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Tax rebates and universal credit.
zaffre4
Posts: 4 Newbie
I have just received a tax rebate of just over £800. Due to the coronavirus I am now on universal credit. As I have over paid tax last year would this effect my claim this year as it says they take 63p out of every £1 which would mean I loose over £500 I would normally have got back if I had been working.
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Comments
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Unfortunately UC regulations mean that a tax rebate is treated as earnings when received so you do indeed lose 63% of the rebate.
it’s completely unjustified and is perverse in my opinion but was a deliberate government policy change from the previous benefits system which treated tax rebates as capital and therefore in most cases made no difference to a benefits claim.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.1
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