Tax credits Vs Universal credit

Fred291

Hi
I'm currently receiving tax credits but its really dropped as although my husband has been out of work since February we have to put some income in in case he starts work. We have also been overpaid - they never communicated this to us or said why - possibly because we mis-understood and put £0 for husbands income when out of work and should have put in something to cover the year??? I don't know, but its a struggle at the moment as he is out of work so effectively we are claiming we are getting income that we are not..
I have been looking on 'entitled to' and it looks as though we could get more on universal credit - though its very hard to tell as the tax credit amounts dont match up so its been hard to compare.
I don't really understand the tax credit system and need some help with the universal credit system.
So I'm self employed. Work in family business and take home the same amount per week. is it based on my take home amount (which is the same figure as on the accounts). They don't take your business profits into account, do they? 
I am getting the self employed grant as we have badly affected by the coronavirus, but I have been lucky enough to still be paid. I have not received this grant on top of my normal wages, I have received this instead of and therefore not taken wages from the business. Do I therefore reduce my self-employed income and put this down or is it all lumped in together?
It looks as though payments could vary monthly? Do you have to confirm your income every month or something? I guess mine could be variable as I'm paid weekly. I don't understand how it works!
Thanks for your replies and any other information on it would be helpful thanks.

calcotti

Tax Credits are very difficult to calculate because they are generally based on the previous year of income not your current income (unless the annual change is likely to exceed £2500). UC is always based on your current income.
The SEISS grant is part of your self employed income for the current tax year for a Tax Credits purposes.
For UC entitlement is recalculated each month based on your income in that month. As a self plotted person you have to report income and expenditure every month.
Bear in mind that if you have had a Tax Credit overpayment this may well be deducted from your UC should you claim it.
UC is potentially very difficult for self employed people because there is a Minimum Income Floor which means that even in months in which you earn less you are treated as having earned that amount and your UC calculated accordingly.
For UC your monthly income is your share of the difference between the business income and expenditure. What you choose to withdraw and/or leave in the business is not relevant.
If self employed it is really important you understand how UC works before deciding to change. You cannot return to Tax Credits if you later decide it was the wrong decision.
https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide