one off pension payment in 2018 and SEISS help needed as its drained mee of money

elephant1957

I know this has been mentioned but I took a one-off cash payment of £18,000 in 2018 to cover my wedding and bills not related to my business at all, and I have not been given the grant my total new business profits over the 3years only amounted to income was £22395 .00profits only £10890.00 my new year  2019-20 has doubled that figure and now I will lose everything the problem being my work, creative side,  giftware/ art,  my basic money side hotel cleaner with a contract so neither is going to be first in the list, anyone, any ideas, help or advice .............my beef is I didn't choose this both sides of my business income have been taken away pension money used for wedding etc and I can't get any money.
My partner is self-employed as well,  he got the grant but as a couple claiming UC this month its a double whammy for me I won't get anything as they will take his grant into account,  he has commitments to pay in his business with that money so I won't be able to pay my share of the bills this month, pay for food or pay for my business loan and commitments ........................savings have gone on the previous 2 months 

Thrugelmir

Whatever money you took from the business to fund you wedding has no bearing on it's profitability for that year. (Well at least it shouldn't have done). 

Jeremy535897

If your partner will be paying business expenses from his grant, you may still qualify for universal credit. Are you saying that you took some money from a pension to help pay for a wedding, and that meant less than half your income was from self employment?

calcotti

Jeremy535897 said:

If your partner will be paying business expenses from his grant, you may still qualify for universal credit. 

As Jeremy says, if possible partner should pay business bills within the same UC assessment period as the SEISS is received. The expenses will then be deducted from the amount of SEISS taken into account for UC.

[Deleted User]

When you talk of your business are you a sole trader or limited company?
Your wedding costs have no bearing on your business profitability as it is not a business expense if a limited company and if you are self employed it is not an allowable expense for tax purposes. 
It is unclear what your pension has to do with anything, that is largely an irrelevance.
If you are employed can you be/are you furloughed?  If you are self employed why are you not claiming the SEISS?
Have you taken additional employment since your income fell? There are still jobs available and many tens of thousands have been recruited over the last few months.
We are aware that you didn't choose this, none of us did.

p00hsticks

MadMattUK said:

It is unclear what your pension has to do with anything, that is largely an irrelevance.

It sounds as if they've taken a lump sum out of a pension, which may mean that as a result their income from self-employment was less than 50% of their total income, therefore disqualifying them from SEISS ? As you say, it's not clear though.

elephant1957

Thrugelmir said:

Whatever money you took from the business to fund you wedding has no bearing on it's profitability for that year. (Well at least it shouldn't have done). 

HI, I didn't take the money from my business or put the money into my business it came from a pension pot I had in the 70s that I knew nothing about! its not as if I was expecting to get 80% off that I wouldn't dream of it but the lost income yes I expect some help. thank you for getting back to me 

elephant1957

MadMattUK said:

When you talk of your business are you a sole trader or limited company?
Your wedding costs have no bearing on your business profitability as it is not a business expense if a limited company and if you are self employed it is not an allowable expense for tax purposes. 
It is unclear what your pension has to do with anything, that is largely an irrelevance.
If you are employed can you be/are you furloughed?  If you are self employed why are you not claiming the SEISS?
Have you taken additional employment since your income fell? There are still jobs available and many tens of thousands have been recruited over the last few months.
We are aware that you didn't choose this, none of us did.

Hi Thanks, for contacting me 
I am a sole trader.
I'm with you, the pension money came from a pension pot made in the 70s I knew nothing about and cashed in for personal use. I paid tax and national insurance on this and this has no relation to my business in any way.
They won't give me the grant SEISS as the money from the pension is classed as income along with my business income and is 50% more than my business income!  even though they are not related or were used in my business!
I am on lockdown as my partner is in the high category 
Cheers 

whizzywoo

elephant1957 said:

Hi Thanks, for contacting me 
I am a sole trader.
I'm with you, the pension money came from a pension pot made in the 70s I knew nothing about and cashed in for personal use. I paid tax and national insurance on this and this has no relation to my business in any way.
They won't give me the grant SEISS as the money from the pension is classed as income along with my business income and is 50% more than my business income!  even though they are not related or were used in my business!
I am on lockdown as my partner is in the high category 
Cheers 

Unfortunately the pension money you received is counted as other income during the year in question.  Just as rental income and PAYE income is counted and unfortunately it made your SE profits lower than 50% of the total.  The result is that it has reduced your average SE profits for the 3 year period.  Unfair maybe, but that's the way the rules have been written.

Lots of people have partners or other family members who are having to shield, this has not stopped them still working or getting another job.  You just have to be very careful about social distancing, changing out of clothes and shoes immediately on getting home, showering and keeping to separate bathrooms and bedrooms (if possible).  It can be done and there is information on the Gov.uk on how to do it.

poppy12345

elephant1957 said:

MadMattUK said:

When you talk of your business are you a sole trader or limited company?
Your wedding costs have no bearing on your business profitability as it is not a business expense if a limited company and if you are self employed it is not an allowable expense for tax purposes. 
It is unclear what your pension has to do with anything, that is largely an irrelevance.
If you are employed can you be/are you furloughed?  If you are self employed why are you not claiming the SEISS?
Have you taken additional employment since your income fell? There are still jobs available and many tens of thousands have been recruited over the last few months.
We are aware that you didn't choose this, none of us did.

I am on lockdown as my partner is in the high category 
Cheers 

This doesn't mean you have to also shield. Lots of people have worked since lockdown began and they live with a vulnerable person. They just have to make sure they stick to strict hygiene rules when returning home from work. I.E removing shoes, taking off clothes and putting straight in the washing machine, shower as soon as you come home, wiping surefaces you've touched etc.

This virus isn't going to go away over night and this will be the new normal for quite sometime. Are you planning on not working for the forseeable future?

Have you looked at claiming Universal Credit? Savings/capital of £16,000 and over will exclude you from claiming.

A claim for UC will end any tax credits you may already be claiming.

Use a benefits calculator to check entitlement. Council tax reduction can be claimed from your local council.

Dazed_and_C0nfused

the pension money came from a pension pot made in the 70s I knew nothing about and cashed in for personal use. I paid tax and national insurance on this

You don't pay National Insurance on pension income.