Universal credit & tax refund

Stuckinarut

I received a decent tax rebate, and as per the letter from HMRC I added a note to my journal telling them I received it on 26th June. I was told that HMRC would notify them and UC calculated accordingly. My assessment period was up until 6th July. Checked today for see I will be paid more UC than expected as no sign of tax rebate. Does anyone have experience of this? Will it sort next month?

huckster

Yes it may be resolved next month.

The last employers with the tax rebate affected wage slip, often report it a few weeks later. So if you received it on 26th, I expect it won't be reported until after 6th July.

If this was an HMRC processed tax rebate and no employers will report it, then you might have to wait for UC to process it from your journal message. The tax rebate should be treated as earnings in the assessment period it was received and if it was not taken into account by UC, then you may owe an overpayment.

Are HMRC solely involved or will an employers report the tax rebate ?

Stuckinarut

It was HMRC who processed the refund and the letter you get says you should notify UC, which is why I put the note on my journal. It was them who replied saying it's ok HMRC will notify us, which clearly they haven't. I knew I could then end up overpaid. Am I better putting another note on my journal to try and sort it before I receive the payment?

calcotti

Assuming your other income is fairly similar each month, in the long run it won't make any difference to the total UC you receive whether they process it this month or next. However no harm in posting a further note in your journal - just be clear that you are reminding them of the information you previously gave them so they don't think you have had two refunds.

Stuckinarut

I expected roughly £260 UC and received over £700 so it makes a big difference to my budget. I'm going to sit the money in my other account

calcotti

Stuckinarut wrote: »

I expected roughly £260 UC and received over £700 so it makes a big difference to my budget. I'm going to sit the money in my other account

That's sensible, at some point DWP will process the refund and you will get a reduced monthly payment so keeping the money aside for when that happens is clearly prudent.

Bear in mind that the UC reduction will only be 63% of the tax refund, not the whole amount. If you are entitled to a Work Allowance (because you have LCWRA or child element in your award) then, unless you have other earnings that have already used this up, because a tax refund is treated as earnings part of the refund will be ignored completely.

Stuckinarut

Yes I get the work allowance, my UC basically covers my childcare costs. I will put away the difference between my expected amount and what I received. I have put another note on my journal. Thanks for the advice