Marriage Allowance Cheque Refund and Universal Credit

Tommy_77723

Hello,

We are on Universal Credit and are due to receive a cheque refund for Marriage Allowance for the past 4 years.

I understand that the current year's rebate will show on my payslip and that Universal Credit will be aware of this.

However, will they be aware when we receive our cheque refund and would this also be automatically deducted during that assessment period?

Or, because it would not be on our payslip - and in the form of a cheque - would they be unaware?

poppy12345

You need to report the refund to UC and it will affect your UC in the assessment period in which you recieved it.

Tommy_77723

poppy12345 said:

You need to report the refund to UC and it will affect your UC in the assessment period in which you recieved it.

But will they automatically know about it?

I've had savings over £6000, very briefly, in the past and they didn't know about this either.

How would they know about the tax refund via cheque?

poppy12345

They maybe informed by HMRC because they share information with them but they may not be. It's your responsibility to report the refund you received. You can't just hide it from them.

The same applies to any savings you have over than lower limit, it's your responsibility to report the changes. UC will not automtically know what savings you have at any one time.

peteuk

Tommy_77723 said:

poppy12345 said:

You need to report the refund to UC and it will affect your UC in the assessment period in which you recieved it.

But will they automatically know about it?

I've had savings over £6000, very briefly, in the past and they didn't know about this either.

How would they know about the tax refund via cheque?

My very basic understanding of UC is that is paid in arrears and is based on your monthly salary (eg that reporting period). So if you work over time then your UC goes down, so if the tax return shows on your wage slip then I would say it’s safe to say it will be noted.  However it would not harm to advise them of it and what it is for,

NedS

poppy12345 said:

You need to report the refund to UC and it will affect your UC in the assessment period in which you recieved it.

Correct. UC will not be automatically notified of it through the usual route (RTI) as it has not been paid through the PAYE system, but you MUST report it in the assessment period in which it is received as it will affect your UC entitlement in that assessment period.

Tommy_77723 said:

poppy12345 said:

You need to report the refund to UC and it will affect your UC in the assessment period in which you recieved it.

How would they know about the tax refund via cheque?

If you fail to report it, DWP will find out eventually. HMRC and DWP share data and it will get flagged up on a scan at the end of the financial year. That will result in an investigation if the earnings you have declared for UC do not match HMRC's records. At a minimum you will incur a civil penalty of £50 for failure to report a change affecting your UC on time, or worse face prosecution and a much larger court fine (plus costs etc) when found guilty of benefit fraud.

Tommy_77723

NedS said:

poppy12345 said:

You need to report the refund to UC and it will affect your UC in the assessment period in which you recieved it.

Correct. UC will not be automatically notified of it through the usual route (RTI) as it has not been paid through the PAYE system, but you MUST report it in the assessment period in which it is received as it will affect your UC entitlement in that assessment period.

Tommy_77723 said:

poppy12345 said:

You need to report the refund to UC and it will affect your UC in the assessment period in which you recieved it.

How would they know about the tax refund via cheque?

If you fail to report it, DWP will find out eventually. HMRC and DWP share data and it will get flagged up on a scan at the end of the financial year. That will result in an investigation if the earnings you have declared for UC do not match HMRC's records. At a minimum you will incur a civil penalty of £50 for failure to report a change affecting your UC on time, or worse face prosecution and a much larger court fine (plus costs etc) when found guilty of benefit fraud.

I was told today by Citizens Advice that they wouldn't need to do anything about the 4 year refund part? And that HMRC wouldn't share that information anyway at the end of the tax year because it wouldn't be showing as over/underpaid? Now I don't know what to think lol.

Dazed_and_C0nfused

Tommy_77723 said:

NedS said:

poppy12345 said:

You need to report the refund to UC and it will affect your UC in the assessment period in which you recieved it.

Correct. UC will not be automatically notified of it through the usual route (RTI) as it has not been paid through the PAYE system, but you MUST report it in the assessment period in which it is received as it will affect your UC entitlement in that assessment period.

Tommy_77723 said:

poppy12345 said:

You need to report the refund to UC and it will affect your UC in the assessment period in which you recieved it.

How would they know about the tax refund via cheque?

If you fail to report it, DWP will find out eventually. HMRC and DWP share data and it will get flagged up on a scan at the end of the financial year. That will result in an investigation if the earnings you have declared for UC do not match HMRC's records. At a minimum you will incur a civil penalty of £50 for failure to report a change affecting your UC on time, or worse face prosecution and a much larger court fine (plus costs etc) when found guilty of benefit fraud.

I was told today by Citizens Advice that they wouldn't need to do anything about the 4 year refund part? And that HMRC wouldn't share that information anyway at the end of the tax year because it wouldn't be showing as over/underpaid? Now I don't know what to think lol.

If you read the notes that accompanied your P800 calculation you will see that they specifically state you should notify DWP of any income tax refund.

sheramber

Who is ‘they’?

HMRC do share information with DWP. 

Just because CAB tell you what you want to hear , don’t believe what they say. 

If you want confirmation then report it and see if DWP tell you it doesn’t get counted. 

poppy12345

Tommy_77723 said:

NedS said:

poppy12345 said:

You need to report the refund to UC and it will affect your UC in the assessment period in which you recieved it.

Correct. UC will not be automatically notified of it through the usual route (RTI) as it has not been paid through the PAYE system, but you MUST report it in the assessment period in which it is received as it will affect your UC entitlement in that assessment period.

Tommy_77723 said:

poppy12345 said:

You need to report the refund to UC and it will affect your UC in the assessment period in which you recieved it.

How would they know about the tax refund via cheque?

If you fail to report it, DWP will find out eventually. HMRC and DWP share data and it will get flagged up on a scan at the end of the financial year. That will result in an investigation if the earnings you have declared for UC do not match HMRC's records. At a minimum you will incur a civil penalty of £50 for failure to report a change affecting your UC on time, or worse face prosecution and a much larger court fine (plus costs etc) when found guilty of benefit fraud.

I was told today by Citizens Advice that they wouldn't need to do anything about the 4 year refund part? And that HMRC wouldn't share that information anyway at the end of the tax year because it wouldn't be showing as over/underpaid? Now I don't know what to think lol.

That's totally incorrect. There's nothing really to think about.  As has been advised, you need to report the refund because it affects the amount of UC you're entitled to in the assessment period you receive it.

I don't understand why you went to CA because you already had the correct advice here.