Calculating Capital for Universal Credit

ConfusedAboutIt

Hi, 

I’m just trying to work out my capital over the last 4 months for my review. 

Assessment period 23rd-22nd.

Totals in mine and partners accounts on 22nd
Account 1: 2119
Account 2: 1764
Account 3: 1708
Account 4: 1142 

Total in accounts - 6733

Our earnings from work during this assessment period was: £3863

Am I right in thinking our capital will be worked out as 

6733-3862=£2870 - Capital

Spoonie_Turtle

ConfusedAboutIt said:

Hi, 

I’m just trying to work out my capital over the last 4 months for my review. 

… 

Total in accounts - 6733

Our earnings from work during this assessment period was: £3863

Am I right in thinking our capital will be worked out as 

6733-3862=£2870 - Capital

That's how it should be worked out as but the review team don't seem to automatically do it.

Did you receive Cost of Living Payments and if so, did you spend them or did they accumulate?  If any of them accumulated then they should be disregarded and sometimes that can be a simpler way of getting them to calculate your capital to correctly be under the threshold, although they will then want statements going back further to confirm that you didn't spend them.

When you upload the statements, definitely send a message to highlight the last few payments of income during the AP (which includes benefits payments by the way, they're not capital until any that's left in the following assessment period) because money cannot be both income and capital in the same AP. 
[They already took deductions for wages as earnings so they can't also take deductions for your wages saying they're capital.]

ConfusedAboutIt

 Spoonie_Turtle said:

ConfusedAboutIt said:

Hi, 

I’m just trying to work out my capital over the last 4 months for my review. 

… 

Total in accounts - 6733

Our earnings from work during this assessment period was: £3863

Am I right in thinking our capital will be worked out as 

6733-3862=£2870 - Capital

That's how it should be worked out as but the review team don't seem to automatically do it.

Did you receive Cost of Living Payments and if so, did you spend them or did they accumulate?  If any of them accumulated then they should be disregarded and sometimes that can be a simpler way of getting them to calculate your capital to correctly be under the threshold, although they will then want statements going back further to confirm that you didn't spend them.

When you upload the statements, definitely send a message to highlight the last few payments of income during the AP (which includes benefits payments by the way, they're not capital until any that's left in the following assessment period) because money cannot be both income and capital in the same AP. 
[They already took deductions for wages as earnings so they can't also take deductions for your wages saying they're capital.]

I received cost of living payments of £900 and these were spent as I was in my overdraft at that time. 

So even in the statement period where on the 22nd I had £6733 in my account, my wages alone would take me below the £6k limit? Should I message this in the journal or just wait until the review to discuss with the UCR team

This is my first review so I’m stressing even though there’s nothing to stress about!

Spoonie_Turtle

Okay so CoL payments are irrelevant here.

Yes I'd definitely send a message to remind them that X amount was income from your wages paid on dd/mm and therefore not capital.  I haven't yet heard of them getting it right themselves (but you never know, maybe in the future!) so definitely best to point it out to them.

ConfusedAboutIt

Spoonie_Turtle said:

Okay so CoL payments are irrelevant here.

Yes I'd definitely send a message to remind them that X amount was income from your wages paid on dd/mm and therefore not capital.  I haven't yet heard of them getting it right themselves (but you never know, maybe in the future!) so definitely best to point it out to them.

Thank you for your help!! I have to reupload some statements so just waiting for them to do that then I can pop over a journal message with my calculations

ConfusedAboutIt

Hi Everyone; 

I’ve got a universal credit review coming up and wondering if anyone’s been in the same boat of going over 6k on the last day of your AP? 

I get paid on the 15th of every month and my AP is the 22nd - my rent doesn’t come out until the 12th so for a week or so it looked like I was over £6k. I was paid £3k from work in this AP too so will it be disregarded and my capital will be £3k. 

Would love to know what you’ve gone through just to give me some peace of mind while I wait for the phone call!

thank you 

ConfusedAboutIt

Rent comes out on the 1st, not the 12th 

sgthammer

I get paid on the 15th of every month and my AP is the 22nd

That doesn't sound right. Normally your assessment period would end a few days before you get paid, not a week after or three weeks before.

Your earnings from work will indeed be disregarded as capital for this AP; the bad news is they'll be assessed as income (less any work allowance you might have for caring or disability) and taxed at 55%. Your council tax benefit might also be reduced separately.

ConfusedAboutIt

Sorry, I haven’t explained myself properly. 

I get paid from work on the 15th and UC payment is the 29th! 

ConfusedAboutIt

I have got a spreadsheet that I keep which totals up how much money is in mine and my partners accounts on the 22nd minus what we’re both paid from work in that AP! This way I know we’re way under 6k! 

Just hoping the reviewer is calculating it in the same way! 

sgthammer

Ah okay, I misunderstood the timing.

Your rent comes out every month, so being over the threshold for a while during each AP won't matter as it's clear where the excess is draining off to.