Does anyone know if getting a CIS rebate affects uc?
Just had a client on phone who did a lot of self employment last year, worked employment for 3 weeks then self isolated (mild COPD) as soon as Covid struck. Applied for uc but got declined, applied again roughly 3 weeks later and got accepted. He's had someone on from uc this morning asking him if he has a rebate due, and that it will be offset against his claim, as it will be classed as income.
On the one hand I can understand that UC is a benefit for people with no other means of support and that any other monies received should be taken into account, but on the other hand this is monies claimed because too much tax had been taken off and the tax rebate merely redresses that.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
UC like the previous in work benefits tend to be done on a post tax basis. Hence if someone is taxed too much they will get more UC and then when they get the tax rebate the UC will be reduced. I don't know what the marginal rate currently is, but it was around the 65% mark.
