Universal credit claim - Ltd Company income verification

Nikster73

Good Morning
Im looking for some advice please, as we have been asked to submit monthly income details for UC.
I don't want to get anything wrong, or have to pay back any money etc.  Im hoping many others will also have submitted their information for a claim.
My husband and I are company Directors and we both receive a paye salary every month. I am furloughed at present, and my husband has returned back to work on 1st June 20.  What information do I submit?  I know it will be my furloughed salary amount and my husbands monthly salary ( not a furloughed amount) do I submit NI deductions which are on payslip?
Do I submit fuel costs/ work out mileage?  What have others submitted?  I dont want to miss out anything.  Do you include any payments that have been paid into the business account? 

tomtom256

You don;t need to send the PAYE info as that should come from the RTI feed and HMRC.

You need to report your share of the company income and expenses. See gov.uk or google UCD5.

calcotti

For your business expenditure you need to remember to include the money you have paid as normal salary to your husband and tax/ni you have paid out in connection with that.

For you as a furloughed director I am not sure if you report the money you paid yourself as an expense and include the money you received from CJRS as income or whether you just ignore both. I can't find any information on this.

https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/how-to-report-your-earnings-from-self-employment

NedS

You report all income and expenses into and out of the company in that period.

Income is any income from trading and any income from government schemes including the furlough scheme received by the company during that period (does not matter when the work was carried out)

Outgoings are any legitimate business expenses including salaries paid by the company during the period.

So you would report monies received from furlough scheme as income and you would report your salaries as expenses.

Your PAYE income should show up automatically on the RTI feed, hence why you only need to report this as a business expense.

Icequeen1

calcotti said:

For your business expenditure you need to remember to include the money you have paid as normal salary to your husband and tax/ni you have paid out in connection with that.

For you as a furloughed director I am not sure if you report the money you paid yourself as an expense and include the money you received from CJRS as income or whether you just ignore both. I can't find any information on this.

https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/how-to-report-your-earnings-from-self-employment

There are new regulations covering this - so any job retention grant is ignored as income - but you can't deduct any wages covered by the grant. http://www.legislation.gov.uk/uksi/2020/522/contents/made

Nikster73

Do you include, mileage, workwear purchased etc

Nikster73

Not sure if we would include fuel receipts, or mileage?

Nikster73

I have spoken to my accountant regarding the UC.  Firstly she does not understand why we are being asked to input income and expenses under self employment, when we are not self employed!  We are both paid a salary through paye.  If I input details stating self employment, then I will be submitting false information.  
Its confusing......Do they want to know our salary income and any payments into the business account?  If we are putting through expenses, do we include the monthly van payments, workshop rental payment.  It seems such a lot to work out each month.  My husband will have fuel receipts, but won't   necessarily  know how many miles he has done.

whizzywoo

Nikster73 said:

I have spoken to my accountant regarding the UC.  Firstly she does not understand why we are being asked to input income and expenses under self employment, when we are not self employed!  We are both paid a salary through paye.  If I input details stating self employment, then I will be submitting false information.  
Its confusing......Do they want to know our salary income and any payments into the business account?  If we are putting through expenses, do we include the monthly van payments, workshop rental payment.  It seems such a lot to work out each month.  My husband will have fuel receipts, but won't   necessarily  know how many miles he has done.

Both you, your husband and accountant need to take on board that Universal Credit treats Directors of Ltd Companies as if they are self employed.  Universal Credit works on a Cash Basis for accounts and NOT accruals as your accountant would normally use.  Therefore all business income coming in and all business money going out in the Assessment Period needs to be reported.

Show your accountant both of the links quoted by @Icequeen1 above.  
https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/how-to-report-your-earnings-from-self-employment
but some changes have to been made concerning the money received by the company under CJRS and the wages it covers.
http://www.legislation.gov.uk/uksi/2020/522/contents/made

calcotti

https://www.gov.uk/self-employment-and-universal-credit

Everyone claiming Universal Credit needs to report their self-employed earnings at the end of each monthly assessment period. This includes company directors, even those paying themselves by PAYE.

Nikster73

I contacted UC today and was advised we would not have to submit income/expense details.  The agent changed our details.  Then I received a call 5 mins later saying that the agent was incorrect and had given me wrong information!  We do have to submit the details, so that part is clarified.  My husband had taken a dividend in June, do I put this through as income? Im actually wondering if this is worth claiming for.  Also how do UC know that you are claiming correctly for expenses and that you are not just putting any amount through?  Do they check this?  Do the then ask to see your business account?