LA attempting to recover Test and Trace Support Payment

ElwoodBlues

Myself and my children had covid in January this year. Kids had it first, then a week later I came down with it and continued to test positive for 12 days. So effectively I was isolating for best part of 3 weeks in total! I took 2 weeks covid related SSP from work, and claimed the Test and trace support payment from the LA. At the time, they asked me to confirm I had suffered a loss of earnings, which I did (SSP is obviously less than regular salary), and they paid me the £500. I know that was greater than my loss of earnings, but as far as I was aware it was a flat rate £500 payment?

Now the LA has contacted me saying they believe 'the payment was made in error' and is recoverable from me, citing HMRC records as showing no loss of earning. Been told to await an invoice sent out separately. And if I don't agree I can contact them to plead my case and provide supporting evidence.

I don't know what personal information the LA receives from HMRC about me, or how they determine if I have or haven't suffered a loss of income?  

sheramber

Are you sure it is a genuine letter from the LA?

ElwoodBlues

sheramber said:

Are you sure it is a genuine letter from the LA?

Yes, I believe so. It's an email from the @LA.gov.uk email address. Same person that contacted me when I originally made the claim. And the email contains a reply email address (also @.LA.gov.uk) where I can write to state my case if I don't agree with their decision that it was made 'in error'. No explanation of why they think it was in error, or what information they've received from HMRC to give them that impression. Whole thing feels a bit like a fishing trip, but I'm pretty certain it's legit, and came from the local authority.

Andy_L

Have they just got the dates wrong? ie they're looking at a different month to the one you were sick

sheramber

They probably have details of the monthly income submitted to HMRC.

As the payment was for more than you lost in wages that may be the  problem.

Are you sure you met the eligible criteria of being in receipt of a relevant benefit or on a low wage. 

ElwoodBlues

sheramber said:

They probably have details of the monthly income submitted to HMRC.

As the payment was for more than you lost in wages that may be the  problem.

Are you sure you met the eligible criteria of being in receipt of a relevant benefit or on a low wage. 

I believe so - I received 2 weeks of SSP in lieu of wages for time when I was unable to work due to myself and my kids having covid. My PAYE record for January should clearly show this.

porkisnotmeat

ElwoodBlues said:

sheramber said:

They probably have details of the monthly income submitted to HMRC.

As the payment was for more than you lost in wages that may be the  problem.

Are you sure you met the eligible criteria of being in receipt of a relevant benefit or on a low wage. 

I believe so - I received 2 weeks of SSP in lieu of wages for time when I was unable to work due to myself and my kids having covid. My PAYE record for January should clearly show this.

Receiving SSP doesn't mean you're on a low wage, it just means you have a bad employer.

As you were not on benefits the criteria are

• you’re on a low income
• you will face financial hardship as a result of self-isolating

So, do all of those really apply?

Be honest.

Dazed_and_C0nfused

ElwoodBlues said:

sheramber said:

They probably have details of the monthly income submitted to HMRC.

As the payment was for more than you lost in wages that may be the  problem.

Are you sure you met the eligible criteria of being in receipt of a relevant benefit or on a low wage. 

I believe so - I received 2 weeks of SSP in lieu of wages for time when I was unable to work due to myself and my kids having covid. My PAYE record for January should clearly show this.

You can see what your employer reported to HMRC on your Personal Tax Account on gov.uk.

onashoestring

For the support payment,the low income eligibility refers to your usual salary not the salary for the month you had to isolate. 

For the support payment each LA set their own requirements for eligibility . Most LA defined low income as someone who was receiving  one of these benefits or payments:

• Universal Credit
• Working Tax Credit
• Income-based Employment and Support Allowance
• Income-based Jobseeker's Allowance
• Income Support
• Housing Benefit
• Pension Credit
• Council Tax Reduction

You need to check the eligibility of your LA to see if you did qualify.

superbigal

Hopefully they don't treat it as a fraudulent application.  As posted above 99% of the time it was related to being on benefits.

ElwoodBlues

Just to update on this - LA accepted a payslip showing my receipt of SSP as valid evidence in my 'appeal' and agreed that I am eligible after all, so I won't have to repay it. They already knew I was on a low income and in receipt of WTC, so don't think that was their reason for trying to claw it back.