I've used several magnetic impeller filters for years with sand and had no problems. The key is to not let the filter intake be too low to the substrate and to make sure you turn the filter off when doing anything with the tank that would make sand fly up everywhere.
The only concern I've had with sand is with a particularly light one that easily floats up into the water and can be sucked by the intake, but it's also a very fine powder-like grain so I doubt it will do much damage unless I neglect regular maintanence.
So basically, you can use any kind of filter, including UGF's although there's some kind of trick to that which I can't recall. I believe it has to do with reversing the flow or making a RUGF.