Sometimes there may be situations where employers notify HMRC of an employees earnings later than they should have done. If this means that the claimant is worse off as a result there is case law that could be useful.
- an employer failed to notify the UC claimants earnings on time and as a result she was recorded as receiving two monthly salary payments in one Monthly Assessment Period. The DWP eventually accepted that this was caused by a failure of the employer who had delayed reporting her earnings and that the salary payment that had actually been paid in the previous Monthly Assessment Period should be taken as paid on the date the claimant received it rather than the date the employer reported it.
They (eventually) they conceded that:
'On further consideration the Secretary of State concludes that the circumstances in this case can be brought within the exception in Universal Credit Regulations 2013 (UC Regs), regulation 61(3)(b)(i) as the reporting of a payment by the employer after the date on which it was actually made can be considered a 'failure' by the employer under that provision. We therefore accept that the First Tier Tribunal decided the case correctly [in deciding that there had been a failure to report the January 2016 earnings in the January 2016 assessment period].
Furthermore, UC Regs, regulation 61(2) enables the Secretary of State to make automated adjustments to an award on the basis of the information received (or not received) from the employer via HMRC’s real time information system (RTI) but where the claimant has disputed the RTI information and the grounds for an exception under regulation 61(3) are satisfied, UC Regs, regulation 61(4) requires the Secretary of State to make a determination applying the underlying principles for calculating earnings (which means they are taken into account in the assessment period in which they are received by the claimant) and, if necessary, make appropriate adjustments under regulation 61(5). On appeal, the First Tier Tribunal did that and so we wish to implement that decision.' (paragraph 11) .'