Universal credit
Good afternoon.
I sincerely apologise for posting again but my husband received a tax refund with his pension yesterday so I have the full amount. I have been housebound for 15 years so my anxiety is constant hence the need to get things right.
On October 24th my husband received a final work payment of £4,197.23 after Deductions. Our Universal credit payment for the 14th November was quite rightly nothing.
Our next payment will be on 14th December. My husband has just received a bank payment for a tax refund of £1377.84 because he paid too much income tax on his final payment last month.He receives a monthly military pension of £299.18 which is deducted from our universal credit each month. The amount of £1,377.84 is a combination of his military pension and the income tax refund.
Could anyone kindly advise me of the following please.
Would my husbands final work payment affect December' Universal credit payment ?
Will Universal credit take the whole amount of £1377.84 income tax refund as pension because it's been paid with his pension despite it being earnings?
Our last assessment period was 8 October to 7 November. We get our Universal credit payment on the 14th monthly and are entitled to the following
£617.60 Standard allowance
£429.35 housing
£198.31 carer
£416.19 Lwcra
We are deducted £299.18 each month pension.
I will post screenshots in comments
I will be so grateful to anyone who can work this out for me. Thanks in advance
Comments
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The final work payment will not affect December's Universal Credit payment, as it is less than the surplus earnings limit for your claim. Therefore, it will not impact any future payments.
The tax refund should be treated as earned income in the next Universal Credit assessment. The usual work allowance and the wage taper should apply and the £299 for his pension should be deducted as usual.
If possible, I would suggest trying to account for them making a mistake in this with your budget, as errors like this are frequently sent to decision makers.
For more details, refer to the "types of earnings" section in the ADM (Adjudication and Decision Making guidance), which explains how tax refunds should be treated.
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Edited - See above
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Hi overly I am unable to see your comment for some reason but thank you
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No problem, I deleted my comment as the advice from Emilee was better than mine and I didn't want to cause confusion. 🙂
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Thank you again Emilee. If they take the whole amount as pension does that mean we won't get any universal credit in December?
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If they deduct the entire amount of 1377.84 in full (which you said is the military pension AND the tax refund), you would receive around £280 Universal Credit.
This is because your UC before deductions is £1661.45 and with a deduction of £1377.84, would leave a payment amount of £283.61
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No need to do that, I would have been interested to see what you wrote. Your comments are always insightful. 🙂
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Thank you. I was out of my depth on this one though, and calculated it as if the tax refund had been split from the pension (55% deduction above work allowance). I hadn't heard of those being paid with a pension payment before.
It is a shame this forum doesn't have a pop-up that occurs when someone else makes a post on a thread that we're replying to. I have been on other forums where that is a feature and it means we don't double up on the same information, don't contradict each other, and can also see if the original poster has added more information than was in their first post.
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Thank you so much again. I have been housebound for 15 years with a severe anxiety disorder, my husband worked full time up until April this year when my physical health needs took a turn for the worse. You never know what is around the corner and I am so grateful to people like you who spend their own time and knowledge helping people like me despite no doubt having their own difficulties.
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It's very confusing bit I am very grateful you were kind enough to take time to help. I love your "name" it describes me perfectly
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