Universal Credit Undeclared Tax Rebate

kizzywizzy6

I’m so worried.  We claim universal credit and have been asked for a review.  I’ve just been looking over our 4 months bank statements and noticed that my husband had a tax rebate of just over £2,000 in September which we forgot to declare.  He doesn’t work as he is my carer.  I have been really struggling with my health and I honestly thought that you didn’t have to report anything unless it was over £6,000.  I’ve made a bad mistake but it wasn’t intentional.  We will obviously have been overpaid in that month and know we will have to pay it back.  My question is will we get in serious trouble because of this and how would you go forward.  I’m worried sick that we will be prosecuted.  Thanks

Yamor

What was the tax rebate for? Was it for a previous year when he was working?

kizzywizzy6

Yes he worked until December 2024.  Got a new job beginning of March 2025 but had to leave in June to care for me so hasn’t worked since June this year

Yamor

Ok, then it is true that it should have been declared as earned income in the AP in which it was received. It'll mean you've been overpaid by about £1,100 (unless your award that month wasn't as high as that).

First, please please calm down! The chances of prosecution are nil, and even a civil penalty (which would be £50) is exceedingly unlikely.

Next, you should tell them about it now on your journal, and they will simply recover it from your ongoing award.

kizzywizzy6

Can they put my monthly payments on hold while they sort it out?  If so I won’t be able to pay my rent if I don’t have any universal credit payments as my husband can’t work as he is my carer.  I’m so worried thanks

Spoonie_Turtle

kizzywizzy6 said:

Can they put my monthly payments on hold while they sort it out?  If so I won’t be able to pay my rent if I don’t have any universal credit payments as my husband can’t work as he is my carer.  I’m so worried thanks

They *could* but they almost certainly won't - it's a single mistake and very simple to rectify, not a complex web of e.g. undeclared savings accounts and crypto and premium bonds with varying amounts going back years needing to be untangled. 

So it's EXTREMELY unlikely they would suspend your payments.  There is absolutely no need or justification for them to do that.

huckster

Most likely they will create a to do action for completion, so the income can be reported. And once reported an overpayment will be created. Which will be registered and taken as a small deduction from future benefit payments.