Night out allowance and universal credit

Conor:

Winseer:
UC get your takehome pay from HMRC verified by your employer(s). Night Out money - will be included towards any 63p/£ deductions once you go beyond your personal earnings threshold calculated on your household status.

Why do you continue to post nothing but absolute unadulterated ■■■■■■■■? How does one manage to be so wrong about so many things? UC is based on net income, not gross income. Deductible expenses under Chapter 2, Part 5 of ITEPA 2003 are disregarded in calculating employed earnings - UC Regs, reg 55(3)(a). This ensures any allowable expenses reimbursed by an employer are not taken into account as income. Night out money which is within the tax free allowance set by HMRC comes under that and is not regarded as income. It is a reimbursement for expenses therefore it is disregarded as income for benefits purposes, whether that be tax credits, universal credit, housing allowance, council tax credit whatever. Also if you pay money into a pension 100% of any money paid into a pension is disregarded as income for universal credit too. So if you earned £30,000 a year and put the whole £30,000 into a pension then as far as universal credit is concerned your income is £0.

Here you go…UK Statutory Instrument 2013 No 376 The Universal Credit Regulations 2013

legislation.gov.uk/uksi/2013 … on/55/made

Employed earnings

(2) Employed earnings comprise any amounts that are general earnings, as defined in section 7(3) of ITEPA, but excluding—

(a)amounts that are treated as earnings under Chapters 2 to 11 of Part 3 of ITEPA (the benefits code); and

(b)amounts that are exempt from income tax under Part 4 of ITEPA.

(3) In the calculation of employed earnings the following are to be disregarded—

(a)expenses that are allowed to be deducted under Chapter 2 of Part 5 of ITEPA; and

And to prove my point about pension contributions and it being based on net pay, not gross pay…

(5) In calculating the amount of a person’s employed earnings in respect of an assessment period, there are to be deducted from the amount of general earnings or benefits specified in paragraphs (2) to (4)—

(a)any relievable pension contributions made by the person in that period;

(b)any amounts paid by the person in that period in respect of the employment by way of income tax or primary Class 1 contributions under section 6(1) of the Contributions and Benefits Act; and

(c)any sums withheld as donations to an approved scheme under Part 12 of ITEPA (payroll giving) by a person required to make deductions or repayments of income tax under the PAYE Regulations.

Not you again, criticizing when I’m trying to help someone out here with a serious adult question…

If YOU know better, rather than report third-party stuff that isn’t relevant to this discussion - then give YOUR exmaple where YOU were deducted differently to the manner in which I have laid out here very specifically.

The Bottom Line Earnings figure (aka “Takehome Pay”) no matter HOW it is made up - is the figure used to calculate the 63% taper-off.
My example above is accurate to the penny. Any “deductions” that reduce the takehome pay therefore - mean LESS taken off and therefore MORE of the original UC claimed amount kept.

This is why people with money problems go to “Citizens Advice” rather than “A Bank Manager” or “A Lawyer” btw.

The Bank manager - wants to mislead you into paying more interest, whilst the Lawyer wants you to pursue cases that are easy to win (on a contingency basis) OR only take on lost causes - for a fat fee, which puts social justice out of reach of ordinary people - period.

Now stop talking like a bloodsucking lawyer man, and put some “alternative examples” forward… It isn’t an unreasonable request here.

FFS How can you try or even want to out-left me here, on THIS a financial matter? :frowning:

OP wants to know if “Night Out Money” matters when claiming UC…

If it is on the payslip - it will add to takehome pay, and it will thereby reduce UC by 63p in the pound.
If it is paid cash OFF the payslip - it won’t be noticed by HMRC at all, because that payment presumably didn’t go through the books, and therefore will NOT be tapered off.

The UC system has long since known to be full of holes, most of them left by Osbourne and any Statutory Instruments or versions of UC moved whilst he was chancellor.
Your “Legal information” is therefore as “out of date” as any notion that “UC is a Tory benefit and to be resisted”. No more - not with 365 Tory MPs!

If you’d read further down my post, I detailed the way that HMRC pass over the NET payment to DWP for the calculation of the taper.
The NET payment is pushed up by any “additions” on a payslip, including Night Out Money, especially if it is tax-free.
Thus, an increase in NET pay - is what affects the 63p/£ taper UPwards, and the total amount to come - DOWNwards.
If you are paid say, £100 on the other hand, you will pay say, £12 Nics, £20 Tax leaving the 63p taper to be on the £62 that remains and NOT the starting £100 gross payment.
…But a deduction will be made, nonetheless - £39.06 will be taken OFF any UC claim for earning an extra £62 takehome pay in this example, regardless of it starting as £100 gross, or some other amount.
It is the takehome figure that counts.
You really need to read more of my posts, rather than gloss over it because you’re lazy like an acting manager, dislike me like an acting manager, and have no regard for the well-being of OP by making him now doubt any validity of my own posts - which were trying to do him a favour, not invite you to backbite me as if by an acting manager every time I pipe up with some serious advice, especially for this - a new poster and all. :frowning: