Universal Credit and SEISS

Coodlep

Hi Everyone,
I am self employed within the entertainment industry. I applied for universal credit, was accepted and was paid a reasonable sum for April to May being unable to work due to covid19. I have had email from HMRC regarding SEISS. I do qualify but I do not have an amount yet. My question is when/if I receive payment from HMRC before I declare my income of Zero for May from being self employed to UC how much would I declare as income? The full 3 month payment from HMRC on their SEISS or do I split the amount in to 3 months and declare my income for May as one of the total from HMRC divided by 3? I hope this makes sense. 

Under_the_Radar_2

The full amount unfortunately, so it maybe beneficial to hold off until you get this months UC payment. If it knocks out your UC claim you can reapply and hopefully get straight back onto it for the following month with the same payment date.

poppy12345

When you receive the grant it will be classed as income in that month, minus your expenses. You don't spread the grant over a 3 month period.

theone999

Under_the_Radar_2 said:

The full amount unfortunately, so it maybe beneficial to hold off until you get this months UC payment. If it knocks out your UC claim you can reapply and hopefully get straight back onto it for the following month with the same payment date.

is it easy to go back onto UC having been knocked off by the SEISS and having already gotten an advance?

poppy12345

Your UC may reduce to zero in the month that you receive the grant. Depending on how much you receive then your following month's UC could also be affected. Usually when UC is reduced to zero because of earnings your UC claim is closed BUT because of current circumstances claims will not be closed. If this does happen then a simple rapid reclaim can be made from your journal and you'll keep the same assessment period dates.

theone999

poppy12345 said:

Your UC may reduce to zero in the month that you receive the grant. Depending on how much you receive then your following month's UC could also be affected. Usually when UC is reduced to zero because of earnings your UC claim is closed BUT because of current circumstances claims will not be closed. If this does happen then a simple rapid reclaim can be made from your journal and you'll keep the same assessment period dates.

ah that's cool is the UC claim not closed even if reduced to 0 public knowledge / available in the public domain?

i'm going to send a message on journal asking about it

theone999

poppy12345 said:

Your UC may reduce to zero in the month that you receive the grant. Depending on how much you receive then your following month's UC could also be affected. Usually when UC is reduced to zero because of earnings your UC claim is closed BUT because of current circumstances claims will not be closed. If this does happen then a simple rapid reclaim can be made from your journal and you'll keep the same assessment period dates.

But even if that's true, I'd still be better off if I am able to delay my SEISS grant claim to be paid out 1 day after leaving UC if I can hold out for it. Once the economy starts going, the government I'm sure will start to reduce UC back down and put sanctions and minimum wage floor back, that would be when I would leave. 

poppy12345

I believe the minimum income floor won't start back until November. UC will continue for as long as you're entitled to it. When your earnings increase your UC decreases. Surely you'll need to apply for the grant before November :O i don't even know if you can delay apply for it for that long.

theone999

poppy12345 said:

I believe the minimum income floor won't start back until November. UC will continue for as long as you're entitled to it. When your earnings increase your UC decreases. Surely you'll need to apply for the grant before November :O i don't even know if you can delay apply for it for that long.

It's because due to trading periods in previous tax year 18/19 with 19/20 not taken into account, I am only getting a fraction of my actual monthly income. So the difference between 1 month of UC and the SEISS grant is about £450 if I trade one for the other.

Now if some says to you, you can have 450 this month, or if you can wait for another 3 months, you'll get triple that amount (subject to -20% tax), anyone would say that if you can hold out in the meantime, it would be a good investment. 

If I was going to get £7500 from the SEISS then I would absolutely claim it right now. But £450 this month in May isn't going to change my fate one way or another. Because if i'm not yet bankrupt, then I can wait. If I was going bankrupt, this sum wouldn't help. 

woebetide

So I have received my grant (a day early) and am left wondering this:
Do I need to declare it in my monthly income or will HMRC inform UC as they do with PAYE?
When I asked on my journal I was told it does no count as income and not to declare it, but this seems weird to me.
Asking the question again but was wondering if somone knew.

poppy12345

SEISS is classed as income for UC in the month it's received. You need to report it on your journal minus your expenses. Both need to be reported on your journal.