Final tax credit award for period end 7 March 2024 as move to uc

Hi, hoping someone can kindly advise.
I applied for UC on 8th March following the migration from tax credits letter. 
At work I was successful in a temporary promotion which was backdated to 1 February with approx £10k per year increase in wage & paid at the end of each month. However I was not paid for this at the end of February but at the end of March so included 2mths additional pay. (I have informed UC as imagine I will not be eligible this month now).
The query is that I have just received tax credits award review confirming my income from my employer on 12 March as £20k. I think this has pulled from the hmrc interface, however I do not think this figure includes my pay rise? As on checking my year end taxable pay it totals £24000. The tax credits figure from 6/4/23 to 7/3/24 should not be higher than £22k and if so I need to contact them. Do I need to let tax credits know (even though they have the figure from hmrc on 12 March) as this additional pay will be taken into account on my uc payment? Hope this makes sense. I just want to do right thing and not sure what it is for tax creds when my first uc payment will take into account the additional money backdated to 1stFeb. 
Thanks in advance 😀

Comments

  • peteuk
    peteuk Posts: 1,938 Forumite
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    UC works on your monthly income, so as you started your claim on 08 March, your assessment period will be 08 - 07 of each month, with your payment being 5-7 days after the 7th of the month.  

    Your first assessment period will be 08 March till 07 April.  What ever you are due will be reduced by 55p per every pound your paid, so if you get the back pay in March then this is likely to zero your claim for that month.  If your wage is so high that it zeros your claim for 6 months then the claim will end.  


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  • poppy12345
    poppy12345 Posts: 18,878 Forumite
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    peteuk said:

     What ever you are due will be reduced by 55p per every pound your paid, so if you get the back pay in March then this is likely to zero your claim for that month.  If your wage is so high that it zeros your claim for 6 months then the claim will end.  


    Unless they are entitled to the work allowance and then there will be an earnings disregard before the deductions apply. See link https://www.entitledto.co.uk/help/work-allowance-universal-credit

     However I was not paid for this at the end of February but at the end of March so included 2mths additional pay. (I have informed UC as imagine I will not be eligible this month now).

    A moot point now because you've already claimed but for others that maybe reading this.. Depending on what date you had to claim UC by, could you have claimed after you received your March earnings? If so then those earnings would not have affected your first payment. 
  • Yolo40oops
    Yolo40oops Posts: 10 Forumite
    First Post
    Thank you for your information. My initial pay is a lot higher (as backdated 2 months) but thereafter will not be -does that mean I may not get anything for 6 months? I know I would be eligible on my new monthly earnings on the benefits calculator.
    Not sure if you know but main issue was the tax credit award for the year end to 7th March. If it’s pulled the earnings figure from the hmrc interface does that mean I do not need to worry? It’s just that the figure pulled through on 12 March did not look like it included my new pay and worried I may end up in an overpayment situation with tc. 
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