Pay back JSA on a tribunal OOC settlement?

[genosword]

Hi all. Came across this forum and wondered if anyone could help.

 

I have just settled prior to a tribunal unfair dismissal hearing. Do I have to pay back JSA and maternity allowance for the period up to the tribunal date? Note that this was not awarded by the tribunal, it was a private settlement. The tribunal case was withdrawn.

 

Also, is the settlement taxable income?

 

Many thanks!

[becky2585]

I don't think the benefits will need to be paid back in these circumstances. How was the settlement paid - was there a COT3 or Compromise Agreement? Theoretically, the first 30,000 should be tax free, so either way I wouldn't worry too much.

[genosword]

It was a COT3 settlement so it sounds like you could be right. I've been trying to find the answers to this thread on the direct gov and HMRC websites but no luck. Can I ask is your profession in this field?

[becky2585]

I'm an employment lawyer but I don't deal in tax issues! All I can say is that from experience, I've never had anyone say they have had to repay benefits after a settlement. Usually they're deducted from a Tribunal award (although quite a percentage seem to slip through the net).

[genosword]

Thank you for the info, thats very helpful . I'll check out the tax limit too. Cheers!

[Bigredbus]

Hi,

 

Becky is right, the recoupment system only applies to an award made by a tribunal, and therefore does not apply to a payment ageed by the parties (and would only apply to specific benefits... in your case, it would have been JSA only)

[johnvernon74]

You would however have to report the "capital" to DWP as a change in circumstances

[genosword]

Thanks both.

 

I am going to report the capital, as I'm sure they have ways of finding out anyway.

 

Cheers!