[1] Under UK social security law, an advance payment may also be made to a person in receipt of Universal Credit.
Advanced payments are recorded as assets on the balance sheet.
As these assets are used they are expended and recorded on the income statement for the period in which they are incurred.
Advance payments made as a loan are generally repayable but this is not always the case.
In Leibson Corporation and Others v TOC Investments Corporation and Others, an English Court of Appeal case in 2018,[3] it was established following principles of contractual interpretation that, in the absence of any specific language to the contrary, an "advance" is not always repayable.