is made or due to be made at regular intervals should be fully disregarded, see Annex B, paragraph 35

Thank You for the information. That will be invaluable to her and set her mind at ease.

missapril75

It should still be reported though, if only to avoid suspension of benefit and embarrassing questions should the income "become known" later, as often happens, without the source and purpose being known.

clearingout

I used to work for a large benevolent organisation about 12 years ago. I am aware there have been changes to the system generally but back then, £20 a week was disregarded and payments made directly for items (TV, computer etc.) were also disregarded. As a condition of continuing to give the money, we asked for an annual signing of some paperwork which was then sent to the DWP who would then confirm to us what benefits the person was in receipt of. This acted as a means by which we could confirm the person was still eligible for support under our own terms and conditions, if that makes sense.

She should declare it to the relevant authorities but make it clear who is giving it and for what purposes, particularly if the heating grant is being paid direct to the provider. This will avoid an y problems in the future. I hope it makes a difference to your friend's life - I used to love talking to my recipients!

dippy3103

Wise advice from Miss April. Report the income to be on the safe side even though it won't make any odds. Just saves potentially having to explain it at a later date