How RSU affect UC

kaMelo

Okay. How exactly have DWP treated the RSU stocks, income or capital?

gtanvir

It treated the RSU as income. 

It was declared by my employer the same as salary to HMRC. They deducted the tax and NI, and whatever I was entitled to was given as stocks. 

After each assessment period, this is the message they posted in my jounrnal

"Payments reduced because of earnings

Your payments will be reduced from ** September 2024.

This is because you have received £xxxxx.xx. This has made your earnings £yyyy.yy over the amount where your Universal Credit payments stop. We call this your surplus earnings.

This means your Universal Credit payment on ** September 2024 will be £0.

We will carry forward the £yyyy.yy as earnings when we work out your future payments. They will also be reduced.

Your statement explains how we work this out."

The xx and yy amount kept on decreasing since last six months.

Yamor

gtanvir said:

It treated the RSU as income. 

It was declared by my employer the same as salary to HMRC. They deducted the tax and NI, and whatever I was entitled to was given as stocks. 

After each assessment period, this is the message they posted in my jounrnal

"Payments reduced because of earnings

Your payments will be reduced from ** September 2024.

This is because you have received £xxxxx.xx. This has made your earnings £yyyy.yy over the amount where your Universal Credit payments stop. We call this your surplus earnings.

This means your Universal Credit payment on ** September 2024 will be £0.

We will carry forward the £yyyy.yy as earnings when we work out your future payments. They will also be reduced.

Your statement explains how we work this out."

The xx and yy amount kept on decreasing since last six months.

Did you try to appeal this?

gtanvir

No I didn’t 

gtanvir

Now this is the 7th month my UC is nil. They are still carrying forward from the previous earnings

NedS

As they are treating it as income, you will have surplus earnings that will carry forward each month until they are exhausted. See here for an explanation:

https://www.turn2us.org.uk/get-support/information-for-your-situation/surplus-earnings-rule

Any surplus earnings will be added to your actual earnings. They then work out the amount of earnings required to NIL your UC claim, disregard a further £2,500 and the rest is carried forward as surplus earnings to the next AP.

If you tell us how much your surplus earnings currently are (carried forward to next AP), how much your UC entitlement before reductions is and how much you are currently paid, we can work out how long before you would next receive a UC payment.

 

gtanvir

Finally they closed my UC claim as I have got nil UC for seven months. 

They didn’t automatically did it, I had to prompt to not to leave this matter undecided. 

So, they closed the claim on a backdate and asked me to create a new claim. 

They should have done it a month ago, i.e. after six months have passed. According to the calculation, there was still some surplus remains after six months. 

Thanks all who gave time for me. Wish you all the best.