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SEISS and the Working Tax Credit

SEISS

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The latest email from HMRC indicates that SEISS has to be taken into account in assessing Universal Credit.  But does it also affect Tax Credit entitlement?

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By SXGuy
18th Jan 2021 19:59

I vote yes.

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By New To Accountancy
19th Jan 2021 02:13

I vote yes too - because it is taxable income, being my reason.

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RLI
By lionofludesch
19th Jan 2021 11:04

I vote yes too.

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By paul.benny
19th Jan 2021 12:27

I also vote yes.

Working Tax Credit has been replaced by Universal Credit for most people. UC claimants have to report their income in the preceding 4 weeks whereas SEISS is paid as a lump sum covering several months. No idea how the two interact - I recommend guidance from Citizens Advice.

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Replying to paul.benny:
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By New To Accountancy
19th Jan 2021 13:15

There is a question at the beginning of a UC claim asking if you have received SEISS during the claim period. As universal credit is based on cash accounting, I don't think it matters that it covers a prior period to that of the claim, just the fact it is income during that monthly claim period. That's my understanding.

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Replying to paul.benny:
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By John Stone
19th Jan 2021 16:16

I thought I read somewhere that existing WTC claimants were being migrated to UC between November 2020 and 2024 but that the process had been delayed by the pandemic. If so - there is probably quite a lot of life left in the WTC yet.

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