Migration from tax credits to universal credit.
Comments
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This is related to the benefit cap and the 9 month grace period. It's usually the previous 12 months earnings they ask for. See link. https://www.gov.uk/benefit-cap/how-earnings-affect-when-benefit-cap-starts#:~:text=The%20benefit%20cap%20might%20not,or%20your%20earnings%20went%20down
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Ahhh. Thankyou.
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Hello
A further question re the figures re my income over the last thirteen months I have sent UC as they were asking for them. I have sent them net figures of my earnings. What I have not included is payments into my private personal pension over this period. Do I need to include this as part of my earnings as when calculating my earnings under WTC they would reduce private pension payments I made into pension when doing their calculations. If I do this for UC I will come up with a different figure to just calculating net earnings over thirteen months they are requesting.
The pension WTC saw as unearned income was my dependents pension and that would affect benefits
Thank you for any clarification
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It’s net earnings figure they want. If your PIP includes the daily living part you will be excluded from the benefit cap anyway. Although you still need to provide the figures.
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Pip included the daily living part, but it is not enhanced, it is the mobility part that is enhanced. Hopefully that still counts
Thank you once again for help
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Actually it’s any PIP award that excludes you, not just the daily living part. See link https://www.gov.uk/benefit-cap/when-youre-not-affected
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Hello
A further question re protecting transitional protection please. Understand that paying into private pension will protect transitional protection.
Being self employed companies pay me at end of work, so it can be feast and famine re money. This month I will earn little, not enough to pay anything into a pension. My expenses might be higher than my earnings. How will this affect transitional protection? I do have enough monies to pay some of my tax this month. Is paying tax in a month when I am earning little a good idea or will it harm my transitional protection if it is counted as an expense.
Thank you for clarifying this
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Any loses will be carried forward to your next assessment period. I'm no expect on this so can't give any further advice here, sorry.
Your TP would end if you have 3 assessment periods where your UC is reduced to zero through earnings. It won't stop if you earn less.
Did you report your dependants pension to them?
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Hello
First month where UC is reduced to zero. Waiting on payments from companies as self employed. Do self employed people need to chase for payments so that it ties in with UC four week assessments. If I score zero for three consecutive I will no longer receive any payments ( is that correct). I was put into a negative amount which was very high, told it would be carried over to the next period. Not sure what made it so high. Two things come to mind
1)I receive a dependents pension each month - will they be calculating that off UC payments
2)I paid £800 income tax this period - will that have played a part.
Thank you for any clarification
Jane
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UC is based on earnings received each assessment period. The more earnings you receive the less UC you're entitled to. Yes, if your UC is reduced to zero for 3 assessment periods then your TP will end.
What's happened with you is called surplus earnings and this can happen even if you make a loss when self employed. Surplus earnings rules are very complicated.
Your dependents pension will reduce your UC £1 for £1 as I advised previously in the thread.
Yes paying £800 could have contributed to surplus earnings if your loss was large but as I advised it's complicated. There's some information here. Please have a read.
It may also be worth while speaking to an advice agency about your self employed earnings and UC and they will give you all the advice you need.
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Thank you Poppy and for link which I will study more. It's tricky being self employed and claiming universal credit. It was much simpler under tax credits when you submitted tax returns once a year as tax credits had the flexibility for the "waiting time to be paid" whereas universal credit does not.
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Hello Poppy
Re Universal Credit
It looks like paying £800 income tax in a month where I earned little put me into negative of £-799 on Universal credit. Have been told this negative of £-799 will be carried over to next period. Does that mean I cannot pay any money into private pension until I have earned £799 and more, after expenses.
Do you know what why people get scored "0" on universal credit. Have not got a reply for DWP yet, though am in contact with them. Am wanting to be pro-active so this does not get repeated
Thank you
Jane
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You don’t “score zero” it’s known as reducing your UC to zero. This happens when your earnings Or other income such as pensions reduce it to zero.
I’m sorry but I don’t know about the pension. Please get some expert advice from an agency near you for that. As well as some advice about self employed losses being carried forward because that’s complicated.0 -
Thank you Poppy.
Clearer now on whar "0" means. I will put a further note on my portal in UC.
Are there any particular question I need to be asking re self employed losses being carried forward, or just asking how they affect next assessment.
Just to clarify, that it is receiving a pension, not paying into a pension that can reduce UC to zero. I am assuming I need to be in the positive with earnings, even though it is paying my tax that has put me in the negative in order to pay into pension.
Thank you for help
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Yes just ask about losses being carried forward. Please do not put a note on your journal asking that question because a lot of work coaches often give incorrect advice. They are not benefits advisors. You need expert advice from an advice agency for this.
Receiving a pension (I know you receive a dependents pension) can reduce your UC to zero because it’s treated as other income and reduces it £1 for £1. For example if your pension is £100/month then your UC will reduce by the same amount. I did advise you about that in a previous thread.
