Payment

emj9998

Good evening. My husband has a small tax refund due from his last works payment. HRMC have said they will pay this with his military pension. Universal credit deduct the whole amount of pension from our payment so will the whole amount of the tax refund be deducted/ counted as pension despite it being earnings? Thank you in advance 

Emilee

Tax refunds are usually treated as employed earnings.

Even though the tax refund is being paid alongside your husband’s military pension, HMRC’s reporting of this through the RTI (Real Time Information) feed should reflect the correct information. This ensures that Universal Credit can distinguish the tax refund from the pension income and not deduct the full amount.

If Universal Credit does end up deducting the entire amount (including the refund), you should be able to raise a dispute and have the situation reviewed.

emj9998

Many thanks Emilee, greatly appreciated