Child Tax Credit Refunds - Do I report?

robbo2000
robbo2000 Online Community Member Posts: 31 Contributor
edited December 8 in Universal Credit (UC)

We got a letter out of the blue last week telling us that we were owed nearly £200 from underpaid child tax credits back in 2012.

We are due to receive this refund into our bank account within the next 60 days.

Due to ill health, we have been on universal credit for the last 12 months.

My question is, do we need to report this amount as salary, savings or neither?

My current thoughts are that we just add it to our savings. (or spend it on a new oven that’s broken)

We should’ve had it 13 years ago, so it seems unfair that we should be penalised in any way for having the money now.
(I wonder how much interest I would have earned on that money in 13 years?!!)

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Comments

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 5,409 Championing

    Hi,

    This counts as arrears of benefit. So it is classed as capital, but disregarded for 12 months.

    If you still have over £6000 in savings then you should continue to declare your total savings to UC in the online portal. Then put £200 in the 'disregards' section, under the arrears of benefit heading. Remember to stop disregarding it in exactly 12 months time from the date of the payment.

    Honestly though, with a reasonably small amount, it may not be worth the hassle. You could just buy that new oven and forget about the disregard altogether.

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