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UC & HMRC Tax Rebate

Apologies if this has been covered before but I'm still confused


During the tax year 2018-2019 I was on the incorrect tax code and am now due a refund of £1200ish from HMRC.



I packed my job in in Dec 2018 and having saved enough didn't earn any other income until I signed on at the beginning of April 2019. I am still receiving UC as I haven't found a job.



I gather this could affect my UC payment (I currently get about £700 per month in total at the moment). Is that correct and if so how much UC income am I likely to lose? Do I have to declare it now or will HMRC inform the DWP?

Comments

  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 19 June 2019 at 3:34PM
    JWhen you get the refund it will be treated as earnings. I recommend that you inform DWP yourself even though they may be informed by HMRC. If it is £1200 you may get no UC for the assessment period in which you receive the refund. As a result your claim may be closed but you will be able to make a rapid reclaim via your online journal.

    In my opinion it’s very unfair that you lose UC because of a refund of tax you shouldn’t have had to pay anyway but that’s what the UC rules say. It was different for previous benefits.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
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