On universal credit and starting a business

NSamms72

Hi all, 
I have tried to Google this but cannot find a straight answer anywhere. Well, other than enrol on the NEA scheme. 

I'm on universal credit and considering starting out as a sole trader. My work coach suggested I used a company called inspiring enterprise to help me with setting up my business. She did mention about the NEA, but said that a few of her other punters found inspiring enterprise good for them. I'm about ready to go live. However, as I'm on universal credit, I don't have a great deal of money left to help with business expenses. Since my business takes place intirely on the Internet and its only me working, I don't need a great big load or grant. I only need 900 - 1100 pound to help me in my first year. Now the only thing I can find is the NEA which mean signing up to another mentor and almost going through the process again that I've already done with inspiring enterprise. As I said, I'm about ready to start trading. I don't have great credit history so a loan application might not be accept or the interest will be too high. In fact, what I would pay back each month, is what I would need each month on the first year, so that's bit pointless. My mum has said she can lend me the money (which is great) and it would be purely for the business and finical support for the first year. My question: if my mum does lend me the money, will the dwp see it as income and reduce my universal credit for that month as I received 1000 pounds from my mum? Or will they consider it to be a grant/business loan and it not reflect in my uc payments?
Appreciate any helpful rsponses
Thank you in advance. 

poppy12345

Gifts of money are not classed as income and won't affect your UC. The only time there could be issues is if it's a regular payment.

NSamms72

Thanks poppy that's great. It will be a one time payment. 

deliveryguy1

I have a question if i start a shop on ebay how would the stock work out eg if i buy 100 for £1000 in first month sell 60 for £1200 after  fees  and postage in a month   have i made £200 or £600 for uc purposes   is it sale of item - cost of item   as i have limited funds i would have to reinvest so month 2  spend £1000 which is £600 to restock + £400 for other lines say i sell 80 for £1600 so now ive taken £2800 in 2 months i have sold 140 items and left with 60 items of stock how would this work 
my allowance is £512 before the 63p in the £ deduction kicks in  so 2 months would be £1024 allowance  i have had £2800 turnover i have spent  £2000 on stock of which i have £1200 worth of stock left   how would i report this to uc thanks in advance for answer
although i have £1200 worth of stock left i might have bought some items that are not selling ie due to  size colour or customers not interested in items  etc that i may be stuck with 

Spoonie_Turtle

deliveryguy1 said:

I have a question if i start a shop on ebay how would the stock work out eg if i buy 100 for £1000 in first month sell 60 for £1200 after  fees  and postage in a month   have i made £200 or £600 for uc purposes   is it sale of item - cost of item   as i have limited funds i would have to reinvest so month 2  spend £1000 which is £600 to restock + £400 for other lines say i sell 80 for £1600 so now ive taken £2800 in 2 months i have sold 140 items and left with 60 items of stock how would this work 
my allowance is £512 before the 63p in the £ deduction kicks in  so 2 months would be £1024 allowance  i have had £2800 turnover i have spent  £2000 on stock of which i have £1200 worth of stock left   how would i report this to uc thanks in advance for answer
although i have £1200 worth of stock left i might have bought some items that are not selling ie due to  size colour or customers not interested in items  etc that i may be stuck with 

This is a completely different question so you should have started your own thread, but the answer is you report to UC what you actually spend and receive in each assessment period. So when you pay for stock, report what you spent.  When you get paid for sales, report it for the relevant period.  When you pay eBay fees, report those for the period in which you actually pay them.  I believe this is known as cash basis accounting.

calcotti

Read the guidance here https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide