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BEWARE OF CAB ADVICE ! Best date to migrate from CTC/ESA to UC
- Captainflint
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2 months 5 days ago #295925 by Captainflint
BEWARE OF CAB ADVICE ! Best date to migrate from CTC/ESA to UC was created by Captainflint
Hello Everyone,
I’m a disabled single parent on irESA / PIP / CTC, where I have received the dreaded migration letter to UC.
I initially contacted the CAB for advice on when to apply for UC; as the timing is important due to the ESA / CTC benefits being paid in advance whereas the UC payments are in arrears.
The advice I received from the CAB was in an email from them advising me thus : ‘ You will want to apply the day after you receive a tax credit payment as this will stop the day you apply. Your ESA will run on for an extra 2 weeks and stop.’
BUT, when I checked with the HMRC, to find out when my last CTC would be paid, they advised me that if I applied for UC a day after the CTC payment had been made, then the CTC payment would need to be repaid, as this would be an ‘overpayment’ ! CTC is paid in advance apparently. The gentleman at HMRC also stated that this was a common misunderstanding and advised to apply for UC a month after the CTC payment to ensure an overpayment did not occur.
So from my experience, be careful to check what is being recommended, as if I had done what the CAB had advised, I would have to repay the CTC ‘overpayment’ back to the HMRC.
This ‘migration to UC from ESA/CTC’ is an absolute minefield, with Christmas right in the middle of the switch. I’m dreading it !
I’m a disabled single parent on irESA / PIP / CTC, where I have received the dreaded migration letter to UC.
I initially contacted the CAB for advice on when to apply for UC; as the timing is important due to the ESA / CTC benefits being paid in advance whereas the UC payments are in arrears.
The advice I received from the CAB was in an email from them advising me thus : ‘ You will want to apply the day after you receive a tax credit payment as this will stop the day you apply. Your ESA will run on for an extra 2 weeks and stop.’
BUT, when I checked with the HMRC, to find out when my last CTC would be paid, they advised me that if I applied for UC a day after the CTC payment had been made, then the CTC payment would need to be repaid, as this would be an ‘overpayment’ ! CTC is paid in advance apparently. The gentleman at HMRC also stated that this was a common misunderstanding and advised to apply for UC a month after the CTC payment to ensure an overpayment did not occur.
So from my experience, be careful to check what is being recommended, as if I had done what the CAB had advised, I would have to repay the CTC ‘overpayment’ back to the HMRC.
This ‘migration to UC from ESA/CTC’ is an absolute minefield, with Christmas right in the middle of the switch. I’m dreading it !
- David
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2 months 5 days ago #295929 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic BEWARE OF CAB ADVICE ! Best date to migrate from CTC/ESA to UC
Hi Captainflint,
Thanks for sharing your experience.
Whilst what you say may apply to yourself it definitely won't apply to everyone ( see below ). Different people will have different CTC payment cycles. So each individual should get their own personal advice regarding UC Migration. revenuebenefits.org.uk/tax-credits/guida...edits-work/payments/
Frequency of payments
As with most parts of the tax credits system, there are rules that govern frequency of payments.
Weekly or four weekly
Where payment is made to a bank account, payments can be made weekly or four weekly. Claimants can choose the frequency when they apply for tax credits. The default position where no choice is made is four weekly. Normally payments are made in arrears; however, due to the IT system some claimants who are on four-weekly payments may receive part of their payment in advance and part in arrears depending on where in the payment cycle they fall.
David
Thanks for sharing your experience.
Whilst what you say may apply to yourself it definitely won't apply to everyone ( see below ). Different people will have different CTC payment cycles. So each individual should get their own personal advice regarding UC Migration. revenuebenefits.org.uk/tax-credits/guida...edits-work/payments/
Frequency of payments
As with most parts of the tax credits system, there are rules that govern frequency of payments.
Weekly or four weekly
Where payment is made to a bank account, payments can be made weekly or four weekly. Claimants can choose the frequency when they apply for tax credits. The default position where no choice is made is four weekly. Normally payments are made in arrears; however, due to the IT system some claimants who are on four-weekly payments may receive part of their payment in advance and part in arrears depending on where in the payment cycle they fall.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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