Self Employed: Will any Universal Credit received be deducted from the Government 80% Grant

calcotti

petercox said: So if I receive the grant in June even though it is back dated to March when the UC is being claimed for I won't owe the UC because I will be paid the SEISS in June? I'm still confused

As Jeremy has explained UC works on a cash basis. What matters is when you receive the money not the period of time it is for.

If you claim UC today you will get your first UC payment on 23rd May (to cover the period 17th April to 16th May).

Your next payment will be due on 23rd June. If you received the SEISS on or before 16th June it will be taken into account as earned income when calculating the UC payment for June. The May payment of UC will not be affected at all - you have been paid it, it is yours to keep.

Depending on the size of the grant and how your UC is calculated the grant may also have an impact on the calculation of the amount of UC payable in July (and possibly August). Once the SEISS has been accounted for your UC will revert to the fill amount.

If the grant is paid after 16th June it would not be taken into account until the July calculation.

petercox

So because I will not receive an SEISS payment until June regardless that the SEISS and UC will be paying me for the exact same period of time the DWP will not want to claw this money back as they have done in the past when I have been overpaid for child tax credit. Can you tell me also will my claim for UC begin from the date I had to stop work due to the Covid lockdown or from the date I make the claim?
I apologise for not fully comprehending your explanations. It is just that from watching Martin Lewis talk about this I was of the understanding that the option to claim UC was to help people in my situation until the SEISS grant comes through. I did not know that UC was something I am entitled to keep once the proper grant is paid through SEISS.

poppy12345

petercox said:

So because I will not receive an SEISS payment until June regardless that the SEISS and UC will be paying me for the exact same period of time the DWP will not want to claw this money back as they have done in the past when I have been overpaid for child tax credit. Can you tell me also will my claim for UC begin from the date I had to stop work due to the Covid lockdown or from the date I make the claim?
I apologise for not fully comprehending your explanations. It is just that from watching Martin Lewis talk about this I was of the understanding that the option to claim UC was to help people in my situation until the SEISS grant comes through. I did not know that UC was something I am entitled to keep once the proper grant is paid through SEISS.

No, you will NOT have to repay back your UC as explained quite a few times in a number of comments.

Your claim will start from the date you claim, it will not be backdated to the date you stopped working. UC can only be backdated for a maximum of 1 month in the most extreme circumstances and this is not one of them.

calcotti

I don’t know how many different ways you want us to repeat this, Receiving the SEISS will not affect UC payments already received prior to payment of the grant.

Hermann

petercox said:

So because I will not receive an SEISS payment until June regardless that the SEISS and UC will be paying me for the exact same period of time the DWP will not want to claw this money back as they have done in the past when I have been overpaid for child tax credit. Can you tell me also will my claim for UC begin from the date I had to stop work due to the Covid lockdown or from the date I make the claim?
I apologise for not fully comprehending your explanations. It is just that from watching Martin Lewis talk about this I was of the understanding that the option to claim UC was to help people in my situation until the SEISS grant comes through. I did not know that UC was something I am entitled to keep once the proper grant is paid through SEISS.

UC works differently to Tax credits in that respect, it just uses what you've received that month as the income for that months calculation, and its recalculated every month on that months figures. Once you've been paid it yours.

Be very careful if you're already getting Tax Credits though. Claiming UC will automatically end your Tax Credit claim with no way back. Many people are worse off under UC than Tax credits so you need to work that out before claiming particularly taking into account of the minimum income floor rule being reinstated. 

petercox

Thank you Hermann for your very reasoned informed and polite explanation. The point you make about the tax credit system is something I had not considered.