UC Claiming Business Expenses

whambam

Has anyone reclaimed business expenses such as rent, gas and lecky, tools for business expansion from UC?

I have been sent a document with some case studies claiming that if you rent a place and live their also to do commerce you can claim expenses between £350 to £650 pm. I don't know if that is the maximum

huckster

Is this link what you are talking about ?

https://www.gov.uk/moving-from-benefits-to-work/starting-your-own-business

If this is an existing business, you would need to have a UC claim and gone through a Gateway self employment review at a Job Centre, where they look at your self employment, to see if you are gainfully self employed.

Not heard of UC actually paying towards business expenses, such as rent for business premises, where you also live.

Icequeen99

whambam wrote: »

Has anyone reclaimed business expenses such as rent, gas and lecky, tools for business expansion from UC?

I have been sent a document with some case studies claiming that if you rent a place and live their also to do commerce you can claim expenses between £350 to £650 pm. I don't know if that is the maximum

Is this an official DWP document?

You can deduct allowable business expenses from your self-employed income. You can't reclaim them - but each month when you provide your figures to UC you should be deducting expenses if they are allowable for UC purposes.

whambam

Yes it is its called UCD5 document which outlines rules of self employed while on UC.

sheramber

whambam wrote: »

Yes it is its called UCD5 document which outlines rules of self employed while on UC.

Do you mean https://www.whatdotheyknow.com/request/454844/response/1116630/attach/13/Self%20Employment%20Guide%20UCFS5.pdf

Using your home for your business
You may use part of your home for your self
-
employed business including, for
example:

providing services to a customer, for example as a hairdresser

general business administration essential for the daily operation of the
business, like:
o
filing invoices, recording receipts and payments
o
stock taking
o
sales and marketing
You can deduct expenses for heating and lighting at the following flat rates:

£10 for at least 25 hours, but no more than
50 hours;

£18 for more than 50 hours, but no more than 100 hours;

£26 for more than 100 hours

You do not reclaim these. You deduct the appropriate amount from your income. This, of course, reduces your profit figure.

whambam

You used to be able to claim from HMRC as well business expenses can you still do it or has UC replaced it?

unforeseen

You have never claimed them from HMRC. You only claim the tax relief on them as part of your SA.

sheramber

UC use your net profit figure to calculate how much UC you are due.

When you submit your self assessment tax return HMRC will charge your net profit to income tax after giving relief for your personal allowance.

In both cases your net profit is your total income less allowable business expenses.

The two systems work independently from each other.