Tax credits moving to universal credit

djr2031

We are currently on tax credits but I understand from April they it is changing to Universal credit.  Do I need to to make a new application as HMRC have not sent anything to us about the change and what we need to do. Getting really concerned as we would struggle without the benefits. 

kaMelo

Everyone on tax credits will be sent a migration notice inviting them to apply for Universal Credit as part of the managed migration process. If you haven't received a migration notice yet then you do not need to do anything. The plan is that  everyone who receives tax credits will have been invited to migrate by the end of 2024.

Robbie64

Have you had a migration notice? If not then your tax credits will continue as normal until the date on the migration notice.

djr2031

Thank you,. Not had any notice yet, had assumed the transfer date would be 6th April as that seemed sensible.
Are there any articles about how the transfer will be done and how Universal credit is calculated?  Will we still get tax credits between the application for Universal credit and the award, including any appeals?  Just really concerned as tax credits, although a complete pain, make a huge difference to us.

peteuk

Once you receive your letter you are given 3 months to claim UC, if you dont want to or fail to do so then your TC will stop after the three month period. 

UC is built on your individual circumstances, there are a few UC calculators which give a good indication of what you may expect to receive.  These are only as good as the info you put into them.

When it comes to payments the day you apply becomes the start of your assessment period and this is a month.  Payment is usually 5-7 days after your assessment period.  Many have tried to work out when’s best to apply so that you dont loose out on payments, as UC is paid in arrears.  

As you are moving from TC to UC you should receive a years transitional period, so any savings or capital above £16K will be disregarded. Having more than £16K stops your UC claim.  If you have any savings or capital above £6K then your UC is reduced by £4.35 for every £250 above £6k.

djr2031

Thanks, been claiming tax credits for over 10 years and never once understood how it was calculated as various calculators gave different figures.  Receive DLA and careers allowance which seemed to change the amounts of tax credits we could receive.

atlantis187

peteuk said:

Once you receive your letter you are given 3 months to claim UC, if you dont want to or fail to do so then your TC will stop after the three month period. 

UC is built on your individual circumstances, there are a few UC calculators which give a good indication of what you may expect to receive.  These are only as good as the info you put into them.

When it comes to payments the day you apply becomes the start of your assessment period and this is a month.  Payment is usually 5-7 days after your assessment period.  Many have tried to work out when’s best to apply so that you dont loose out on payments, as UC is paid in arrears.  

As you are moving from TC to UC you should receive a years transitional period, so any savings or capital above £16K will be disregarded. Having more than £16K stops your UC claim.  If you have any savings or capital above £6K then your UC is reduced by £4.35 for every £250 above £6k.

Is the assessment date from the date you apply or your payment date?
i.e  if someone applies on the 10th or the month will their assessment period be 10th till 9th of next month of will it be the date they actually made the first payment?

peteuk

The assessment period is from the day you apply until the following day before as you have said 10 Jan - 09 Feb, with payment some 5 - 7 days later.  The second assessment period will be 10 Feb - 09 Mar.  Payment tends to be on the same date (unless a weekend or bank holiday) 

This allows the payments to be in arrears and gives them the window of opportunity to amend any possible errors.  

atlantis187

peteuk said:

The assessment period is from the day you apply until the following day before as you have said 10 Jan - 09 Feb, with payment some 5 - 7 days later.  The second assessment period will be 10 Feb - 09 Mar.  Payment tends to be on the same date (unless a weekend or bank holiday) 

This allows the payments to be in arrears and gives them the window of opportunity to amend any possible errors.  

Thanks for this mate, I asked this a couple of days ago on my own thread but didnt get an answer.
We get paid 30th of each month except Dec when its generally around 20th Dec.
Our migration deadline is 23th April if we apply 22 or 23rd April will our dates and assessments/payments be okay and we wont get stung having no UC payment in December?

poppy12345

atlantis187 said:

peteuk said:

The assessment period is from the day you apply until the following day before as you have said 10 Jan - 09 Feb, with payment some 5 - 7 days later.  The second assessment period will be 10 Feb - 09 Mar.  Payment tends to be on the same date (unless a weekend or bank holiday) 

This allows the payments to be in arrears and gives them the window of opportunity to amend any possible errors.  

Thanks for this mate, I asked this a couple of days ago on my own thread but didnt get an answer.
We get paid 30th of each month except Dec when its generally around 20th Dec.
Our migration deadline is 23th April if we apply 22 or 23rd April will our dates and assessments/payments be okay and we wont get stung having no UC payment in December?

If you apply on 22nd April then your assessment periods will be 22nd to 21st of every month. You will then receive your first payment 7 days after your assessment period ends, on 29th of every month. You will always receive your payment on the same date each month, unless it falls on a weekend or a bank holiday and then you will receive your payment on the Friday before. 

HillStreetBlues

atlantis187 said:

peteuk said:

The assessment period is from the day you apply until the following day before as you have said 10 Jan - 09 Feb, with payment some 5 - 7 days later.  The second assessment period will be 10 Feb - 09 Mar.  Payment tends to be on the same date (unless a weekend or bank holiday) 

This allows the payments to be in arrears and gives them the window of opportunity to amend any possible errors.  

Thanks for this mate, I asked this a couple of days ago on my own thread but didnt get an answer.
We get paid 30th of each month except Dec when its generally around 20th Dec.
Our migration deadline is 23th April if we apply 22 or 23rd April will our dates and assessments/payments be okay and we wont get stung having no UC payment in December?

DO NOT APPLY ON THE 22nd or 23rd.
You will end up with 2 wages in 23rd Nov- 22nd Dec and none 23rd Dec  to 22nd Jan
You need to apply 20th or early so you always get paid one wage in an AP . I would make it about the 17th to allow Dec wage ever coming earlier.