Joint UC account, does partner keep claim if I take pension?

TheShape

Noopin said:

Ah, I had an idea that claiming the pension would terminate my UC claim automatically.  There’s just the two of us, so our maximum UC payment was 725 (including the two other components).

My commitments at home meant that we often received that amount - indeed, there’s a disincentive to working beyond the minimum income floor each month and I’d frequently juggle the amount of work I did, and the spacing of the the invoices I submitted, to optimise the benefit.

Precisely @Spoonie_Turtle, I considered deferring for a year and was seduced by the UC payments, particularly as they’re not taxable.  Taking the pension and allowing that to use up most of the personal allowance seems the best way ahead.  It sounds as though we’ll still have the UC account and my pension will be treated as earned income.  

I really thought that my UC claim would end and my partner would continue with her own…but, if I read you right, I could in theory just reduce my income by £220pw and still receive full UC whilst taking the pension.

In other words - take pension and pay 20% tax on everything I earn OR take pension, reduce my hours to reach the MIF and receive UC as normal.
It feels as though I’ve missed something…

As I've been reading this thread, I just thought I'd ask:

You've mentioned that you often receive the maximum payment of 725 but also mention the MIF.  If the MIF was being applied, what level was the MIF set at and by how much was it reducing your UC?

You also mention reducing your income by £220pw.  Is your income normally in excess of £220pw and by how much has this been reducing your UC each month?

Noopin

I’ve just realised that I hadn’t refreshed the page before this reply and that there’s a whole page I missed.


Well, this has all been a salutary slap on the wrist, and it’s been a stitch in the nick of time.

I applied for the pension (having topped up three years’ NI a few months ago, which had the effect of raising expenses and increasing the UC payment) and received the award notice today.

The application asked if I wanted it backdated, and I received the full amount yesterday.  Now, yesterday was the day after my UC payment, which came as usual; so, by the time this is all sorted out, I expect to have to repay the UC overpayment.

Since they’re both DWP, I presumed the information from the pension claim would trigger UC to a response.  The only way I could confirm the pension claim was as a note in my UC journal.

Meanwhile, I’ll continue to report my earnings, including pension, and see what happens next.

This only came about because I chose to forget that UC was a means-tested benefit, so of course they would always expect me to be taking the pension.

Thanks to all respondents.

Noopin

@TheShape - I made my peace with, ah…manipulating the system ie.timing of invoices to control monthly income, paying tax and NI in strategic amounts, and my thinking ended up as a question of how to ensure that we received the maximum UC.  

In practice, this meant ensuring that my income for each UC month was around £1600 (net of expenses, which include lots of mileage).  I was musing on the idea of earning, say, 700pm which, with the pension, would still take me to around that mark. 

What I had to get my head around was that although the pension is taxable, it’s not actually earnings.  You can’t lump it in with a bit of earned income and still expect UC on the same terms as before the pension.

Danien

I don't know a lot about UC, but I'm surprised you can have a net income of 1600 a month and still receive it.

Spoonie_Turtle

Danien said:

I don't know a lot about UC, but I'm surprised you can have a net income of 1600 a month and still receive it.

Depends on a person's circumstances and their maximum UC award.  Lots of people can have that income or higher and still qualify, due to children/rent/disability.