Tupe help needed

[Matty_Jack04]

Hi all

im currently in the middle of being tupe'd over to another company and was wondering if anyone out there can help with a question that has risen as I can't find anything on the Internet to help.

my ex partner (child's mother) also works for the same firm as myself, we have been offered a compensation payment of 30% of a years wage (loosing pension and other benefits) now when she is paid this compensation it will take her earnings above the threshold for claiming child tax credit and working tax credit making her close to £400 out of pocket each month (obviously a big worry) for next years claim. Now I'm not an expert on the benefit process by any stretch of the imagination but I don't see how this can be the case, why is the payment taken in like its a bonus payment or wage increase when it's a compensation package? Isn't she loosing out twice by this happening?
With the amount of tupe's occurring these days this obviously will happen a lot as I'm sure there's quite a few working single mothers out there surely we're missing something?

thanks in advance for any help or pointers in the right direction

[Scouse Hibee]

Hi all

im currently in the middle of being tupe'd over to another company and was wondering if anyone out there can help with a question that has risen as I can't find anything on the Internet to help.

my ex partner (child's mother) also works for the same firm as myself, we have been offered a compensation payment of 30% of a years wage (loosing pension and other benefits) now when she is paid this compensation it will take her earnings above the threshold for claiming child tax credit and working tax credit making her close to £400 out of pocket each month (obviously a big worry) for next years claim. Now I'm not an expert on the benefit process by any stretch of the imagination but I don't see how this can be the case, why is the payment taken in like its a bonus payment or wage increase when it's a compensation package? Isn't she loosing out twice by this happening?
With the amount of tupe's occurring these days this obviously will happen a lot as I'm sure there's quite a few working single mothers out there surely we're missing something?

thanks in advance for any help or pointers in the right direction

I had a friend suffer a similar scenario and they found out that as the compensation was not classed as earnings then it did not affect their tax credit claim and they suffered no loss as a result.

[speedy_gonzales]

Is it not also the case that benefits, such as tax credits, are calculated using the previous years P60? They do state that any changes of circumstance should be notified, to stop families getting over paid £1000's then having to pay it back, but generally, changes(within reason), don't affect that years claim.

[Matty_Jack04]

I had a friend suffer a similar scenario and they found out that as the compensation was not classed as earnings then it did not affect their tax credit claim and they suffered no loss as a result.

Great thanks for replying mate at least gives a little hope, she's in a right panic searching for info to put her mind at ease isn't the easiest either I'm not upto scratch on tupe or benefits

thanks again

[speedy_gonzales]

also, why is there a compensation payment if you are both being TUPE'd, the very point of which is to protect your employment status, T's&C's and payments??

[Matty_Jack04]

Is it not also the case that benefits, such as tax credits, are calculated using the previous years P60? They do state that any changes of circumstance should be notified, to stop families getting over paid £1000's then having to pay it back, but generally, changes(within reason), don't affect that years claim.

Yes mate that's right she told me that it will be next years claim that will be affected because her earnings this year will be up 30%

[CropleyWasGod]

If the compensation is classed as a payment in lieu of notice (PILON) then it's only taxable if it and other compensation total over £30,000.... and it would be the excess over £30k that would be taxed.

From that perspective, I would say that it (at least the first £30k) doesn't count as "earnings", and that it therefore doesn't count for Tax Credit purposes.

[Matty_Jack04]

also, why is there a compensation payment if you are both being TUPE'd, the very point of which is to protect your employment status, T's&C's and payments??

We're going from non-contributory pension to a contributory pension with the new firm, the compensation payment basically represents 1 years pension payment with a small sweetener on top

[Matty_Jack04]

If the compensation is classed as a payment in lieu of notice (PILON) then it's only taxable if it and other compensation total over £30,000.... and it would be the excess over £30k that would be taxed.

From that perspective, I would say that it (at least the first £30k) doesn't count as "earnings", and that it therefore doesn't count for Tax Credit purposes.

Wont be anymore than £3500 mate we are yet to find out if this will be taxed or not but it will be in with our wages meaning a raise in her p60 as someone above said,which would then goto the next years claim

[CropleyWasGod]

Wont be anymore than £3500 mate we are yet to find out if this will be taxed or not but it will be in with our wages meaning a raise in her p60 as someone above said,which would then goto the next years claim

If it's a PILON-type payment, I am pretty sure it shouldn't be on the P60.

[Hibs Class]

also, why is there a compensation payment if you are both being TUPE'd, the very point of which is to protect your employment status, T's&C's and payments??

TUPE is supposed to provide protection and that sometimes extends to a one-off compensation payment where a particular benefit cannot be maintained, for example having to leave a final salary pension scheme for a contributions based scheme.

[Matty_Jack04]

TUPE is supposed to provide protection and that sometimes extends to a one-off compensation payment where a particular benefit cannot be maintained, for example having to leave a final salary pension scheme for a contributions based scheme.

For some reason pensions aren't protected by tupe law at all I don't think if I've picked it up properly that is

[Hibs Class]

For some reason pensions aren't protected by tupe law at all I don't think if I've picked it up properly that is

Occupational pension schemes are covered. Some, such as personal pensions or stakeholder pensions aren't.

[Hibrandenburg]

I'm glad I read the other posts on this thread before posting. I was about to give you some tips on artificial hair.

[Matty_Jack04]

I'm glad I read the other posts on this thread before posting. I was about to give you some tips on artificial hair.

:faf:

[lyonhibs]

Beyond being a hairpiece, what is a TUPE? Does it stand for something?

I'm intrigued.

[Just Alf]

Transfer of Undertakings (Protection of Employment)

See http://en.wikipedia.org/wiki/Transfer_of_Undertakings_(Protection_of_Employment )_Regulations_2006