Tax rebate affecting Universal Credit amount

Johnm2019

Hi,

I got a letter today saying I have over paid tax by £250, I have filled in the details and I should get a refund back to my bank within the next 5 working days. My assessment period is 27th-26th of the month, I am hoping that this tax rebate will be counted for the 27th June-26th July assessment period, thus giving me a lower amount in my August UC.

Does anyone have any idea if I should be expecting whether it to count on the 27th May-26th June period, or 27th June-26th July period.

Thank you!

calcotti

When you get the refund you need to report it to UC through your journal.

poppy12345

Johnm2019 said:

Hi,

I got a letter today saying I have over paid tax by £250, I have filled in the details and I should get a refund back to my bank within the next 5 working days. My assessment period is 27th-26th of the month, I am hoping that this tax rebate will be counted for the 27th June-26th July assessment period, thus giving me a lower amount in my August UC.

Does anyone have any idea if I should be expecting whether it to count on the 27th May-26th June period, or 27th June-26th July period.

Thank you!

It depends on when you receive the refund.

calcotti

poppy12345 said:

Johnm2019 said:

Hi,

I got a letter today saying I have over paid tax by £250, I have filled in the details and I should get a refund back to my bank within the next 5 working days. My assessment period is 27th-26th of the month, I am hoping that this tax rebate will be counted for the 27th June-26th July assessment period, thus giving me a lower amount in my August UC.

Does anyone have any idea if I should be expecting whether it to count on the 27th May-26th June period, or 27th June-26th July period.

Thank you!

It depends on when you receive the refund.

I don't think UC get notified by HMRC so it may be dictated more by when OP reports it - but i don't think should report it until they have received it.

huckster

calcotti said:

poppy12345 said:

Johnm2019 said:

Hi,

I got a letter today saying I have over paid tax by £250, I have filled in the details and I should get a refund back to my bank within the next 5 working days. My assessment period is 27th-26th of the month, I am hoping that this tax rebate will be counted for the 27th June-26th July assessment period, thus giving me a lower amount in my August UC.

Does anyone have any idea if I should be expecting whether it to count on the 27th May-26th June period, or 27th June-26th July period.

Thank you!

It depends on when you receive the refund.

I don't think UC get notified by HMRC so it may be dictated more by when OP reports it - but i don't think should report it until they have received it.

Agree. If the tax rebate is not part of the information input by employers via RTI and is being paid by HMRC direct, that when @johnm2019 receives the money into his Bank, he needs to inform UC via journal that he has received a tax rebate of £xxx on x date from HMRC.

poppy12345

calcotti said:

poppy12345 said:

Johnm2019 said:

Hi,

I got a letter today saying I have over paid tax by £250, I have filled in the details and I should get a refund back to my bank within the next 5 working days. My assessment period is 27th-26th of the month, I am hoping that this tax rebate will be counted for the 27th June-26th July assessment period, thus giving me a lower amount in my August UC.

Does anyone have any idea if I should be expecting whether it to count on the 27th May-26th June period, or 27th June-26th July period.

Thank you!

It depends on when you receive the refund.

I don't think UC get notified by HMRC so it may be dictated more by when OP reports it - but i don't think should report it until they have received it.

Yes i know. What i meant was, what month their UC will be affected will depend on when they receive the rebate (as this is when they will need to report it onto their journal)

calcotti

poppy12345 said:

calcotti said:

poppy12345 said:

Johnm2019 said:

Hi,

I got a letter today saying I have over paid tax by £250, I have filled in the details and I should get a refund back to my bank within the next 5 working days. My assessment period is 27th-26th of the month, I am hoping that this tax rebate will be counted for the 27th June-26th July assessment period, thus giving me a lower amount in my August UC.

Does anyone have any idea if I should be expecting whether it to count on the 27th May-26th June period, or 27th June-26th July period.

Thank you!

It depends on when you receive the refund.

I don't think UC get notified by HMRC so it may be dictated more by when OP reports it - but i don't think should report it until they have received it.

Yes i know. What i meant was, what month their UC will be affected will depend on when they receive the rebate (as this is when they will need to report it onto their journal)

I was thinking that if a tax refund is received near the end of an AP and only reported a bit later after the UC payment has been issued, even if the date of receipt is reported, I’m not clear whether DWP will recalculate the previous payment to take account of it on the date received or simply allocate it to the AP in which it is reported.

Sallyp2

You only need to report the HMRC refund IF it takes your savings over the £6000 limit. The HMRC tax refund is a refund of tax you paid on earnings that you didn't need to. Its not income as such. You have already declared the income you paid that tax on.

ONLY declare it if you go over the £6000 savings limit. 

calcotti

Sallyp2 said:

You only need to report the HMRC refund IF it takes your savings over the £6000 limit. The HMRC tax refund is a refund of tax you paid on earnings that you didn't need to. Its not income as such. You have already declared the income you paid that tax on.

ONLY declare it if you go over the £6000 savings limit. 

That is not correct. For UC a tax refund that relates to a tax year in which there were employed or self employed earnings is treated as earnings, not capital. This is different to legacy benefits for which tax refunds are treated as capital.

A tax refund should therefore be declared to UC unless it relates to a tax year in which there was no employment or self employment (which is unlikely). Unless the refund is covered by an unused Work Allowance there will be an earnings deduction from the UC.

poppy12345

Sallyp2 said:

You only need to report the HMRC refund IF it takes your savings over the £6000 limit. The HMRC tax refund is a refund of tax you paid on earnings that you didn't need to. Its not income as such. You have already declared the income you paid that tax on.

ONLY declare it if you go over the £6000 savings limit. 

Please be aware of the advice you're giving because this isn't the first time your advice hasn't been quite correct.