Retired, Universal Credit 23 September 2022 at 11:53AM in Benefits & tax credits 13 replies 935 views

Silver_Simon

I am retired aged 71 with a partner who is 55.  I receive solely my state pension.  For ease of example I will use approx figures.  My pension is say, £730 per month, I have been offered work photographing rugby matches at £50 each on a self employed basis, so October will give me 2 matches, total £100, my expenses, as per gov.uk for car, fuel, tax insurance etc., my website, Photoshop and home expenses, heating, rent, lighting etc. for one room, 'the office' would total £260, showing a loss of £160.  My question is, will my loss of £160 be offset against my state pension for my UC assessment, therefore showing a net income of £730 less £160 equalling £570.  Thank you

calcotti

Any losses arising from your self employment can be carried forward from month to month when calculating your earnings . They cannot be offset against your unearned income such as your pension.

Silver_Simon

calcotti said:

Any losses arising from your self employment can be carried forward from month to month when calculating your earnings . They cannot be offset against your unearned income such as your pension.

Okay thanks for that but what do you mean by carried forward each month.  Assuming, for example sake it is the same for November, income £100, expenses £260, net loss of £160 plus £160 from October, where does that leave me?  Thanks

calcotti

I meant that if you have a loss in one month you can use the loss to offset profit in later months.

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

Silver_Simon

Yeah, I understand that but it won't help me at all. I have been offered work until the end of the season, 11 matches.  I will never have more than two matches (£100) in a month, so carrying forward a loss is not beneficial.  Seems unfair, UC can use unearned income when calculating my total income for assessment but I can't offset a loss against it. Thanks again. 

calcotti

Silver_Simon said:

I will never have more than two matches (£100) in a month, so carrying forward a loss is not beneficial. 

So you are never going to have a profit. Why should UC pay you extra money for what is therefore effectively an expensive hobby rather than self employment.

Silver_Simon

calcotti said:

Silver_Simon said:

I will never have more than two matches (£100) in a month, so carrying forward a loss is not beneficial. 

So you are never going to have a profit. Why should UC pay you extra money for what is therefore effectively an expensive hobby rather than self employment.

Possibly not but I was a pro photographer before retiring earlier this year, shooting Premier league, so I would say it was more than an expensive hobby.  Life has changed, work is hard to come by and I have been forced to claim UC. 

calcotti

Silver_Simon said:.  Life has changed, work is hard to come by and I have been forced to claim UC. 

But you appear to be saying that you will always make a loss which means it can’t, to my mind, be described as employment.

Silver_Simon

calcotti said:

Silver_Simon said:.  Life has changed, work is hard to come by and I have been forced to claim UC. 

But you appear to be saying that you will always make a loss which means it can’t, to my mind, be described as employment.

It is income though, what should I do, say nothing and potentially be in trouble with the IR?  It's either taxable income or it's not.  

NedS

Silver_Simon said:

calcotti said:

Silver_Simon said:.  Life has changed, work is hard to come by and I have been forced to claim UC. 

But you appear to be saying that you will always make a loss which means it can’t, to my mind, be described as employment.

It is income though, what should I do, say nothing and potentially be in trouble with the IR?  It's either taxable income or it's not.  

How is it income if you are losing £160/month? That is not an income, that is a loss.

My advice would be to decline the offer. Either they need to pay you enough to actually make an income after your expenses, or it's not a financially viable venture.

tomtom256

He isn't losing money, it's just what can be claimed as an allowable expense for tax purposes etc.