Taxi Driver, Universal Credit, Self Employed nightmare!

Mersey_2

theartfullodger wrote: »

I smell a large rodent: He can't be surviving on £100 a month

He isn't.


See above from the OP & others. That's merely the net income in the one month per year when income tax is paid via self assessment online.

catz1ct

I'm sorry but earning £100 a month is ridiculous, I used to earn that in 2000 doing 9 hours a week in a co-op. He would be better off just claiming UC and look for work that pays better.

Ames

Are people actually reading the thread? He's not earning £100 per month. One month he pays his yearly tax bill, and that brings his income for that month to £100. The other eleven months he earns a proper amount.

jadex

Let's say £13k profit means average £1083 per month.
If OP doesn't "save" for taxes then in January he takes home his £1083 but have to cough up £400 for tax, £145.60 for NI Class2 and £444.60 for Class4 which all have to be paid to his HMRC account.
In total £990 taken from £1083 leaves OP with £93 in hand for that month.
But this way of paying taxes in "unhealthy" - OP should budget for taxes every month.

WillowCat

The problem is Universal credit doesn't really allow you to 'save' for tax or other expenses as they work on their own weird version of cash accounting. He may be able to prepay HMRC an amount monthly that he estimates his tax to be, and adjust at the end of the year.

For those thinking he only earns £100 per month - he wouldn't even have a tax bill if this was the case!

WillowCat

OP - if you are on facebook, join the group "Universal Credit and the Self-Employed" I know there is a user on there who's partner is a taxi driver and they are on UC. She may be able to help regarding the expenses question.

mattcanary

jadex wrote: »

Let's say £13k profit means average £1083 per month.
If OP doesn't "save" for taxes then in January he takes home his £1083 but have to cough up £400 for tax, £145.60 for NI Class2 and £444.60 for Class4 which all have to be paid to his HMRC account.
In total £990 taken from £1083 leaves OP with £93 in hand for that month.
But this way of paying taxes in "unhealthy" - OP should budget for taxes every month.

They clearly have no idea how Universal Credit works!

mattcanary

jadex wrote: »

Let's say £13k profit means average £1083 per month.
If OP doesn't "save" for taxes then in January he takes home his £1083 but have to cough up £400 for tax, £145.60 for NI Class2 and £444.60 for Class4 which all have to be paid to his HMRC account.
In total £990 taken from £1083 leaves OP with £93 in hand for that month.
But this way of paying taxes in "unhealthy" - OP should budget for taxes every month.

Universal Credit requires you to put down expenses accrued and income earnt during each month, when you are self-employed.
You don;t pay tax to the HMRC on a monthly basis.

jadex

mattcanary wrote: »

Universal Credit requires you to put down expenses accrued and income earnt during each month, when you are self-employed.
You don;t pay tax to the HMRC on a monthly basis.

why are you quoting me with remarks about having no idea about universal credit?
my post was not about universal credit but mere example how come OP might end up with £100 in his/her pocket (as some people questioned it);
thanks