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Tax rebate and uc

I’ve been claiming uc for 3 months very soon to be 4 ( due to illness ), I submitted my tax rebate 2 weeks ago, which is only for the time I was working obviously. What will happen to my rebate or uc payments? I’ve been told they will take 63p to every pound I earn whilst sick? Does this mean they will take my rebate off me or lower my uc payments? 

Comments

  • NedS
    NedS Posts: 5,286 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 27 April 2023 at 3:39PM
    Your tax rebate will be treated as income for UC and will reduce your UC by 55p in the pound (not 63p)
    If you receive the rebate through your pay packet from your employer then UC should automatically be notified of this and the deduction will happen automatically.
    If however you receive a cheque or bank payment directly from HMRC, you will need to declare it to UC in the Assessment Period in which you receive it.

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