Tax refund and universal credit
Punmanuk
Posts: 179 Forumite
I am in uc. Getting personal allowance and housing elements. Not working atm. I got a tax rebate. Will it effect how much I get this month?
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Comments
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I don!!!8217;t think that it would.0
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If it is reported through HMRC and UC pick this up through their data feed to HMRC it might be considered as earnings.
When you were taxed too much, they took away from earnings that you should have had at the time. When you later receive the tax rebate, it is counted as earnings when you get paid the amount.
Remember UC takes into account earnings when they are actually received and not when you worked the hours.The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.0 -
So how much will they deduct?0
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If you have no work allowance due to children or Limited Capability for Work, then the deduction will be 63 pence for each £1 shown as earned.The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.0
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Well I am not working at the min..I am looking for work..so I get personal allowance and housing allowance..so will it still be 63p for every pond?0
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Tax rebate counts as late paid earnings, so it should be reported and the 63p deduction from each £1 of UC should be applied.
It is a bit harsh, but the tax rebate is considered as earnings. You might be unemployed now, but it is still money you are being paid now.
If it not showing on the UC statement for the relevant period, you should report it, as if you don't you might be contacted about this non disclosure. In theory HMRC should record it and UC should be informed, but it might not happen.The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.0 -
Tax rebate counts as late paid earnings, so it should be reported and the 63p deduction from each £1 of UC should be applied.
It is a bit harsh, but the tax rebate is considered as earnings. You might be unemployed now, but it is still money you are being paid now.
If it not showing on the UC statement for the relevant period, you should report it, as if you don't you might be contacted about this non disclosure. In theory HMRC should record it and UC should be informed, but it might not happen.
Tax refunds don't always count as income for UC it depends on what period the refund relates to and whether the person was in 'paid work' (as defined for UC purposes) in that period. If they were it counts, if they were not it doesn't.
Also, HMRC shouldn't record it in theory. The only data UC get sent is RTI data the source of which is employers so normal refunds from the HMRC reconciliation process don't come through to UC as a matter of course.
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What do u mean as paid work? The tax rebate was for last year..I got rebate for last year..I lost my job in July and in nov last year applied for uc..never been on any benefits before0
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What they mean is that you were being employed by a company, paid as an employee, when this overpayment of tax occurred. If you then received the tax rebate later, within a Universal Credit claim period, you then disclose it as income.
If however, you were self employed that is a different story.
You raised the question here today, so it means you were aware it might affect your UC claim. If the tax rebate income is not recorded on the UC statement, because UC don't receive tax rebate data from HMRC, then technically you should contact UC to report this. Provide all of the information and let UC consider whether they need to apply a deduction.The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.0 -
I’ve had an HMRC refund from employed erarnings and overpaid tax - the period is 2017/18.
I’ve been self employed since jan 18 ... will this amount be taken off my self employed universal credit ?0
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