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Possible work loyalty bonus of 3K How would this affect my benefits?

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2 days 11 hours ago #311594 by RoseMan
Hi, I am on UC and in the support group. I have transitional protection for SDP. I manage to work very part time. I get £66 taken off each month because my income goes over the allowed amount.
How will the possible bonus be treated?
Is it employment income?
If so, and if it reduces my UC by 55p per pound and that means I get no UC that month would that end my claim?

I am concerned that it could end my claim and then when I reclaim I would lose the SDP transitional protection, so it could cost me more in the long run.

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14 hours 56 minutes ago #311638 by David
Hi Roseman

If your bonus is remuneration for services in relation to employment then it will be treated as employment income. If you are eligible for UC within 3 months then you can keep your TP as per guidance below :-
Transitional protection in subsequent assessment periods
If a UC award is terminated or it is determined on a qualifying claim that there is no entitlement to an award, transitional protection will not apply to subsequent awards. The only exception to this rule is if:

the UC award terminated or there was no entitlement due to excess income (that is earned income on account of which the financial condition in Section 5(1)(b) or 5(2)(b) of the Act was not met); and

the claimant becomes entitled to an award within the period of three months beginning with the last day of the month that would have been the final assessment period of the previous award (had it not terminated). In the case where the person was found not to have entitlement, the three months runs from the day that would have been the last day of the first assessment period had there been entitlement to an award.

Where the exception applies, the new award is effectively treated as if it is a continuation of the previous award for the purposes of the transitional element/capital disregard.
revenuebenefits.org.uk/universal-credit/...nsitional-protection

David

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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