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I agree about the expert advice Poppy. You have been very helpful. My son has just been helpful too. He works in pensions. Currently in negative of £-799.00. Son thinks this caused by me paying income tax bill of £800.00 last month which I did not realise would be counted. Son thinks I need to earn at least £799, then earn expenses , pay no tax, nor monies into pension. That seems to make sense. I spent at least five hours last week trying to talk to agencies like CAB, Money Wise, contacted DWP, putting information on portal. Still not fully clear on how to avoid ending up at "0" again as I will be thrown off UC if that happens.
I think another question I need to put on portal is how much money can I earn as well as dependents pension before I am scored at zero or put into the negative. Do not want to earn too much either
Further thoughts. Is it worth me going through the WCA. I think I am still in time to do so. Am I right in thinking there is a three month time limit. Would it put less demands on me. I would do it because of my epilepsy which is getting affected due to the stress of this, and time needed to recover. Recently had epileptic fall. Also time needed to go to hospital appointments. All take time away from work. I adjust my work to suit my epilepsy management. I would score 15 points on the planning and following a journey element to it and other elements. How many points do I need to be put into a group. Any advice on this would be helpful. Would it be my work coach I speak with or Case Manager. Not sure what the difference is. And I was reading this morning I would need a fit note. g.p. practice knows about recent seizure, as does local walk in centre, as does neurologist I saw recently. Not signed off for a week though. Never have been. Do you need to be signed off for a week with a fit note to go via WCA?
Thank you for help
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Thank you. Losses being carried forward doesn't mean a bad thing. There's a big difference to working with pensions and having knowledge with that to understanding UC because they are 2 completely different things.
I'm no expert, although I have good benefits knowledge. UC and self employed is complicated, which Is why I advised getting some expert advice.
Please stop putting messages on your journal with questions like that because work coaches aren't the most reliable source of information and have been known to give some shocking advice. Same applies when you ring the UC helpline, they are not benefits advisors.
How much you can earn before your UC reduces to zero will depend on what your maximum UC entitlement is before those deductions. Earnings reduce it by 55%. Pension income reduces UC £1 for £1 as I previously explained. I would need more information before I can advise with that. I would need to know what your maximum UC entitlement is, and how much pension you receive each week or month. You can use a benefits calculator and put different figures in and it will tell you.
For the WCA I did advise you on that in a previous thread. You will need to report a change of circumstances and then click "health conditions" and report it through that. You will then need to provide a fit note within 7 days and provide details of that fit note on your journal by clicking "report a fit note" You do not need to be signed off for 7 days before reporting a health condition. You need to continue to provide fit notes without any gaps until a decision is made on your WCA.
Usually from day 29 after providing a fit note you will be referred for a WCA. You'll receive a letter on your journal once you've been referred telling you that they have done this. A few days later you will receive the UC50 form in the post. You will need to make sure you fill that in and return it with all your supporting evidence. You'll most likely need an assessment because most people have them.
If found to have LCWRA there's a full 3 months assessment period waiting time for the extra money and it's then paid from the 4th month after you provided your first fit note.
If found to have LCW there's no extra money each month.
If the decision is either LCW or LCWRA then you will also have the work allowance, which means you can receive a certain amount of earnings each month before deductions apply. (please note that your pension is not treated as earnings so will excluded from the work allowance) If you claim for help with the rent your WA will be £404/month, if you don't then it will be £673/month.
Sometimes the decision will take longer than 3 months, it depends on how long the backlogs are in your area.
You can see the descriptors here for LCW and for this you need to score at least 15 points.
For LCWRA it's not about scoring points, you need to meet at least one of the descriptors.
There's also some information about UC with a health condition here.
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Hello Poppy
Looking at my first universal credit payment of 19th June I get a standard amount each month as single of £393.45
Then Transitional protection, because of other benefits I was on before moving to universal credit is £1,193.66
Total entitlement before deductions £1,587.11
What we take (deductions) £-844.93 That is monthly dependents pension I receive
Then Money savings and investments they take off £-174.00
Total deductions £1,018.93
Payment for the month £568.18
Can you explain going forward each month how I need to do my accounting to stay on universal credit please. What do I need to do now that I am in the negative of £-799.00. Do I need to earn that amount plus my expenses next month.Why is being in the minus not a bad thing?
Going forward, now I realise paying tax is an expense, as universal credit is a net payment, if for example I were to earn £1,000 one month after expenses, is most sensible action to put it into pensions.
Thank you for help
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With your UC being £568.18/month then your maximum earnings will be about £1,030/month before your UC is reduced to zero.
With regards to your other questions I'm afraid I do not know. It's complicated and beyond my knowledge. I keep advising you to please get some expert advice from an agency near you. This link will help you find an advice agency local to you.
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That is very helpful to know those figures Poppy Thankyou. That is exactly what I needed to know i.e. what my maximum earnings can be each month before UC is reduced to Zero.
I will see if I can find a benefits advisor with more knowledge at CAB - not my local CAB
Once again thank you for your help.
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