Occasional work on Universal Credit

NoMor · 2023-10-08T15:38:53+00:00

I am on UC and do not need to look for work as I am a carer. If I took on a couple of weeks of work would it be a massive pain or is it straight forward to take on work here and there without any issues?

Original poster

NoMor · 08/10/2023 16:40

I should have added... I know in theory this is ok, but is it really as hassle free as they make out?

OP posts:

Laloca2000 · 08/10/2023 16:42

You can take on work, but whatever earnings you receive will be taken into account for that period"s calculations and so you will get less UC for that period.

Applecheeky · 08/10/2023 16:43

UC gets most of its earnings information directly from HMRC . So if you are working for an employer they will give the information to HMRC and Ultimately UC. You report your own earnings if you are self employed.
See here for more information and links to help you work out if its worth it for you to do some work. Usually iut is - if only for your own mental health.
https://www.gov.uk/universal-credit/how-your-earnings-affect-your-payments

Universal Credit

Universal Credit is replacing 6 other benefits with a single monthly payment if you're out of work or on a low income - eligibility, how to prepare.

https://www.gov.uk/universal-credit/how-your-earnings-affect-your-payments

Laloca2000 · 08/10/2023 16:44

HMRC download your earnings and UC calculate accordingly. You don't have to do anything really. You could let them know you are taking temporary work, but even if you don't let them know, your earnings will be communicated to UC regardless..

Applecheeky · 08/10/2023 16:46

Cross posted with your other post. Yes it is not complicated . Just remember to check your earnings pay date and UC dates as sometimes the reduction in it is not the month you were expecting due to the calendar.

Soggydog · 08/10/2023 16:46

It is ok as long as your employer submits the records on time for what you have earned and as long as you are good at not spending the money you earn as soon as you receive it and save it for the month where it will be deducted from your universal credit. The people who really struggle are the ones who spend whatever is in their account then don't have any money left for the following month when it is deducted from UC. I always suggest having a separate account for wages that isn't touched until you see what you are getting from UC that month.

Soggydog · 08/10/2023 16:48

If you are self employed you need to declare what you earn to UC and do your own tax returns. Massively more complicated.

Bromptotoo · 08/10/2023 16:51

Work on UC is not a problem in and of itself though question of whether one is doing enough can get fraught. That shouldn't be an issue for you as Carers are in the no work required regime.

Rules on earnings may, depending on circumstances, give you a Work Allowance. You'd get that if you're a parent with dependent children but there's only one work allowance in a joint claim.

Outside of that earnings reduce UC by 55p for every £1 of pay. Assuming you're working on PAYE reporting of earnings should be automatic as the payroll information filed with HMRC is shared with UC. More involved if you're self employed.

Universal Credit work allowances

https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances

Original poster

NoMor · 08/10/2023 16:51

Applecheeky · 08/10/2023 16:46

Cross posted with your other post. Yes it is not complicated . Just remember to check your earnings pay date and UC dates as sometimes the reduction in it is not the month you were expecting due to the calendar.

I'm just a little worried as under the old system I was regularly put through fraud checks as I'd declared part time earnings in the past. They said that people who had previously declared worked were considered to be more likely to work and not declare it in the future which seemed completely the wrong way round to me! I would like to take on the work, but not if they are going to make my life difficult for doing it.

OP posts:

Original poster

NoMor · 08/10/2023 16:55

Soggydog · 08/10/2023 16:46

It is ok as long as your employer submits the records on time for what you have earned and as long as you are good at not spending the money you earn as soon as you receive it and save it for the month where it will be deducted from your universal credit. The people who really struggle are the ones who spend whatever is in their account then don't have any money left for the following month when it is deducted from UC. I always suggest having a separate account for wages that isn't touched until you see what you are getting from UC that month.

I'm a saver not a spender thankfully. I spent some time many years back with next to no money so I try to save every penny now, just in case!

OP posts:

Fluffyowl00 · 08/10/2023 21:38

Yes, it’s much better than the old system where everything stops whilst they reassess. Especially if you work for an employer it’s just calculated automatically and you will be better off.

platypuspart · 08/10/2023 23:07

Are you being paid Carer's Allowance? If so, you need to consider the impact on that. If you go over the weekly earning limit without declaring it to CA, you'll end up with an overpayment. The earnings limit is 139 a week after tax, NI and expenses.

Bromptotoo · 09/10/2023 10:38

platypuspart · 08/10/2023 23:07

Are you being paid Carer's Allowance? If so, you need to consider the impact on that. If you go over the weekly earning limit without declaring it to CA, you'll end up with an overpayment. The earnings limit is 139 a week after tax, NI and expenses.

If the OP is on Carers Allowance then they will not actually see any benefit from it as Universal Credit is reduced £/£ for other income replacement benefits.

They'll get a Carer Element in UC but that's not subject to the earnings rule that applies in Carers Allowance.

However, if it's in payment then you're quite right about the pitfall if earnings are not reported to CA.