Review how DWP corrects RTI system errors for SME directors

Background

We want a review of how DWP corrects incorrect HMRC Real Time Information (RTI) data in calculating universal credit. We think DWP often fails to use universal credit regulation to prevent year-end annual company profits from being treated as one month's personal income for company directors.

Additional details

In our view, Universal Credit often misinterprets annual HMRC tax filings from small-company directors as a one-month personal income payment, thereby triggering the Surplus Earnings rules. Although Regulation 61 allows DWP Decision Makers to correct RTI errors, in our view, this is often not applied, which we believe can cause hardship, debt and business closures.

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