Administrative Earnings Threshold to rise for Universal Credit.. Help please

calcotti

NedS said:?.. in my experience decision makers only really look at the Advice for Decision Makers guides, and not the actual legislation. 

Use of gross figures for earnings thresholds is fully set out in paragraph J2092 as referenced in one of my earlier replies.

NedS

calcotti said:

NedS said:?.. in my experience decision makers only really look at the Advice for Decision Makers guides, and not the actual legislation. 

Use of gross figures for earnings thresholds is fully set out in paragraph J2092 as referenced in one of my earlier replies.

Thanks for that - and that is definitely what the OP should refer to when requesting any mandatory reconsideration (in addition to the Regulation). It should be a simple MR as the law is on their side, but you never know!

nuanger

Thanks everyone,  I will politely guide the JC to the regulations and ask them to look at it again but with my gross earnings 

tifo

Spoonie_Turtle said:

tifo said:

When entering earnings manually UC want the net income after tax and NI. So I guess they should also take the same figure through RTI. 

Just like the UC payment is worked out on take-home pay for employed earnings.

That's what we enter it for, i.e. employed earnings. The take home pay is after tax and NI.

calcotti

tifo said:

Spoonie_Turtle said:

tifo said:

When entering earnings manually UC want the net income after tax and NI. So I guess they should also take the same figure through RTI. 

Just like the UC payment is worked out on take-home pay for employed earnings.

That's what we enter it for, i.e. employed earnings. The take home pay is after tax and NI.

This is of no relevance to the subject of this thread which is about how earnings are to be calculated against administrative thresholds rather than how they are to be calculated when determining the amount of UC payable. The earnings are calculated differently.

tifo

calcotti said:

This is of no relevance to the subject of this thread which is about how earnings are to be calculated against administrative thresholds rather than how they are to be calculated when determining the amount of UC payable. The earnings are calculated differently.

Our earnings are calculated against the AET/CET and the work allowance. If they are below the AET then this triggers a jobcentre appointment. Now that AET for a couple is £792 they need to be above this to remain in light touch. I know what you mean by using the earnings against the work allowance but it's all relevant. The earnings reported have a dual purpose for the AET/CET and the work allowance.

calcotti

tifo said:

calcotti said:

This is of no relevance to the subject of this thread which is about how earnings are to be calculated against administrative thresholds rather than how they are to be calculated when determining the amount of UC payable. The earnings are calculated differently.

Our earnings are calculated against the AET/CET and the work allowance. If they are below the AET then this triggers a jobcentre appointment. Now that AET for a couple is £792 they need to be above this to remain in light touch. I know what you mean by using the earnings against the work allowance but it's all relevant. The earnings reported have a dual purpose for the AET/CET and the work allowance.

The earnings figures to be used for AET/CET should be gross.
The earnings figures to be used for calculating payment should be net.
The figure used should therefore be different (except in cases where there are no NI, tax or pension deductions).

For a self employed claimant the business deductions still have to be deducted from income in order to arrive at the gross earnings. Any personal NI, tax or pension contributions should not be deducted.

tifo

calcotti said:

For a self employed claimant the business deductions still have to be deducted from income in order to arrive at the gross earnings. Any personal NI, tax or pension contributions should not be deducted.

I meant employed earnings .... not self employed. As you may be aware i'm on LCW and don't now work but we report my partner's employed earnings every month. These are usually above the AET and the 1 or 2 month's they were below AET in the past year and half (due to payment dates hitting 2 assessment periods) it generated a JC appointment immediately.

calcotti

tifo said:?.we report my partner's employed earnings every month. These are usually above the AET and the 1 or 2 month's they were below AET in the past year and half (due to payment dates hitting 2 assessment periods) it generated a JC appointment immediately.

Out of curiosity, why are your partner’s employed earnings not reported through RTI?

Falling below the AET would result in a JobCentre appointment - but the test against the AET should be done with gross rather than net earnings.

NedS

tifo said:

calcotti said:

For a self employed claimant the business deductions still have to be deducted from income in order to arrive at the gross earnings. Any personal NI, tax or pension contributions should not be deducted.

I meant employed earnings .... not self employed. As you may be aware i'm on LCW and don't now work but we report my partner's employed earnings every month. These are usually above the AET and the 1 or 2 month's they were below AET in the past year and half (due to payment dates hitting 2 assessment periods) it generated a JC appointment immediately.

The AET will not affect you personally (only your partner), as you will be in the Work Preparation regime due to LCW, so there are no work related requirements on you, and hence the AET cannot apply to you, even if your partners earnings are above the couple AET rate. You would still be expected to attend work focused interviews to discuss what work preparation activities you are able to do.