Working and on Universal Credit? Check you're getting the right amount of UC

NedS

I don't think it's really relevant what date HMRC pass the information to DWP - all that really matters is was the information available at ~1am on the morning after the AP ended when UC queried the data feed. Either the data was there (on CIS RTI) and can be used by UC for the AP that has just ended or it wasn't. The information is only queried by UC once per month, normally in the early hours of the morning immediately following the AP end date.

I'm assuming UC automatically triggers that query for every claim shortly after midnight immediately following the end of the AP (approx 8 million claims divided by 30 days per month = approx 267k queries per day, with two queries for a couple claim), and that query takes a few hours to run for all 267k claims, hence why we see it typically recorded in the early hours of the morning on each individual claim.

Stayinghopeful

Hi,

I wanted to share my experience as I believe there may be wider issues with how Universal Credit assesses people with non-standard income, particularly limited company directors and self-employed claimants.

I am the director of a small limited company. After returning to work following a period where the company was largely dormant while I cared for my seriously ill mother, Universal Credit assessed my earnings in a way that significantly distorted my actual financial position. Instead of recognising income month by month, around £5,000 worth of annual business profit has been treated as if it were income for a single assessment period, Instead of the annual profit.This dramatically reduced my entitlement and did not reflect the reality of my circumstances or cash flow. The situation has been incredibly stressful, particularly as I was also dealing with bereavement after losing both my mother and stepfather within a relatively short time.

What concerns me most is that the system seems unable to properly distinguish between:

• company profit,
• business operating funds,
• and personal income.

As a small business owner, those are not the same thing.

I have now had to take the matter to tribunal because I do not believe the calculation reflects my genuine earnings or circumstances.

After reading about the issues affecting people with irregular pay and automated UC calculations, I felt compelled to share my experience because I suspect others running small businesses may also be affected without fully understanding why their entitlement suddenly changes.

I would strongly encourage further investigation into how Universal Credit handles:

• limited company directors,
• fluctuating self-employed income,
• and retained business profits.

kaMelo

If you are a director of your own company and are are in total control of when and how much to pay (or not pay) yourself then, for UC purposes, your business is analogous to a sole trader. Just like a sole trader UC takes the total of salary and company profits as you're income in each assessment period when calculating any UC you may qualify for. This is laid out in UC legislation.

It may be tough for some small business owners, especially those with seasonal income, but you can always use the retained profits in the business to increase your income in quieter months.

Grumpy_chap

our new guide explains what the issue is, how to check if you're affected – and how to get back what you're owed if you've been underpaid

Well, is that guide imbalanced in any way? If there are errors possible within the system, then checks should work in both ways - to identify getting back underpayments

https://forums.moneysavingexpert.com/discussion/comment/82000932#Comment_82000932

For a single individual who is sole Owner and sole Employee / Director of a Ltd Co. then the UC system "sees through the veil" of the Ltd Co and assess the company income less allowable company expenses as the basis of determining the individual's income. The individual had their own choice as to how much remains in the business and how much is drawn from the business so only considering personal income would be an incomplete image and open to manipulation.