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Universal credit

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Universal credit

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
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This guidance note covers the scope of universal credit, who can claim, advance payments, sanctions and claim procedures.

Universal credit is a non-taxable state benefit that is administered by the Department of Work and Pensions (DWP) and is available throughout the UK. It is available to individuals on low incomes whether they are in work, unemployed or self-employed. It is designed as a replacement for several ‘legacy benefits’, primarily tax credits. Individuals can no longer make a new claim for tax credits and no tax credit payments will be made after 5 April 2025. Individuals seeking to make new claims and reporting changes in circumstances, are now directed to making a new claim for universal credit. Any existing tax credit claimants will be migrated to the universal credit system. There is information about migration notice letters on GOV.UK.

It is intended that by March 2025 at the latest, all claimants currently receiving the legacy benefits, with the exception of income-related employment and support allowance (ESA), will be automatically transferred to universal credit. In the interim the natural migration

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  • 28 Feb 2025 12:21

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