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Forum Home  →  Discussion  →  Universal credit migration  →  Thread

tax credits ‘overlapping benefit’

 

Tara CAC
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Children's Centre Project: Citizens Advice Cornwall

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Total Posts: 26

Joined: 8 August 2018

A thought came to me yesterday as I was explaining to someone why UC can deduct tax credits payments received for a period during their assessment period (overpayment of existing benefit for example due to delay in tax credits claim ending) - otherwise they’d be paid twice for that period.

When tax credits do an in-year finalisation - eligible award vs amounts actually paid = under/over payment

If UC deduct for example £100 for tax credits received after UC claim do HMRC deduct this amount from amounts paid to the claimant?

eg eligible award for 06/04/19 - 01/10/19 - (payments made - £100) = under/overpayment

I haven’t seen an award letter from someone who has had this type of £ for £ deduction (opposed to overpayment recovery). If not it would be deducted twice by UC - once as an overlapping benefit and once as a debt

     
Charles
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Accountant, Haffner Hoff Ltd, Manchester

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Tax credits are specifically excluded from the rule that legacy benefits can be counted as unearned income. See Reg 10 of the UC(TP) Regs.

     
Tara CAC
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Children's Centre Project: Citizens Advice Cornwall

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Total Posts: 26

Joined: 8 August 2018

It has come under ‘other benefits you were receiving when your claim started’

I’ll see if I can find a screenshot of it

     
Charles
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Accountant, Haffner Hoff Ltd, Manchester

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Total Posts: 270

Joined: 27 February 2019

Interesting. I would like to see that. They definitely only have a power to recover from UC as an overpayment, and it can only be done after finalisation of the tax credit award.