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Universal credit question - fluctuations in income

5 replies

RenegadeKeeblerElf · 11/12/2022 16:01

Currently DH and I both work full time, me on a fairly decent salary and him on a much lower one. Our outgoings (mainly rent) are high but we manage ok, particularly as I do a fair amount of overtime which pays for our 'extras' - days out etc. However DH hasn't been able to work his full hours recently due to health issues and while he had been still getting his full pay for now, this is likely to end soon. I've therefore done a rough calculation on entitledto and it seems we would be able to claim about £350/month in universal credit when his salary drops (we'd be entitled to a small amount now but currently don't claim).

My question is, I understand that they look at your actual income each month to see how much UC to pay you the following month, but how does this work in a couple? Do we claim in his name or mine, and if in his name, do they automatically look at how much overtime I've done and adjust it automatically or do we need to inform them? If it makes a difference, for payroll purposes my overtime pay is effectively a second job even though it is with the same employer so it gets paid through a different payroll number and I get taxed at basic rate on the whole amount. Also, how much would his UC be reduced by for each £ that I earn in overtime?

OP posts:
Mmmmdanone · 11/12/2022 16:06

You will claim as a couple. They get info from hmrc on both your earnings for the month and calculate your uc. For every £ you earn over the free allowance 55p is deducted I think
The gov website will explain it all.

Mmmmdanone · 11/12/2022 16:07

Either can claim. They will see what you earn as linked to national insurance number so no need to tell them.

LovedFedAndNoonesDead · 11/12/2022 16:08

You both full in the online claim, then link them; one of you then gets sent a code for the other to use. When your employer reports your income to HMRC, UC take the figures after deductions for tax, NI and pension, for you both and use those combined to calculate your wages deductions from your total entitlement. Depending on personal circumstances you may have a disregard figure then the remaining amount is calculated at 55% and that is what’s deducted

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BuffaloCauliflower · 11/12/2022 16:08

Either of you can do the claim, but you have to do a joint claim as a couple/household declaring all income you both get

RenegadeKeeblerElf · 11/12/2022 16:13

Ok, so if it's deducted at 55p/£ then I would be able to earn about £600 before we lost it all - that's about the most I do in a month so might be worth doing the claim so that if I am not able to do as much overtime one month we have a bit of protection from the UC. I'll see how things go with his health and keep it in mind.

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