Universal credit and tax credits using redundancy payment to calculate final award

poppy12345

gazza1988 said:

Surely they can't have it both ways? It basically means that 1 benefit stops (tax credits) and another starts the following day (universal credit) but both benefits can "punish" me for the same singular payment to me made on 1 day.

Or can they? 

As has been previously advised, tax credits and UC are 2 completely different benefits. Tax credits is based on the money you earn, not when you receive it.

Had you waited 1 more day to claim UC then your earnings wouldn't have counted for your first AP. I agree that there should be a warning for this before you claim. Sadly there's nothing at all you can do about it now.

Spoonie_Turtle

poppy12345 said:

gazza1988 said:

Surely they can't have it both ways? It basically means that 1 benefit stops (tax credits) and another starts the following day (universal credit) but both benefits can "punish" me for the same singular payment to me made on 1 day.

Or can they? 

As has been previously advised, tax credits and UC are 2 completely different benefits. Tax credits is based on the money you earn, not when you receive it.

Had you waited 1 more day to claim UC then your earnings wouldn't have counted for your first AP. I agree that there should be a warning for this before you claim. Sadly there's nothing at all you can do about it now.

Not only that, but even administered by two different departments - Tax Credits by HMRC, and Universal Credit by DWP.

(poppy of course I know you know that but it seems unlikely OP has realised.)

gazza1988

Ah so different departments completely. To be honest I thought DWP was just an extension of HMRC. Sort of like HMRC is the "umbrella term" or to better explain it that DWP is a department in HMRC dealing with, well,  the work and pensions side of HMRC.

If that makes sense. 

calcotti

HMRC - Her Majesty’s Revenue and Customs
DWP - Department of Work and Pensions

HMRC are primarily responsible for taxes.
DWP are responsible for most benefits(including pensions).

Tax Credits are an oddity in being the responsibility of HMRC but I think that is bound out with the politics of their introduction being driven by Gordon Brown when he was a Chancellor.
(Never understood why Child Benefit comes under HMRC.)

sheramber

Gordon Brown was cutting staff numbers so HMRC applied to take on extra work  - tax credits and child benefit.

calcotti

sheramber said:

Gordon Brown was cutting staff numbers so HMRC applied to take on extra work  - tax credits and child benefit.

Didn’t know that. Thanks, sheramber.