Just Eat and Universal Credit

deliveryguy1

i am considering doing deliveries  for Just Eat  But it is classed as self employed  as a self employed driver how would this be worked out 
example say i worked 20 hours in a week  and for example £250 was paid into my bank for deliveries and fuel
i am using my own car 
have to pay delivery insurance on top of my regular insurance say £20 for 20 hours pay as you go 
i have done 400 delivery miles that has cost me that is 15 pence a mile  so thats cost me £60
now the question is as i am self employed and using my own car for universal credit purposes how is my claim calculated ?
where do i stand on Fuel , Road Tax, Repairs and services  replacement parts 20 000 miles a year 
Would they use a mileage allowance sum to cover the costs of vehicle  repairs fuel and services ?

calcotti

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

NedS

When using your own car for business for UC purposes, you claim for mileage. The system allows you 45p per mile, for the first 833 miles per month, and 25p per mile after that. You can not claim any other vehicle related expenses, so no MOT, insurance, Road Tax, repairs etc. The 45p per mile is intended to cover all these costs.

Your earnings will be your income - expenses from self employment.

So if you receive £250 for a weeks work and had done 400 miles in the week:

Income: £250

Expenses: 400 miles (400 x 0.45p = £180)

Earnings = £250 - £180 = £70

So you would have £70 earnings for UC purposes.

deliveryguy1

i currently work for dominos for minimum wage  + £1 per delivery average delivery is 6 miles  i use my own vehicle but they have there own third party insurance as i am an employee not self employed can i claim Expenses per mile or am i better off going on just eat as self employed ? 

tomtom256

deliveryguy1 said:

i currently work for dominos for minimum wage  + £1 per delivery average delivery is 6 miles  i use my own vehicle but they have there own third party insurance as i am an employee not self employed can i claim Expenses per mile or am i better off going on just eat as self employed ? 

No, as PAYE or an employee, the company should be reimbursing the fuel costs as part of your package.

You can only claim the mileage incurred by your self-employment.

deliveryguy1

Thankyou for reply 
does the delivery and collection mileage count eg if i do 10 delivery's it would starting from first collection point it would and say each delivery was 3 miles away and 3 return journey to collect that would be 30 miles delivering  27 miles collecting  is the full 57 miles counted ?

deliveryguy1

NedS said:

When using your own car for business for UC purposes, you claim for mileage. The system allows you 45p per mile, for the first 833 miles per month, and 25p per mile after that. You can not claim any other vehicle related expenses, so no MOT, insurance, Road Tax, repairs etc. The 45p per mile is intended to cover all these costs.

Your earnings will be your income - expenses from self employment.

So if you receive £250 for a weeks work and had done 400 miles in the week:

Income: £250

Expenses: 400 miles (400 x 0.45p = £180)

Earnings = £250 - £180 = £70

So you would have £70 earnings for UC purposes.

Thankyou for reply 
does the delivery and collection mileage count eg if i do 10 delivery's it would starting from first collection point it would and say each delivery was 3 miles away and 3 return journey to collect that would be 30 miles delivering  27 miles collecting  is the full 57 miles counted ?

tomtom256

Yes it would be the full mileage as it was incurred solely for the business/self employed activity. A normal commute to a fixed place of work would not be allowable.

Icequeen1

tomtom256 said:

deliveryguy1 said:

i currently work for dominos for minimum wage  + £1 per delivery average delivery is 6 miles  i use my own vehicle but they have there own third party insurance as i am an employee not self employed can i claim Expenses per mile or am i better off going on just eat as self employed ? 

No, as PAYE or an employee, the company should be reimbursing the fuel costs as part of your package.

You can only claim the mileage incurred by your self-employment.

In UC, Employees can deduct expenses incurred in their employment if not reimbursed by the employer. 

tomtom256

Icequeen1 said:

In UC, Employees can deduct expenses incurred in their employment if not reimbursed by the employer. 

But not when declaring their self employed income and expenses, as they would need to report it as part of the PAYE .

deliveryguy1

Icequeen1 said:

tomtom256 said:

deliveryguy1 said:

i currently work for dominos for minimum wage  + £1 per delivery average delivery is 6 miles  i use my own vehicle but they have there own third party insurance as i am an employee not self employed can i claim Expenses per mile or am i better off going on just eat as self employed ? 

No, as PAYE or an employee, the company should be reimbursing the fuel costs as part of your package.

You can only claim the mileage incurred by your self-employment.

In UC, Employees can deduct expenses incurred in their employment if not reimbursed by the employer. 

so as an Employee what expenses for UC purposes can i deduct currently the employer pays me £1 for a 6 mile trip but if i was self employed  6 miles would be 6 x 45p (833 miles) or 6 x 25p thereafter 
for example  one month
100  hours at  £8.72  = £872 .00 
250 delivery's  at 6 miles  1500 miles  £250 cash paid by employer 
The first £512.00 of your take-home pay doesn't affect your Universal Credit monthly amount. Every £1.00 you earn in take-home pay over this amount reduces your Universal Credit by 63 pence. 
im over £360 (41 hours over)  so UC take £226.80 leaving me with £133.20 extra aprox £30 a week better off but there is  hardly a month goes by that i don't  need something for repair over last 6 months  2 Tyres (£60)  + MOT (£40)  Service (£120) track rod ends brake discs and pads  2 headlight bulbs (£140)   car wash  Redex to stop smoke ETC although i use my car for personal as well as deliver's  i wouldn't be changing track rod ends every 6 months so if i cannot claim the mileage  and cannot claim anything for repairs  this accounts  for roughly £15 a week just to keep old car on road  that is with only basic repairs earn any more and put NI and tax in the mix  minimum wage £8.72  - NI/TAX = £6.14 - 63P IN THE £ 2.27 a hour better off - repairs?