UC/Tax rebate

Adamka8788

Hi was just looking for advice. 
We have just started on UC (just had 1st months payment) 
I'd started a tax rebate claim last month and should find out how much I'm owed next month (possibly over £2000) 
The claim goes back for the past 5 years! Both of us have been in work until she stopped in January.
As I'm using an accountancy that specialises in rebates, they take a fee. So the amount sent from hmrc to UC will be different to what I actually receive. If that makes sense
Will our claim be effected by the rebate?
Thanks in advance 
Adam 

calcotti

The tax rebate will be treated as earning for the month in which you receive it. The relevant amount will be the amount due from HMRC - the fact you’re u have a fee to pay will not be relevant. If this rebate results in nil entitlement to UC for the month your claim will be closed but you will be able to make a rapid reclaim through your UC journal.

Adamka8788

Ah so it will only effect us for 1 month, essentially the rebate will cover what we would have normally received? Then back to normal the following, is that correct? 

calcotti

Adamka8788 said:

Ah so it will only effect us for 1 month, essentially the rebate will cover what we would have normally received? Then back to normal the following, is that correct? 

Depending on the numbers, that is likely to be correct. It will be treated in exactly the same way as if you had earned the money in that month. If you have a £2,000 rebate a deduction of £1,260 (63%) will be made from your UC. The deduction will be less if you have a Work Allowance which has not already been used up by other earnings.
if there is nil UC entitlement there may ‘surplus earnings’ which are carried forward into the following month - the rules around this are complex.