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Universal credit taxable or not?


charles34c
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I have been trying to find out if Universal Credit is classed as a taxable benefit. The two main government bodies contradict each other.

 

UK Govt. as per below link advice UC is NOT Taxable

 

https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

 

Whilst following link from HMRC states the complete opposite.

 

 

https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/PersonalTax_iForms/1.0/P50&template=P50.xdp

 

 

Any advice would be appreciated and I need to claim a tax rebate but form asks which taxable benefits I have received. I was under impression that UC was NOT taxable but HMRC say it is in contradiction to most other public resource information.

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I would have expected the unemployment portion of UC to be classed as taxable income whilst the HB component is non-taxable.

 

The whole Universal Credit scheme is a mess. In principle, a good idea, in implementation, a dog's dinner.

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https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

 

Have a look at the above link, it appears UC is a tax free state benefit

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I am not legally trained or qualified, any advice i offer is gleaned from experience and general knowledge, if you are still unsure after receiving advice please seek legal advice.

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https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

 

Have a look at the above link, it appears UC is a tax free state benefit

 

Thanks for the reply. Yes I know that link as per my first post states that UC is a tax free benefit.

 

However HMRC state the complete opposite in their link:

 

https://public-online.hmrc.gov.uk/lc...mplate=P50.xdp

 

My problem is that HMRC state the JOB Centre will issue my tax rebate due, because I am now on UC - having been made redundant. However the JOB Centre state HMRC will issue it because UC is not taxable. It is bonkers. Cannot be that an unusual circumstance I am in.

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Hello Charlie,

 

I am sorry I cannot help but just wanted to say it seems you are having the same problem as me.

 

I lost my job in the middle of last year. (I am due a tax rebate/refund according to the calculator on the HMRC website.)

 

I contacted the HMRC Helpline - They said I must give part 1 and part 2 of my P45 to the DWP

 

I contacted the DWP - They refused to take the Pt 1 and Pt 2 of my P45 and instead told me I must contact the HMRC because UC is not classed as a taxable benefit.

 

So I am going round in circles. The HMRC software does not mention UC as an option.

 

The links you mention just confirm the absolute chaos those on UC are facing.

 

I hope someone working at the HMRC or DWP read this post and note how the information displayed on their respective sites says the total opposite as you rightly point out.

 

Keep smiling.

 

Lucy

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I hope someone working at the HMRC or DWP read this post and note how the information displayed on their respective sites says the total opposite as you rightly point out.

 

 

Hello :)

 

I will check the guidance when I'm back at work tomorrow. As to the contradictory information on the website, well, I can report that but who knows if anyone will pay any attention to me.

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As to the contradictory information on the website, well, I can report that but who knows if anyone will pay any attention to me.

 

Perhaps the OP would like to pose the question to his MP. The right ear in Whitehall might just get a flea in it (one can live in hope).

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Perhaps the OP would like to pose the question to his MP. The right ear in Whitehall might just get a flea in it (one can live in hope).

 

Well, quite. I mean, we just have to deal with the confused people. Why should our opinion count? :)

 

Seriously, though, I agree. Send complaints about the website to MPs. That's what they're for.

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The idea that all politicians lie is music to the ears of the most egregious liars.

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