Self employment - universal credit

Sunnyuk5

Hi,

I am going self employed as an IT contractor. I will be the company director but will also be paying myself a monthly salary via PAYE. So HMRC will get a monthly income feed from my accountant.

However, when talking to universal credit, I am getting conflicting advice. One advisor says I should put in 0 on the monthly self employment UC form, as there is a monthly RTI going to HMRC. Another advisor says to fill it up and see if it causes any duplication due to the monthly RTI to HMRC. And if that does happen, to put in a message on the journal.

I haven't seen the form yet. Let me give you an example I will get £2350 monthly into the business. My accountant will deduct accountancy fees, employer NI, fuel costs. This would then give a gross figure of around £2000 a month. Then whatever the net income from that figure is gets forwarded to HMRC.

How do I do this on the UC form?

Icequeen1

So, you are not self-employed for tax purposes - you are a limited company director and employee of the company. 
For UC, you will be treated as self-employed and employed. . You have to declare money in and out of the company as your self-employed earnings (including your wage expense) and then they will show the RTI feed as your employed earnings. 

So you will declare the 2350, minus the fees and costs, minus your RTI salary as your self-employed income. Then the RTI feed will add in teh employed earnings. 

Your RTI salary is simply an expense on the UC self-employment side so it balances out. 

huckster

Follow the advice from @inequeen1 above which clearly explains what you need to do.

tomtom256

Your allowable expenses should still be declared to UC such as your fuel. There is a guide that will be uploaded to your journal once you delcare it - https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/how-to-report-your-earnings-from-self-employment