SEISS counted as capital for UC claim?

Carolnee

Hi I asked my work coach via my journal if/when I receive the self employment grant from the government did I declare it as income with tax and NI deducted and this is the reply I got;
 " If you receive the self employment grant you won't need to report it as income, rather it is considered to be capital which is disregarded.
not sure what this means, any thoughts on this please?

poppy12345

No, this isn't correct. When you receive the grant it will be counted as income in the month it's received and could reduce your UC to zero. Depending on how much you receive it could also affect your UC the following month.

Hermann

You can pay out on legitimate business expenses in the same period which will reduce the impact on UC, so worth organising your affairs efficiently.

calcotti

Carolnee said: the reply I got;

 " If you receive the self employment grant you won't need to report it as income, rather it is considered to be capital which is disregarded.

Completely wrong unfortunately. See https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/self-employment/
"The Self-Employment Income Support Scheme will be treated as earnings in Universal Credit. Your Universal Credit payment will adjust in response to changes in your earnings."
You need to report it as business income for the month in which you receive it. It will be offset by any business expenditure for the same month in the usual way.The difference will be treated as your self employed earnings for the month.