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Trust the guidance
It’s lucky that the new excess income rules are so simple. Otherwise there might be one or two DMs who get thrown by the inclusion, in a complex example in ADM11/18, of
£886.56 (total earned income) x 0.63 (taper) = £876.36
They also can’t do their sums in the self-employed losses guidance, for example:
£2,250 (combined receipts) - £1,750 (combined expenses) - £350 (combined tax & NI) = -£150.
Derek’s self-employed earnings for UC in this AP are nil
If the people responsible for telling DMs how to do the sums (and those who check the guidance) can’t get it anywhere near right .....
[ Edited: 22 Apr 2018 at 05:49 pm by Gareth Morgan ]I think they’ve been reading your post Gareth - today’s update -
26 April 2018
Revised calculations in ADM memo 11/18: Universal Credit, surplus earnings and self-employed losses on page 8 - calculation 3, page 13 - example 2 assessment period (AP) 1 and page 20 - AP2 Nos. 4 and 5. And revised chapters A4,B1,D2, D4, E1, E2, F1 to F4, G3, H4, H5, J2, J3, K3, K5, K6, L2, L3, M3 to M6, R4, S5, S7 and U2. Chapters annotated to one or more of ADM memos 7 to 11/18.
https://www.gov.uk/government/publications/advice-for-decision-making-staff-guide#history
[ Edited: 26 Apr 2018 at 01:59 pm by Daphne ]But how did John in the first example get any UC? His maximum amount £317.82 and earnings £1,500 per month and no work allowance and when I deduct 63% of £1,500 John doesn’t get any UC - so they are going to need to have another look!
He didn’t get any UC but the point that they’re trying to make, I think, is that his surplus earnings have been eroded. So if his earnings drop in the next five months to such an extent that he would be eligible for UC, then there won’t be any surplus earnings applied because they’ve already been used up. That’s how I read it anyway but I could easily be wrong…
I read that the bonus ended his UC, and if he wasn’t previously getting UC at all how could he have surplus earnings?
I think they’ve been reading your post Gareth - today’s update -
26 April 2018
Revised calculations in ADM memo 11/18: Universal Credit, surplus earnings and self-employed losses on page 8 - calculation 3, page 13 - example 2 assessment period (AP) 1 and page 20 - AP2 Nos. 4 and 5. And revised chapters A4,B1,D2, D4, E1, E2, F1 to F4, G3, H4, H5, J2, J3, K3, K5, K6, L2, L3, M3 to M6, R4, S5, S7 and U2. Chapters annotated to one or more of ADM memos 7 to 11/18.https://www.gov.uk/government/publications/advice-for-decision-making-staff-guide#history
They still have the wrong work allowances figures in there. Mind you, they probably relied on the ministers statement to the house and the initial uprating guide which also got them wrong. A lot of people still seem to be using £397/£192 (as last year) rather than £409/£198.
I read that the bonus ended his UC, and if he wasn’t previously getting UC at all how could he have surplus earnings?
No I see what you mean - he would never have been on UC anyway so surplus earnings wouldn’t apply…