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  • FIRST POST
    • Beaneywatts
    • By Beaneywatts 11th Mar 18, 8:46 AM
    • 9Posts
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    Beaneywatts
    Universal credit replacing tax credits
    • #1
    • 11th Mar 18, 8:46 AM
    Universal credit replacing tax credits 11th Mar 18 at 8:46 AM
    Hello everyone,

    I am currently looking to buy my first house and the mortgage adviser at the bank is looking into the affordability and asking how much working and child tax credits I receive - however, universal credit doesnít list these individually anymore.

    The adviser wants to know which elements of UC are the replacements for working and child tax credits, but the internet doesnít seem to actually define this and the person at UC who I asked was no help at all.

    It would make sense to me that the child element replaced child tax credits, the housing element replaced housing benefit, the carers element replaced carers allowance etc (Iím not in receipt of all of the above by the way!), but the standard element is a mystery to me as to what benefit this really replaces.

    I thought maybe someone on here may have been through similar and Iíd be interested to know how their mortgage adviser eventually considered the elements, whether they included them or not etc.

    Any experience or knowledge will be gratefully received,

    Thank you!
Page 1
    • huckster
    • By huckster 11th Mar 18, 9:05 AM
    • 3,144 Posts
    • 1,338 Thanks
    huckster
    • #2
    • 11th Mar 18, 9:05 AM
    • #2
    • 11th Mar 18, 9:05 AM
    Standard element is just the JSA/ESA basic rate equivalent.

    In regarding to working tax credit equivalent on UC, for each £1 you earn, you lose 63 pence of the standard element. This is just an earnings taper.

    If you mess around on a benefits calculator such as Entitledto or Turn2us, you can see how earnings affect the benefit amount you receive. If you enter information as accurately as you can, you can print off an estimate of your likely benefit amount.

    Be aware that the budget is this week and benefit rates/rules might well change soon anyway.

    https://www.entitledto.co.uk/help/Earnings-taper-Universal-Credit
    Last edited by huckster; 11-03-2018 at 9:28 AM. Reason: Correction
    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.
    • pmlindyloo
    • By pmlindyloo 11th Mar 18, 10:54 AM
    • 11,475 Posts
    • 13,369 Thanks
    pmlindyloo
    • #3
    • 11th Mar 18, 10:54 AM
    • #3
    • 11th Mar 18, 10:54 AM
    Standard element is just the JSA/ESA basic rate equivalent.

    In regarding to working tax credit equivalent on UC, for each £1 you earn, you lose 63 pence of the standard element. This is just an earnings taper.

    If you mess around on a benefits calculator such as Entitledto or Turn2us, you can see how earnings affect the benefit amount you receive. If you enter information as accurately as you can, you can print off an estimate of your likely benefit amount.

    Be aware that the budget is this week and benefit rates/rules might well change soon anyway.

    https://www.entitledto.co.uk/help/Earnings-taper-Universal-Credit
    Originally posted by huckster
    I don't think this is quite right. The standard element applies to everyone.

    If you put your details into this calculator it gives a breakdown of your UC award.

    https://www.moneysavingexpert.com/family/benefits-check

    If you are only claiming the tax credits part then you should be able to deduct anything that isn't relevant (e.g carer's element/housing element. )

    So, include the child element (and anything related child disability/child care costs) plus then remaining sum which should equate to the working tax credits.

    Come back when you have the breakdown and tell us what it is, if you need further help.
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