Tax refund after pension lump sum

berry61

Hi everyone,

I withdrew a lump sum from my private pension in July last year and i paid off debt with the whole amount i received, this was reported to UC and it was allowed without affect anything. I was receiving SSP at that time and now i am in receipt of new style Esa and awarded LCWRA in the support group from Sept 2024 . HMRC deducted tax from this lump sum at source which is standard policy.

I have had notification from Hmrc that the deducted tax is now due to be refunded to me in full.

I would like to ask once I claim this refund could I once again inform UC that this amount would be used to pay off my personal debt, as this is what it was meant for in the first place, or would this tax refund be classed as "other Income" for UC in that assessment period its taken.

I could prove to them via bank and credit card statements showing the amount coming in and going straight out again.

Thanks for any advice.