[pta novice] Want to track Universal Credit deduction but don't know how (reddit)

https://www.reddit.com/r/plaintextaccounting/comments/1o49o6t/pta_novice_want_to_track_universal_credit/

Hi all, I am new to hledger / plain-text-accounting. I get Universal Credit (UC) each month, but I inherited some money that took me over the £6K line (but still below the top-end £16K limit); I didn't report this initially, so when there was a Claim Review, they re-issued previous payment receipts such that I was getting a deduction to cover the amount over £6K. Since then, there's been a further deduction to cover the overpaid amounts.
What I can't quite wrap my brain around is how to account for the amounts I owed.

1 Like

You did a good job of itemising the events. Roughly speaking, I tackled it like this:

  1. Break it down into smallest-possible events/statements
  2. Sketched out some likely-looking journal entries:
# overview.j

; > I receive £400 UC per month, on the 15th of each month.

YYYY-MM-15 universal credit
    revenues:uc
    assets:checking  £400

; > I received inheritance that took my total assets > £6K in September 2023.

2023-09-01 inheritance
    revenues:gifts
    assets:checking  £6100

; > I reported a "Change in Circumstances" in May 2024.

2024-05-01 reported change in circumstances

; > As a result, from June 2024 onwards my payments were deducted by £87 per month, so I then receive £313 UC per month.

2024-06-15 universal credit
    revenues:uc
    assets:checking  £313

; > My "Claim Review" is completed in late October 2024 and as a result, they've determined that I was overpaid between October 2023 and May 2024 (8 * £87 = £696).
; > I can pay that now, or if not, they'll deduct some money each month to reclaim the overpayment.

2024-10-30 claim review, £696 of past revenue reversed, now owed
    revenues:uc
    liabilities:uc   £-696 = £-696

; > From November 2024 onwards, my UC payment is further reduced by £50 per month, resulting in me receiving £263 per month.

2024-11-15 universal credit & repayment
    revenues:uc
    liabilities:uc    £50
    assets:checking  £263

; > In June 2025 I finally twig that it'd be better if I pay off the overpayment, and report my current "circumstances" (report what money I have) in order to have lower deductions.
; > I pay the DWP the outstanding balance of £346 (The original £696 overpayment, less 7 x £50 = £350 they've already recovered).

2025-06-01 pay remaining amount due
    assets:checking
    liabilities:uc   £346 = £0

  1. Combined these in a more complete journal:
# a.j

2023-01-15 universal credit
    revenues:uc
    assets:checking  £400

2023-02-15 universal credit
    revenues:uc
    assets:checking  £400

2023-03-15 universal credit
    revenues:uc
    assets:checking  £400

2023-04-15 universal credit
    revenues:uc
    assets:checking  £400

2023-05-15 universal credit
    revenues:uc
    assets:checking  £400

2023-06-15 universal credit
    revenues:uc
    assets:checking  £400

2023-07-15 universal credit
    revenues:uc
    assets:checking  £400

2023-08-15 universal credit
    revenues:uc
    assets:checking  £400

2023-09-01 inheritance
    revenues:gifts
    assets:checking  £6100

2023-09-15 universal credit
    revenues:uc
    assets:checking  £400

2023-10-15 universal credit
    revenues:uc
    assets:checking  £400

2023-11-15 universal credit
    revenues:uc
    assets:checking  £400

2023-12-15 universal credit
    revenues:uc
    assets:checking  £400

2024-01-15 universal credit
    revenues:uc
    assets:checking  £400

2024-02-15 universal credit
    revenues:uc
    assets:checking  £400

2024-03-15 universal credit
    revenues:uc
    assets:checking  £400

2024-04-15 universal credit
    revenues:uc
    assets:checking  £400

2024-05-15 universal credit
    revenues:uc
    assets:checking  £400

2024-05-30 reported change in circumstances

2024-06-15 universal credit
    revenues:uc
    assets:checking  £313

2024-07-15 universal credit
    revenues:uc
    assets:checking  £313

2024-08-15 universal credit
    revenues:uc
    assets:checking  £313

2024-09-15 universal credit
    revenues:uc
    assets:checking  £313

2024-10-15 universal credit
    revenues:uc
    assets:checking  £313

2024-10-30 claim review, £696 of past revenue reversed, will be reclaimed at £50/mo
    revenues:uc
    liabilities:uc   £-696 = £-696

2024-11-15 universal credit & repayment
    revenues:uc
    liabilities:uc    £50
    assets:checking  £263

2024-11-15 universal credit & repayment
    revenues:uc
    liabilities:uc    £50
    assets:checking  £263

2024-12-15 universal credit & repayment
    revenues:uc
    liabilities:uc    £50
    assets:checking  £263

2025-01-15 universal credit & repayment
    revenues:uc
    liabilities:uc    £50
    assets:checking  £263

2025-02-15 universal credit & repayment
    revenues:uc
    liabilities:uc    £50
    assets:checking  £263

2025-03-15 universal credit & repayment
    revenues:uc
    liabilities:uc    £50
    assets:checking  £263

2025-04-15 universal credit & repayment
    revenues:uc
    liabilities:uc    £50
    assets:checking  £263

2025-05-15 universal credit & repayment
    revenues:uc
    liabilities:uc    £50
    assets:checking  £263

2025-06-01 pay remaining amount due
    assets:checking
    liabilities:uc   £346 ;= £0  ; (not right)

2025-06-15 universal credit
    revenues:uc
    assets:checking  £313

2025-07-15 universal credit
    revenues:uc
    assets:checking  £313

2025-08-15 universal credit
    revenues:uc
    assets:checking  £313

2025-09-15 universal credit
    revenues:uc
    assets:checking  £313

2025-10-15 universal credit
    revenues:uc
    assets:checking  £313

  1. Run some reports to sanity check it, and adjust as needed. Eg, I checked the history of the balance owed:
$ hledger -f a.j areg liabilities
Transactions in liabilities and subaccounts:
2024-10-30 claim review, £69..  re:uc                        £-696         £-696
2024-11-15 universal credit ..  re:uc, as:checking             £50         £-646
2024-11-15 universal credit ..  re:uc, as:checking             £50         £-596
2024-12-15 universal credit ..  re:uc, as:checking             £50         £-546
2025-01-15 universal credit ..  re:uc, as:checking             £50         £-496
2025-02-15 universal credit ..  re:uc, as:checking             £50         £-446
2025-03-15 universal credit ..  re:uc, as:checking             £50         £-396
2025-04-15 universal credit ..  re:uc, as:checking             £50         £-346
2025-05-15 universal credit ..  re:uc, as:checking             £50         £-296
2025-06-01 pay remaining amo..  as:checking                   £346           £50

You can see I didn't get it to quite match your description - with the dates I picked there had been 8 payments not 7. (That's why I've left the balance assertion on final payoff commented out.)

I hope this gives you ideas ?