UC LCWRA appeal

calcotti

If you have been found to have LCW (or LCWRA) the threshold is irrelevant. The threshold simply prevents someone in work being referred for a WCA in the first place unless they meet one of the exceptions.

You have LCW so can earn whatever you can mange to earn.

poppy12345

tifo said:

As a couple we already use our work allowance of £573. Under LCW I would get a work allowance anyway. In this case I personally don't get a work allowance because we're using a work allowance as a couple with child and no housing benefit. Is that correct?

So anything I earn will be taxed at 55%? (we already get a deduction).

Yes, you can only have 1 work allowance per claim. Deductions for earnings when claiming UC is not tax. It's an earnings taper rate which is currently 55%.

tifo

poppy12345 said:

tifo said:

As a couple we already use our work allowance of £573. Under LCW I would get a work allowance anyway. In this case I personally don't get a work allowance because we're using a work allowance as a couple with child and no housing benefit. Is that correct?

So anything I earn will be taxed at 55%? (we already get a deduction).

Yes, you can only have 1 work allowance per claim. Deductions for earnings when claiming UC is not tax. It's an earnings taper rate which is currently 55%.

Yes, i know it's not a tax but a taper but the end effect is 55% of the income is taken away from real money.

If i earn a hypothetical £1,000 during the assessment period they'll take £550 from my UC so i've given away £550. If i paid (example) 55% tax i'd give away £550.

A lot of people see the UC taper rate as a stealth tax. It's all money back in the govt coffers at the end of the day, wherever it comes from.

https://www.bbc.co.uk/news/58870012 (Title: the universal credit claimants effectively paying top tax rates).

I see in the article it says 'after tax and NI' but UC want the gross figure so it's before tax and NI?

Spoonie_Turtle

For future reference, news articles are not always the clearest or most reliable source.

https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/how-to-report-your-earnings-from-self-employment

It's based on what you receive and what you pay in each AP.

You would not have the MIF because you have LCW.

calcotti

tifo said: Yes, i know it's not a tax but a taper but the end effect is 55% of the income is taken away from real money.

If i earn a hypothetical £1,000 during the assessment period they'll take £550 from my UC so i've given away £550. If i paid (example) 55% tax i'd give away £550.

A lot of people see the UC taper rate as a stealth tax. It's all money back in the govt coffers at the end of the day, wherever it comes from.

Another way of looking at that is that although you earn £1000/month the government still give yo, through UC, an extra £450 (which is tax free). They are obviously not going to give the same amount of UC to different people regardless of what they are earnings.

poppy12345

tifo said:

poppy12345 said:

tifo said:

As a couple we already use our work allowance of £573. Under LCW I would get a work allowance anyway. In this case I personally don't get a work allowance because we're using a work allowance as a couple with child and no housing benefit. Is that correct?

So anything I earn will be taxed at 55%? (we already get a deduction).

Yes, you can only have 1 work allowance per claim. Deductions for earnings when claiming UC is not tax. It's an earnings taper rate which is currently 55%.

If i earn a hypothetical £1,000 during the assessment period they'll take £550 from my UC so i've given away £550. If i paid (example) 55% tax i'd give away £550.

You'd be a lot worse off each month if you didn't claim UC. You can't expect to earn X amount outside of your work allowance and keep that as well as receive UC.

NedS

tifo said:

poppy12345 said:

tifo said:

As a couple we already use our work allowance of £573. Under LCW I would get a work allowance anyway. In this case I personally don't get a work allowance because we're using a work allowance as a couple with child and no housing benefit. Is that correct?

So anything I earn will be taxed at 55%? (we already get a deduction).

Yes, you can only have 1 work allowance per claim. Deductions for earnings when claiming UC is not tax. It's an earnings taper rate which is currently 55%.

Yes, i know it's not a tax but a taper but the end effect is 55% of the income is taken away from real money.

If i earn a hypothetical £1,000 during the assessment period they'll take £550 from my UC so i've given away £550. If i paid (example) 55% tax i'd give away £550.

A lot of people see the UC taper rate as a stealth tax. It's all money back in the govt coffers at the end of the day, wherever it comes from.

https://www.bbc.co.uk/news/58870012 (Title: the universal credit claimants effectively paying top tax rates).

I see in the article it says 'after tax and NI' but UC want the gross figure so it's before tax and NI?

I think your view is clouded. The bottom line is that you will be better off working. The more you work, the more better off you will be.

It is a simple fact for everyone that works, that they will not get to keep everything they earn. The more you earn, the more you pay in taxes and deductions. That's a fact of life. Personally I would much rather earn £80k a year and pay 40% tax and 13.75% NI than earn £8k a year and pay no tax and have a little bit of UC top up.

UC is a means tested system that tapers away as your means increase. The more you earn, the less help you get, and that is only right and fair on the tax payers that pay for it. The UC system is already massively generous, much more so than the old legacy benefits system.

calcotti

NedS said: The UC system is already massively generous, much more so than the old legacy benefits system.

Would definitely disagree with the use of the word massively. UC is however more generous for some than legacy benefits - but equally it is less generous for others. 

tifo

calcotti said:

Would definitely disagree with the use of the word massively. UC is however more generous for some than legacy benefits - but equally it is less generous for others. 

With the extra headache it gives to claimants it's debateable if it's better than legacy benefits.

Of course, because of personal circumstances some people will gain more some people will lose more.

tifo

poppy12345 said:

You can't expect to earn X amount outside of your work allowance and keep that as well as receive UC.

That's not what I kind of said.