UC and rental income - what to declare

turtlemoose

I have been successful in applying for a capital disregard (for 6 months) due to my second property being up for sale.

I currently get some income, sometimes, from the tenants. This is variable and erratic, I never know how much it is going to be, if anything at all.

I have to report this income to UC every month, but what I'm trying to understand is , is it like it was under Tax Credits where it was the TAXABLE income they take in to consideration (ie you could deduct the mortgage interest etc) or is it GROSS income they will use for the calculation?

I have asked this question twice on my journal and once on the phone, and each time been told "we'll look in to it" and i'm yet to get an answer.

[Deleted User]

I suspect you won't get much of answer here although I might be wrong, what I don't understand is perhaps what the DWP won't understand is that if you have tenants in the property
why don't you get a regular fixed income from them?

huckster

I have seen such income from rent disregarded, as I think it needs be a profit amount after expenses e.g. Mortgage interest, costs of maintaining house.

You can probably illustrate a calculation, where there is no monthly income from rent.

I have also seen rent counted as capital after each month. So a claimant advised they had £10000 savings. After each month £800 in clear (after costs) was added and therefor a deduction was made on increased capital held.

Your Case Manager can refer this for a a Decision Maker to take a look at, but yhat might delay you receiving payment. Alternatively they can just ask question to technical officer, to see what they think should be done.

turtlemoose

venison wrote: »

if you have tenants in the property
why don't you get a regular fixed income from them?

Because they are on benefits and have had their housing benefit reduced. They can't/won't make up the shortfall, this has been going on for a while now while I naively believed their claims that they would sort it out/make up the difference etc etc. I can't afford to keep the house any more. I don't know what is going on with their HB claim, I receive it direct from the council, and the amounts and payment frequency vary wildly.

turtlemoose

I know that it can be referred to a Decision Maker - I was more after if someone knew if there is published guidance on this matter so that I'll know if the decision is correct or not - my experience so far hasn't been great and have had multiple staff say things on my journal that contradict the previous staff member etc.

I thought I'd ask on this board, as when I asked last year about the capital disregard, someone was able to signpost me to a pdf with the criteria clearly stated. I wondered if the same thing existed for rental income (and other income in general I suppose).

huckster

It is not guidance, but legislation. Think it is Social Security Act, but have not got this to hand.

turtlemoose

I have been reading the UC regulations on the following link, and 72 (3) states "where a person's capital is treated as yielding income, any actual income derived from that capital, for example RENTAL, interest or dividends, is to be treated as part of the person's capital from the day it is due to be paid to the person."

https://www.legislation.gov.uk/uksi/2013/376/part/6/chapter/3/made

This is the only reference I can find to rental income. Rental income is NOT listed in section 66 of the same link "What is included in unearned income?" , so I don't think it should be deducted £1 for £1.

If the rental income is to be considered part of my capital, then should it not be disregarded while I am within the timescale of the 6 month disregard for that capital?

I'm not expecting an answer, just musing to myself really, I just hate it when threads are started with interesting questions and then left to wither away..... I've posted the above info on my journal and requested it to go to a Decision Maker so let's see.