HMRC Tax Rebate on Universal Credit

whitey225

thanks for the reply I forgot to say it was a CIS self-assessment tax return from self-employed earnings the return was for moneys reedy paid out in regards to travel accommodation etc

Surfmutt1

Hi folks. So I’m trying to work out where we stand, with respect to our circumstances of claiming UC. 

We are a family of 3 with a young child. 
A change of address prompted our transition to UC as of January last year. 

I am long term debilitated and am still in receipt of ESA (Support group) which apparently wasn’t affected by said transition. 

My partner returned to work part time last October. 

She has been paying emergency tax since then. To confound it further, she was being underpaid by her company. Both issues have been rectified. However, it has now given us a real headache. 

To begin with - we received our UC and after much confusion ( on both sides ) it was established that I would receive my ESA as I always have done. Pretty straightforward. 

When my my partner started work our UC was cost adjusted. Still poor - but slightly to the good. Still straightforward. 

Now typically we would receive about £900 UC with my partner taking home around £600 in wages.

However, she has now received £1900 this month. That figure is in respect of adjusted wages, tax rebate and company underpayment. I would be very grateful if someone could advise me on where we stand. I simply cannot navigate it with any degree of confidence. Because we don’t meet the threshold for taxable income, my partner wages will increase for the same hours. We expected more cost adjustments.

But! Will we lose almost our entire UC payment next month due to this months increase -  being counted as earnings? Will the DWP understand that these are one off payments. That they are corrections? Will it affect our eligibility? These are some of the questions I’m struggling to answer.  If anyone can help I’d really appreciate it. 

Kind regards!

poppy12345

Surfmutt1 said:

Hi folks. So I’m trying to work out where we stand, with respect to our circumstances of claiming UC. 

We are a family of 3 with a young child. 
A change of address prompted our transition to UC as of January last year. 

I am long term debilitated and am still in receipt of ESA (Support group) which apparently wasn’t affected by said transition. 

My partner returned to work part time last October. 

She has been paying emergency tax since then. To confound it further, she was being underpaid by her company. Both issues have been rectified. However, it has now given us a real headache. 

To begin with - we received our UC and after much confusion ( on both sides ) it was established that I would receive my ESA as I always have done. Pretty straightforward. 

When my my partner started work our UC was cost adjusted. Still poor - but slightly to the good. Still straightforward. 

Now typically we would receive about £900 UC with my partner taking home around £600 in wages.

However, she has now received £1900 this month. That figure is in respect of adjusted wages, tax rebate and company underpayment. I would be very grateful if someone could advise me on where we stand. I simply cannot navigate it with any degree of confidence. Because we don’t meet the threshold for taxable income, my partner wages will increase for the same hours. We expected more cost adjustments.

But! Will we lose almost our entire UC payment next month due to this months increase -  being counted as earnings? Will the DWP understand that these are one off payments. That they are corrections? Will it affect our eligibility? These are some of the questions I’m struggling to answer.  If anyone can help I’d really appreciate it. 

Kind regards

You have posted your question on the end of a thread that has 12 pages and is extremely long. Asking questions on other peoples threads cause confusion because they look at the first question and answer that. You should start your own thread with this question and they people will answer it.

Yes, the earnings during your assessment period affects the amount of UC you're entitled to. Whether or not you'll receive any UC will depend on what elements of UC you receive. I'm assuming you're claiming for help with your rent, which was why you had to claim UC when you moved? If you do claim for rent then your work allowance will be £287 per month, if you don't then it will be £503 per month. Any earnings over those amounts and your UC will be reduced by 63p for every pound you earn. Difficult to advise what you're entitled to without know more details. You could use a benefits calculator and it will tell you if you're entitled to anything.

https://www.entitledto.co.uk/

tomtom256

Surfmutt1 said:

Hi folks. So I’m trying to work out where we stand, with respect to our circumstances of claiming UC. 

We are a family of 3 with a young child. 
A change of address prompted our transition to UC as of January last year. 

I am long term debilitated and am still in receipt of ESA (Support group) which apparently wasn’t affected by said transition. 

My partner returned to work part time last October. 

She has been paying emergency tax since then. To confound it further, she was being underpaid by her company. Both issues have been rectified. However, it has now given us a real headache. 

To begin with - we received our UC and after much confusion ( on both sides ) it was established that I would receive my ESA as I always have done. Pretty straightforward. 

When my my partner started work our UC was cost adjusted. Still poor - but slightly to the good. Still straightforward. 

Now typically we would receive about £900 UC with my partner taking home around £600 in wages.

However, she has now received £1900 this month. That figure is in respect of adjusted wages, tax rebate and company underpayment. I would be very grateful if someone could advise me on where we stand. I simply cannot navigate it with any degree of confidence. Because we don’t meet the threshold for taxable income, my partner wages will increase for the same hours. We expected more cost adjustments.

But! Will we lose almost our entire UC payment next month due to this months increase -  being counted as earnings? Will the DWP understand that these are one off payments. That they are corrections? Will it affect our eligibility? These are some of the questions I’m struggling to answer.  If anyone can help I’d really appreciate it. 

Kind regards!

You really should start a new thread.

It may nil you for one assessement period and your claim may close, but then just reclaim, it is as simple as that.

calcotti

You say you were getting ESA Support Group (£484/month) plus wages of £600 and still got £900 UC/month. Assuming you rent your home I infer that your maximum UC entitlement before deductions is about £2,050/month.

If her earnings are now £1900 I estimate there will still be an entitlement to about £80 UC for the month. However, as advised by tomtom, if there is nil entitlement the claim will be closed but you will be able to log onto your journals and make a rapid reclaim.

Your ongoing entitlement will then depend on what the regular wages are in future.

As others have said you should really have posted a new thread rather than adding your query to a different thread about a specific aspect of UC.

Surfmutt1

Apologies to everyone for gate crashing. I have some cognitive and memory issues. I struggle with navigating a lot of things! I saw people talking on what I perceived to be a similar issue and jumped in. I didn’t mean to offend. 

I just want to add this as some clarification and maybe it will help as a reference for others. 

We have been royally shafted by the DWP. Apparently any monies considered earnings, be that tax rebate or underpayments , will be added to any wages earned in the month you receive them - then treated as one payment. They will not cost adjust over the period those monies pertain to. The DWP don’t average anything out. What they will tell you is ‘Tough !!!!!!, those are the rules, go and see your MP’ and put the phone down on you. So if you are considering using a tax rebate as a means to save - for say a car, to get you to work because your old one is a banger and may fail at any moment, !!!!!! don’t do that. Get your tax sorted ASAP. 

Thanks everyone and all the best! ✊

Daniela492

Hey everyone, Sadly I have been receiving Universal Credit since November 2019. I have just received a tax rebate of nearly £1100 covering the tax year from April 2019 to April 2020. Obviously I will have to declare it to Universal Credit. Would any of you know whether they will take any of the £1100?  Thank you. Kind regards Daniela

poppy12345

Daniela492 said:

Hey everyone, Sadly I have been receiving Universal Credit since November 2019. I have just received a tax rebate of nearly £1100 covering the tax year from April 2019 to April 2020. Obviously I will have to declare it to Universal Credit. Would any of you know whether they will take any of the £1100?  Thank you. Kind regards Daniela

A new thread would have been better, rather than ask your question on the end of a thread that's 12 pages long.

To answer your question, it's classed as income in the month it's received and will reduce your UC by 63% if you don't have the work allowance. You will need to report it on your journal.