Universal Credits and sudden money

[Whiskyfromsmallglasses]

Hi. I'm new to universal credits so just needing some clarification. I work 30hrs a week and claim universal credits as I'm a single parent. This is just some background information.

I was in a car accident three years ago caused my a drunk driver. Anyway my car was written off and my insurance paid me the market value of my car at the time. Fast forward to now and I have received a letter saying that they under valued my car at the time and they now owe me an additional payment of £800. This will be paid into my bank account within the next 7 working days. On the exact same day I received a letter from HMRC saying I had paid too much tax and they owed me £250. This has already been paid into my account

My question is do I need to notify universal credits of this money?

Yes

Can I ask why? It's s not a regular payment into my account

it’s not earned income. Just make sure if your savings go over £6k you declare it as there is a charge for this.

I know you can't have over £6000 and those two payments don't take me anywhere near that. I did wonder cause it's not earned income and will be a one off payment

You wont have to report the £800 as it is not earned income, but the tax rebate is and will need to be reported. If it affects your UC, it will only be for that month.

If/when you have a review, then you might need to explain the £800 and where it came from, but that wont affect your money or anything.

Sorry if I come across really thick but how is a tax overpayment an earned income?

Because you earned the money, they incorrectly took it off you and are giving it back.

It's none of their concern unless you go over 6k. It's not from working so no need to tell them.
If you want to, put a note in your journal mentioning it but they'll not need to know.

Mmm ok a mix bag. I think I will tell them just to keep myself right

Basically...

• you don't need to tell them you were paid £800 for your car as it is not earned income
• you do need to tell them about your tax rebate as it is earned income.
• if either of those payments put your capital over £6k then you need to tell them

If you want to tell them about all of it anyway to put your mind at rest, then that is ok too.

Ok thanks for the help everyone

Just for anyone who might have the same question. I notified universal credits on my journal about the tax refund. I received a reply thanking me however HMRC will notify them of the refund so I didn't need to

That is good to know for anyone in the same situation that comes across this thread.