HMRC Tax Rebate on Universal Credit

calcotti

Just to complicate things further

The Universal Credit, Personal Independence Payment, Jobseeker's Allowance and Employment and Support Allowance (Claims and Payments) Regulations 2013

Withdrawal of claim
31.—(1) A person who has made a claim for benefit may withdraw it at any time before a determination has been made on it by notice in writing received at an appropriate office, by telephone call to a telephone number specified by the Secretary of State or in such other manner as the Secretary of State may decide or accept.

(2) Any notice of withdrawal given in accordance with paragraph (1) has effect when it is received.

Duration of award
36.—(1) A claim for universal credit is to be treated as made for an indefinite period and any award of universal credit on that claim is to be made for an indefinite period.

Taken together these appear to mean that once a claim has been decided the claimant cannot withdraw it. It will only end when circumstances result in a nil award.

calcotti

Regulation 21(3) of the UC Regs 2013 which we both looked at earlier has been superseded by the following regulation

The Universal Credit (Digital Service) Amendment Regulations 2014

3.—(1) The Universal Credit Regulations 2013 are amended as follows

(b)in regulation 21 (assessment periods) for paragraphs (3) and (4) substitute—

(3C) Where a claim is made by a single person or members of a couple jointly and the claimant (or either joint claimant) meets the following conditions—

(a)the claimant was previously entitled to an award of universal credit the last day of which fell within the 6 months preceding the date on which the claim is made; and

(b)during that 6 months—

(i)the claimant has continued to meet the basic conditions in section 4 of the Act (disregarding the requirement to have accepted a claimant commitment and any temporary period of absence from Great Britain that would be disregarded during a period of entitlement to universal credit); and

(ii)the claimant was not excluded from entitlement by regulation 19 (restrictions on entitlement – prisoners etc.),

each assessment period for the new award begins on the same day of each month as the assessment period for the old award or, if there was an old award in respect of each joint claimant, the assessment period that ends earlier in relation to the date on which the claim is made.

I think this is clear that within the six month period the assessment period start date is maintained and the advice you have received by phone appears incorrect.

This is one of the problems with UC, they keep changing the regulations so working out what is up to date is a challenge in itself.

mineral68

There is nothing stopping a claimant closing their claim for UC. No government or legislation could force a citizen to remain on a statutory benefit against their wishes.
My understanding is now that there are two types of claim for UC: full claim and rapid re-claim. A rapid re-claim applies when a claim is 'closed' (becomes dormant) because a claimant's work earnings mean that there is no UC money being paid to the claimant. A full claim could be a first ever claim or a new claim where a previous claim has been completely closed (by the claimant or otherwise). The old claim is now extinct and not dormant. A new assessment date/date of entitlement now applies.

mineral68

This refers to a rapid re-claim and not a full new claim.

mineral68

How could you continue to meet the basic conditions of entitlement if you were not claiming UC, and why would you have to, or indeed want to, meet conditions that you were no longer subject to?

mineral68

And there is something else that is even more fundamentally wrong and disturbing going on here. The DWP are treating an income tax refund as taxable earnings....'A repayment of income from HMRC is to be treated as employed earnings...' And employed earnings are taxable. I have just spoken to HMRC on the phone and they have assured me that an income tax refund is not taxable. Under regulation 55(2) it states:
'Employed earnings comprise any amounts that are general earnings,..... but excluding (b) amounts that are exempt from income tax under Part 4 of ITEPA.'
An income tax refund is exempt from income tax, so why is the DWP classing it as taxable employed earnings for the purposes of UC? Who is right on income tax: HMRC or McVey at the DWP?

calcotti

mineral68 wrote: »

A new assessment date/date of entitlement now applies.

That is not my reading of the revised regulation I have quoted.

calcotti

mineral68 wrote: »

How could you continue to meet the basic conditions of entitlement if you were not claiming UC, and why would you have to, or indeed want to, meet conditions that you were no longer subject to?

You don’t have to claim a benefit to meet the qualifying conditions. I think the basic conditions simply refer to age, being in Great Britain and not in full time education.

calcotti

mineral68 wrote: »

And there is something else that is even more fundamentally wrong and disturbing going on here. The DWP are treating an income tax refund as taxable earnings....'A repayment of income from HMRC is to be treated as employed earnings...' And employed earnings are taxable. I have just spoken to HMRC on the phone and they have assured me that an income tax refund is not taxable. Under regulation 55(2) it states:
'Employed earnings comprise any amounts that are general earnings,..... but excluding (b) amounts that are exempt from income tax under Part 4 of ITEPA.'
An income tax refund is exempt from income tax, so why is the DWP classing it as taxable employed earnings for the purposes of UC? Who is right on income tax: HMRC or McVey at the DWP?

You are mixing things up. A tax refund is not itself taxable because that’s what tax legislation says. Tax refund is to be treated as earned income because that’s what the UC legislation says. Whether that is either fair or logical is irrelevant.

I don’t think I have anything more to say on this thread. Whatever you decide to do, good luck and do let us know how you get on.

mineral68

Yes will do that.