Uc and savings

ste_r
ste_r Online Community Member Posts: 65 Contributor
in Universal Credit (UC)

hi all

I get full pip, and contribution esa and in support group

Also uc £420 pm which has carers and the not being able to work part


question: partner has just received 22,000 from work (from emi shares)

Tax needs to be paid, getting advice on how, and how much

About half of that amount will consolidate debts, cards loans etc, take us under the £1600 threshold

Lost uc be nearly 5k a year

Notify uc /dwp now, or after we have paid the tax and have a true amount?

Then Inform them with proof when debts paid?

Any help appreciated

Thanks

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Comments

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 5,817 Championing

    Hi,

    If you will have more than £16,000 in your accounts on the final day of any Assessment Period, then this must be declared to UC and your claim will be closed, even if you intended to spend it during the next AP.

    If you will be spending the money within one Assessment Period, and be below the threshold by the end of the AP, then personally I would wait and only declare the lower amount on the final day. This means that the claim will not be automatically closed.

    In both cases, you will almost certainly be asked to attend the local Job Centre with bank statements to prove where such a large amount has come from and where it's gone. Paying off debts is allowed for UC, but please take care not to fall foul of the Deprivation of Capital rules by giving money away or making extravagant purchases, for example. UC will be checking very carefully in a case like this.

  • ste_r
    ste_r Online Community Member Posts: 65 Contributor

    thanks

    Do you tell uc the amount you receive, or the amount after tax on the payment?


    went to local jobcentre, they basically said update uc on journal and payment part

    Thanks

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 5,817 Championing
    https://forum.scope.org.uk/discussion/comment/1114588#Comment_1114588

    Tell UC the total figure across all bank accounts on the final day of the AP.

    I don't know how tax is collected on this type of payment. If the tax is taken before you receive the payment in the account then that's ideal. If tax is taken separately at a later date then you'll have to declare the full amount until the tax is taken, if that's not during the same AP.

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