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How does Marriage Allowance impact Universal Credit?

Tommy_77723
Posts: 43 Forumite

Hello,
We have just applied for Marriage Allowance and would stand to gain backdated pay for the last 4 years.
We claim Universal Credit and I was wondering how this will impact our next statement and our subsequent ones after this?
I'm worried that a backdated tax rebate over 4 years would result in one-lump sum increase in my income that would close our claim. Would that happen?
Questions:
1) How is the Marriage Allowance for a current year allocated? Is it one lump sum or is it split over the entire year?
2) Will I have to tell Universal Credit about our backdated pay? Or is this something that they would automatically know as it is through HMRC?
3) How will this impact our monthly earnings and therefore our statement for UC?
4) I'm worried that a backdated tax rebate over 4 years would result in large one-lump sum increase in my income that would close our claim. Would that happen?
Thank you for any help
We have just applied for Marriage Allowance and would stand to gain backdated pay for the last 4 years.
We claim Universal Credit and I was wondering how this will impact our next statement and our subsequent ones after this?
I'm worried that a backdated tax rebate over 4 years would result in one-lump sum increase in my income that would close our claim. Would that happen?
Questions:
1) How is the Marriage Allowance for a current year allocated? Is it one lump sum or is it split over the entire year?
2) Will I have to tell Universal Credit about our backdated pay? Or is this something that they would automatically know as it is through HMRC?
3) How will this impact our monthly earnings and therefore our statement for UC?
4) I'm worried that a backdated tax rebate over 4 years would result in large one-lump sum increase in my income that would close our claim. Would that happen?
Thank you for any help
0
Comments
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They will see it automatically, a tax refund will be taken into account with your universal credit and may impact your monthly payment when it is received, but will not close your claim."You've been reading SOS when it's just your clock reading 5:05 "0
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sammyjammy said:They will see it automatically, a tax refund will be taken into account with your universal credit and may impact your monthly payment when it is received, but will not close your claim.
If I get a tax rebate of four years (circa £1000), would I have an extra £1000 income that month for UC?0 -
Tommy_77723 said:If I get a tax rebate of four years (circa £1000), would I have an extra £1000 income that month for UC?Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0
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calcotti said:Tommy_77723 said:If I get a tax rebate of four years (circa £1000), would I have an extra £1000 income that month for UC?
Would I be able to delay telling UC about the payment until after a cost of living month had passed?0 -
Tommy_77723 said:Would the entire four year rebate be classed as one lump some for that month?
Would I be able to delay telling UC about the payment until after a cost of living month had passed?Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
calcotti said:Tommy_77723 said:Would the entire four year rebate be classed as one lump some for that month?
Would I be able to delay telling UC about the payment until after a cost of living month had passed?
I'm not sure what to do now.
Is there a way to calculate the payment beforehand?0 -
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born_again said:
Is it not automatically known then?0 -
Tommy_77723 said:born_again said:
Is it not automatically known then?Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
Where the refund is given by amending your tax code (which means you get a higher amount in your pay packet) then that will feed through automatically from HMRC to DWP and your UC will be reduced as a result.
Where you receive a refund directly, you need to tell DWP about that.
tax refunds are taken into account where the refund relates to any tax year that you were in paid work (it doesn't matter whether the refund relates to that paid work)0
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