Universal Credit - more than £6000 in savings but also in debt?

calcotti

Grumpy_chap said:

Which is what you said above and I agree:

calcotti said:

So the £10,000 is a business asset which should be ignored for UC.

But the OP does not seem to be getting the £10k ignored in the assessment.

Grumpy_chap said:

I think this shows the importance of separate bank account for the business.  The business would then have £10k cash in bank plus £10k liability for the BBLS.  OP can truthfully report the business as nett assets zero.
@Jeremy535897 may be able to comment on disregard of business assets for UC.

You cannot offset assets against liabilities to work out capital for UC. I would expect a BBL to be a business asset and therefore ignored. If the BBL is however treated as a personal asset then the amount of money actually in the account is the capital values do the liability is not relevant.

Jeremy535897

Calcotti knows far more than I do about UC and business assets. If you want to read about business asset disregards, see 
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/899061/admh2.pdf

H2022 gives the basics.

Takmon

Solid_Bruce said:

NedS said:

If you have a bounceback loan, you are presumably self employed / own a business.

Please can you clearly differentiate for us your assets and debts. We need to know what assets and debts your business has, and what assets and debts you personally have. You need to be very clear.

The £10k bounceback loan is presumably a business asset, taken out in the name of your business.

What is the credit card debt? Are these personal credit cards or are they business credit cards?

What is the £13k in your bank account? Is this personal savings or is it business capital? Is it a personal bank account or a business bank account?

Without clear answers to the above it's impossible to offer you any meaningful advise.

I am a self employed writer, have been out of work since March and then got on UC in April.

Bounce back loan taken through business account and was eligible because was making money last year.

Business is just me, not assets.

Credit card is personal debt taken out for stoozing.. to take advantage of interest free period to put money into savings account. 

The 13k is made from the 10k loan and personal money

Hope this is more clear

That's not stoozing because you don't have £8k sat in an account earning interest so if you did have that and have ended up spending it then that's very bad news from a financial management point of view.

Also why have you not worked since march? There have been plenty of supermarket jobs available, how many jobs have you applied for?. Lots of people seem to be in the mindset if they can't do the job they want then they won't work at all which is ridiculous.