Are SEISS payments discounted from savings for Universal Credit?

Rain_Dancing

Hi everyone,
 I completed an Entitledto benefits check via this site to check on timings for claiming both SEISS and Universal Credit about a month ago and came across this statement...
( sorry I can't find the link to the actual page again to attach..I'll keep looking and edit if i find it... But I screen shot it!) 

"NEW Any amount you are paid as a grant from the government because of Coronavirus, such as from the Coronavirus Job Retention Scheme or the Self employed Income Support Scheme is ignored as part of your savings for 52 weeks after you receive it."

Does anyone know if this is the case? I can't find anything anywhere else that confirms this as this would make a BIG difference if the SEISS is discounted from savings, and would allow me to still claim UC . I feel I'm being being penalised for being frugal and putting a small amount of the SEISS away to save to live on as well as my self employed tax savings. 

Thanks in advance for any advice












 

calcotti

if you are self employed that is correct
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/891880/adm10-20.pdf

4. Any payment made to a claimant carrying on a trade, profession or vocation in relation to 1. a furloughed employee under the CJRS or 2. by way of a grant or loan to meet the expenses or losses of the trade, profession or vocation in relation to the outbreak of coronavirus disease is to be disregarded in the calculation of the claimant’s capital for a period of 12 months from the date on which it is received.
UC (CV) (SEC & R) Amdt Regs 20, reg 2(2)
Note. In this regulation the CJRS means the scheme (as it has effect from time to time) that is the subject of the direction given by the Treasury on 15.04.20 under section 76 of the Coronavirus Act 2020;
SEISS means the scheme (as it has effect from time to time) that is the subject of the direction given by the Treasury on 30.04.20 under that section of that Act;

The relevant regulation is here https://www.legislation.gov.uk/uksi/2020/522/regulation/2/made

calcotti

Note also that if you have money set aside to pay your self employed tax liability this can also be disregarded as savings.
https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/capital-rules/#Self-employment%20and%20capital

Self-employment and capital
DWP have confirmed that money put aside for the purpose of paying a tax bill for a business will be disregarded if it is in a business bank account or you can provide evidence to show why it put aside. This is based on the rule that business assets can be disregarded as the claimant’s personal capital.

Rain_Dancing

calcotti said:

Note also that if you have money set aside to pay your self employed tax liability this can also be disregarded as savings.
https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/capital-rules/#Self-employment%20and%20capital

Self-employment and capital
DWP have confirmed that money put aside for the purpose of paying a tax bill for a business will be disregarded if it is in a business bank account or you can provide evidence to show why it put aside. This is based on the rule that business assets can be disregarded as the claimant’s personal capital.

Thank you! especially for the links that's given me some peace of mind, and evidence if need be, appreciate your prompt answer Calcotti 😊

NedS

The SEISS grant is treated as income in the AP in which it is received. Normally, any income that is unspent at the end of the AP then falls to be treated as capital.

However, if you have found documentation that Coronavirus related grants are disregarded as capital for 12 months (sounds reasonable), then you should be clear that the amount of the SEISS grant should be deducted (disregarded) from any capital when making that calculation. Likewise with any money you have put aside to pay an income tax bill. If this has not happened, and your capital taken into account includes these figures, you should request a Mandatory Reconsideration and provide evidence (and maybe even a link to the guidance) stating these amounts should be disregarded.

Hope that helps.

calcotti

NedS said:.. if you have found documentation that Coronavirus related grants are disregarded as capital for 12 months (sounds reasonable),..

It's in the legislation I referenced.

Alice_Holt

Some more info here (and the sting in the tail that is "surplus earnings" under UC).

"Self-employment

The amount of Universal Credit you receive will depend on your circumstances, and will take into account your earnings, whether they are from your own business, from a SEISS grant....If you are also claiming SEISS, this will be treated as earnings and so may affect your Universal Credit payment. 

Surplus earnings

If you’re claiming Universal Credit, your earnings from previous months may affect how much you get.

If you earn more than £2,500 over the amount you can earn before you receive no Universal Credit payment, you are said to have surplus earnings. These surplus earnings will be taken into account in the next monthly assessment period. This may reduce the amount of Universal Credit you receive, or perhaps mean that you don’t get any Universal Credit payment that month.

Surplus earnings will stop being taken into account once you start receiving Universal Credit payments again, or 6 months after the original surplus was created – whichever is earlier."

https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/universal-credit-and-work/#:~:text=Surplus%20earnings,said%20to%20have%20surplus%20earnings.

SEISS payments (the second grant is worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total) could trigger the surplus earnings rule, and so affect UC payments in subsequent periods. 
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme#howmuch

calcotti

Alice_Holt said:

Some more info here (and the sting in the tail that is "surplus earnings" under UC).

At least for SEISS they’ve got rid of the normal (absurd) situation where the same chunk of money can fall to be treated as both surplus earnings and capital.