Self employed and savings

keigcf

Quick question re the Self employed and savings, when income just goes into the one current account which is used for all family bills etc. As the income goes in at different times of the year etc the balance can go over the £6000 mark, this however is not for the whole year. Is the person classed as having savings of £6000 when the new universal credits come in, or is it on a average over the year.:)

benefitbaby

Entitlement to UC is calculated monthly and the self employed will be required to give monthly figures re; income, business expenses etc.

HappyMJ

It is the amount carried over from month to month. i.e the balance the day before you get paid if you are paid monthly. If you are saving towards a tax bill due at the end of the year then you can either pay the tax in advance on account or ask for that amount to be excluded.

keigcf

benefitbaby wrote: »

Entitlement to UC is calculated monthly and the self employed will be required to give monthly figures re; income, business expenses etc.

:eek:How the hell do you do that when farming, or a shop with stock for example :eek: god i feel sick! Just also thought about Capital allowances etc

HappyMJ

keigcf wrote: »

:eek:How the hell do you do that when farming, or a shop with stock for example :eek: god i feel sick! Just also thought about Capital allowances etc

The stock does not count as capital nor does the float money in the till (as long as it's not a silly amount). Only the money in the safe/bank counts.

keigcf

I was trying to work the profit figure acurately. Another slight problem, if a loan was made years ago. This can not be repaid (like a mortgage I suppose) does that count as savings?

rogerblack

HappyMJ wrote: »

The stock does not count as capital nor does the float money in the till (as long as it's not a silly amount). Only the money in the safe/bank counts.

Problem is that in some industries - the money comes in in one week, and goes out over 52.
This can lead to 'silly amounts'.

keigcf

rogerblack wrote: »

Problem is that in some industries - the money comes in in one week, and goes out over 52.
This can lead to 'silly amounts'.

This is exactly what I am talking about, its easy to work out a yearly set of accounts, and these follow year on year no problem, however monthly it sounds horrific, you could be over the max income for a couple of months and nothing the next!
Still need clarrification on an old loan. This can not be repaid on demand, (like a mortgage), but is a loan not a gift.:)