Self-employed with cash saved to pay tax? It WON'T reduce your universal credit entitlement

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If you're self-employed and have been putting money aside to pay your self-assessment tax bill, this WON'T reduce the amount of universal credit you're entitled to claim, the Government has confirmed...

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'Self-employed with cash saved to pay tax? It WON'T reduce your universal credit entitlement'

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  • jessco1
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    If you get a tax repayment whilst claiming universal credit does this effect your universal credit payment? Do they class this as an income? Thanks in advance
  • calcotti
    calcotti Posts: 15,696 Forumite
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    jessco1 said:
    If you get a tax repayment whilst claiming universal credit does this effect your universal credit payment? Do they class this as an income? Thanks in advance
    Yes, it is treated as earnings and subject to the usual rules for earned income. It's very unfair in my view but that's what the law says.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • poppy12345
    poppy12345 Posts: 17,949 Forumite
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    jessco1 said:
    If you get a tax repayment whilst claiming universal credit does this effect your universal credit payment? Do they class this as an income? Thanks in advance

    Yes, it's classed as income in the month it's received.
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