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Tax refunds whilst on universal credit

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I think I will be due about 600quid tax refund soon, does anybody know if this affects universal credit payments? Having looked online I cant find information on this so dont know where I stand regarding this.

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Can't answer you're question but if you are owed any money by the tax office ring them up and sort it. I recently rang them on another matter and found out they owed me over £500, and some of it was dated back years.

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I think I will be due about 600quid tax refund soon, does anybody know if this affects universal credit payments? Having looked online I cant find information on this so dont know where I stand regarding this.

 

It's a good question. I don't know the answer but judging from the information here http://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/what-is-income-for-uc/ it looks likely to be counted as earned income as it is income that is net of tax. Had you not been overtaxed in the first instance you would have had it as earned income at the time it should have been paid to you.

 

You'll need to get specialist advice to get a definitive answer. How's it going for you on UC? Lots of people are having a nightmare with it.

 

Edit: that said, if you are getting it as a lump sum it could be deemed to be capital and you can have up to £6000 of capital without your entitlement being affected. I think the question you need to ask a benefits adviser is 'Is it income or capital for UC purposes?' With the other benefits like ESA if you got a large arrears payment after your assessment this was counted as capital and disregarded for 12 months.

Edited by Bob Arctor

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