Any Self Employed/Company Directors Receiving Universal Credit?

debtox

Hi,

I have been having ongoing problems with UC assessing me as employed rather than as a sole company director which I understand should be assessed as self employed.

Can anyone who is self employed please let me know what figures you report to UC in each assessment period? Is it just sales and expenditure (on a cash basis) or does it need more detail? Do you include your own wages as expenditure? I have been told to but this doesn't make sense to me from what I've read. 

Thanks.

calcotti

Does this help https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/universal-credit-and-self-employment-quick-guide
Any wages put through PAYE should be included as a business expense (including the employers NI etc).
The actual money you receive through PAYE should not be included as income - it gets reported to UC through RTI.

Your UC has two elements the self employed bit and the employed bit. The employed earnings are picked up through PAYE/RTI. The payment of the wage therefore needs to be included as an expense on the self employed side. If it wasn't the amount of money involved will effectively be counted as income twice.

Icequeen1

debtox said:

Hi,

I have been having ongoing problems with UC assessing me as employed rather than as a sole company director which I understand should be assessed as self employed.

Can anyone who is self employed please let me know what figures you report to UC in each assessment period? Is it just sales and expenditure (on a cash basis) or does it need more detail? Do you include your own wages as expenditure? I have been told to but this doesn't make sense to me from what I've read. 

Thanks.

As Calcotti says, you are both employed and self-employed for UC. UC looks through the company structure and so you have to report all money in and out of the business (following the usual UC rules). That includes deducting your wages because they are an expense of the business. Those wages will then be picked up as employed income (through the RTI feed from HMRC assuming you are reporting them - otherwise you will need to self-report) 

debtox

Sorry for the delayed reply but thanks both for the replies.

calcotti said:

Your UC has two elements the self employed bit and the employed bit. The employed earnings are picked up through PAYE/RTI. The payment of the wage therefore needs to be included as an expense on the self employed side. If it wasn't the amount of money involved will effectively be counted as income twice.

Thanks for clarifying on that. Makes sense now.