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Neutral Citation Number:	2014 UKUT 12 AAC
Reported Number:
File Number:	CG 412 2013
Appellant:	Secretary for Work and Pensions
Respondent:	SK
Judge/Commissioner:	Judge E. Jacobs
Date Of Decision:	11/01/2014
Date Added:	30/01/2014
Main Category:	Earnings and other income
Main Subcategory:	Calculation: self employed
Secondary Category:
Secondary Subcategory:
Notes:	Reported as [2014] AACR 24 Carer’s allowance – self-employed earnings – opening and closing value of stock in trade – whether any reduction an expense defrayed to be taken into account The Secretary of State terminated the claimant’s carer’s allowance after assessing that her self-employed earnings exceeded the £100 earnings limit for that benefit. The claimant successfully appealed to the First-tier Tribunal (F tT) on the basis that the fall in the value of her business’s opening and closing stock reduced her weekly earnings to below the limit. The Secretary of State was granted permission to appeal to the Upper Tribunal (UT). The issue before the UT was whether a reduction in the value of stock in trade was an expense that was defrayed in the period on which the claimant’s earnings were calculated. Held, allowing the appeal, that: 1. the reduction in the value of stock in trade was not an expense that was defrayed in the period on which the claimant’s earnings were calculated for several cumulative reasons: the natural meaning of defray (see CIS/212/1989); the purpose of the benefit (which was to assist with the individual’s immediate financial needs); the fact that the claimant’s daily income was unaffected by the change; and that such an approach had been implicitly accepted by a number of judges in different contexts over a number of years (paragraphs 18 to 23). The judge set aside the decision of the F-tT and re-made the decision to the effect that the claimant was not entitled to a carer’s allowance.
Decision(s) to Download:	[2014] AACR 24bv.doc