Tax refund saffecting Universal Credit Payments

Poloblue

I got a tax rebate letter and I logged online and got the below reason that I was getting a refund.  . Does that mean my universal credit payment won't be affected? 
You did not get back the tax that HMRC owed you for the time you were not working or claiming state benefits.

calcotti

If you receive a tax rebate you must tell UC and it will be treated as earnings for the assessment period in which the rebate is received if you worked at all in the tax year to which the rebate relates. The reason you are getting the rebate is not relevant.

Poloblue

calcotti said:

If you receive a tax rebate you must tell UC and it will be treated as earnings for the assessment period in which the rebate is received if your u worked at all in the tax year to which the rebate relates. The reason you are getting the rebate is not relevant.

Thamks.  So if after the 63p in the pound is deducted it wipes out the whole amount and the universal credit amount is zero does that mean the universal credit claim closes automatically?  If it doesn't there is still £300 left with the 63 p calculation. So would that be taken of the following months universal credit payment? 

calcotti

Poloblue said:

calcotti said:

If you receive a tax rebate you must tell UC and it will be treated as earnings for the assessment period in which the rebate is received if your u worked at all in the tax year to which the rebate relates. The reason you are getting the rebate is not relevant.

Thamks.  So if after the 63p in the pound is deducted it wipes out the whole amount and the universal credit amount is zero does that mean the universal credit claim closes automatically?  If it doesn't there is still £300 left with the 63 p calculation. So would that be taken of the following months universal credit payment? 

Normally the claim would close if there is nil entitlement for the month. At the moment claims may be left open. Best thing is to keep an eye on your journal. If the claim is closed you will be able to do a ‘rapid reclaim’ through your journal.

If there is £300 ‘left over’ it will not affect the following month. (Income can affect more than one month but an amount of this size will not.)

Treatment of tax rebates under UC is completely unjustified in my opinion.

Poloblue

Thanks thought it could be just one month given the surplus income rules.  Yeah it's way out of proportion and should be treated as capital. 

calcotti

Poloblue said:

Thanks thought it could be just one month given the surplus income rules.  Yeah it's way out of proportion and should be treated as capital. 

As it is for the means tested benefits that UC is replacing. Deliberate change by the government.

Poloblue

Yeah its like a lot of other sly things they have done.  I even had to withdraw a mandatory reconsideration in relation to a date they accepted my capital declaration from as it had stopped future payments and they hadn't even looked at it after 6 weeks despite it all being their fault in the first place due to incorrect information being given out by an employee in the job centre. 

tomtom256

Poloblue said:

Yeah its like a lot of other sly things they have done.  I even had to withdraw a mandatory reconsideration in relation to a date they accepted my capital declaration from as it had stopped future payments and they hadn't even looked at it after 6 weeks despite it all being their fault in the first place due to incorrect information being given out by an employee in the job centre. 

Why did you have to withdraw the mandatory reconsideration? Was it just impatience? Unfortunately incoerrect information is often given out, but that shouldn't mean you have to withdraw an MR, they just take a while, especially in the current climate as decision makers have been moved to process claims.

poppy12345

An MR can sometimes  take 10 weeks and that under normal times.