We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
How does Marriage Allowance impact Universal Credit?
Comments
-
Icequeen1 said: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)
So for this, I would to physically tell them for them to know?
Because this changes your tax code but is also a refund?
Which one is it haha?0 -
If your tax code for this year is amended before your March pay then you will get the extra £252 in that pay packet. The refund for past years will come as a cheque and you need to inform them of this. Whether they know about it is completely different from you having to tell them about it.
0 -
The previous years' rebate is paid in a lump sum and you need to advise UC when it is received.
For the tax year 2022/23, which finishes on 5 April it is not likely the increased allowance will operate for this year so it will be dealt with after the end of the tax year when pay and tax figures for the year are known.and any refund issued.
Your tax code will n be amended until 2023/24 - tax year from 6 April 23- so the tax you pay weekly/monthly will be reduced so relief is given over the year.
if your tax code is not amended until later in the year then the reduced tax will be worked out back to the start of the tax year and will be paid in the pay packet that week/month.
Subsequent pay packets will have less tax deducted.0 -
Tommy_77723 said:Icequeen1 said: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)
So for this, I would to physically tell them for them to know?
Because this changes your tax code but is also a refund?
Which one is it haha?
But it would be better to tell them of the refund & reason, asking if it will effect UC.
Life in the slow lane0 -
Tommy_77723 said: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 are still waiting to see if the refund cheque money will also need to be paid back to uc/ off set in some way, it’s caused so much stress, if it does then I will also owe council tax more money.
with all the stress it has caused due to my long term health situation then I wish I had never done it. Hope you fair better than we did.Life throws you curve balls and kicks you in the teeth… learning to live with weird neurological complications and spine injury and hating fall.0 -
Tommy_77723 said:born_again said:
Is it not automatically known then?Life throws you curve balls and kicks you in the teeth… learning to live with weird neurological complications and spine injury and hating fall.0 -
sarahlply said:
we are still waiting to see if the refund cheque money will also need to be paid back to uc/ off set in some way,
If you were employed or self employed in the year which the refund refers to then it's classed as income and will reduce your UC.
1 -
poppy12345 said:sarahlply said:
we are still waiting to see if the refund cheque money will also need to be paid back to uc/ off set in some way,
If you were employed or self employed in the year which the refund refers to then it's classed as income and will reduce your UC.Life throws you curve balls and kicks you in the teeth… learning to live with weird neurological complications and spine injury and hating fall.0 -
sarahlply said:poppy12345 said:sarahlply said:
we are still waiting to see if the refund cheque money will also need to be paid back to uc/ off set in some way,
If you were employed or self employed in the year which the refund refers to then it's classed as income and will reduce your UC.
The UC staff can access this staff guidance. You can give them the link.1 -
Icequeen1 said:sarahlply said:poppy12345 said:sarahlply said:
we are still waiting to see if the refund cheque money will also need to be paid back to uc/ off set in some way,
If you were employed or self employed in the year which the refund refers to then it's classed as income and will reduce your UC.
The UC staff can access this staff guidance. You can give them the link.
thank you for this, it’s not the net pay that’s the issue for most recent year, they can’t decide what to do about the payment for back pay refunded by cheque by HMRC, I queried why I didn’t have to pay that back as like you say and reference it’s a tax refund, apparently they don’t deal with it. Because I have a neurological disorder that’s worsening I am about to hand over to my social worker so need to tie up loose ends. Will read and send on, thank you!Life throws you curve balls and kicks you in the teeth… learning to live with weird neurological complications and spine injury and hating fall.0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 349.8K Banking & Borrowing
- 252.6K Reduce Debt & Boost Income
- 453K Spending & Discounts
- 242.8K Work, Benefits & Business
- 619.5K Mortgages, Homes & Bills
- 176.4K Life & Family
- 255.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 15.1K Coronavirus Support Boards