Universal Credit expenses question

Nikster73

Apologies if this has previously been asked.  We have paid a £2000 dividend out of the business into our personal account.  Is this excluded as an expense? I'm guessing i don't put it into the figures? 

Thanks 

Rubyroobs

I imagine it would be counted as income if you are paying yourself a dividend ? I may be wrong.

Nikster73

I will need to be sure before entering any figures.

Rubyroobs

Nikster73 said:

I will need to be sure before entering any figures.

Ok I'm sure one of the experts will be along soon and will know the correct answer.

calcotti

You should completely ignore the dividend as income for UC purposes. It is neither personal income nor is it a business expense. A dividend is a distribution of profit. The dividend payment you receive is treated as capital so if it takes your capital over £6000 you should disclose this.

Nikster73

Thanks.  I will ignore the dividend 
Can I also ask you i am on furlough at present.  I received a £400 payment into the business account from HMRC JRS grant.  Under UC income section, it asks were you paid any money by the HMRC Coronavirus self-employment income support scheme? Do I put the £400 into that box? Or will UC already have taken the £400 furlough into account? 

calcotti

https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/how-to-report-your-earnings-from-self-employment

Business income
You do not need to report any other money you get from grants paid to support businesses affected by coronavirus. This includes money you may get from the Coronavirus Job Retention Scheme to compensate you for payments made to your furloughed employees.

You are not allowed to claim the following expenses:

• wages covered by payments from the Coronavirus Job Retention Scheme

So on the expenses you only report the cost of wages which is in excess of what is covered by the CJRS and you ignore the CJRS as income.

The amount you actually receive as the ‘employee’ will be reported through RTI and taken into account as earnings.

The SEISS scheme is a different scheme.

Nikster73

Thanks for your  help  and advice.