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UC for self employment and tax return

Hi,quick question or two. 

I claim universal credit because I am self employed and I have claimed this now since April '21, when I started my business. I am doing a tax return but unsure as to whether to mention the UC. It says to include income from all sources, even if taxed at source (like my occupational pension), but there is no space to record UC.... is this right, I just ignore it?? 

2. Does UC include any national insurance contributions? (ie is my NI being paid through my UC payment?) 

Thanks in advance for any help  <3

Comments

  • whizzywoo
    whizzywoo Posts: 802 Forumite
    Sixth Anniversary 500 Posts Photogenic Name Dropper
    edited 15 February 2023 at 5:10PM
    Means tested benefits like UC are not taxable so you don't need to put it on.

    Some benefits are taxable like State Pension, certain types of Industrial Injuries and I think Contributions Based Esa is.  There's a comprehensive list here on .Gov. 
    https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

    I'm not sure if you get NI contributions through UC if you are self employed.

    You may have to pay Class 4 NIC if your taxable profits are high enough.

    Class 2 NIC is payable if your profits are above a certain amount.  You can pay them voluntary to safeguard your future State Pension.  They don't cost very much per week.  Your tax return calculation should tell you what NIC is due.

    More info on self employed NIC here:
    https://www.gov.uk/self-employed-national-insurance-rates
    "All shall be well, and all shall be well, and all manner of thing shall be well."  :) 
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 15 February 2023 at 5:37PM
    All UC claimants get Class 3 NI credits which count towards your future State Pension.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • HillStreetBlues
    HillStreetBlues Posts: 6,625 Forumite
    1,000 Posts Fourth Anniversary Homepage Hero Photogenic
    edited 15 February 2023 at 8:39PM
    Although as calcotti states a person does get Class 3 NI credits, even after 5 years there is still not a system in place that automaticity credits them, and no date when this will be fixed.
    So if you do a pension forecast there might  currently be gaps when there shouldn't be.
     
    Let's Be Careful Out There
  • And if your profits are large enough you still have to pay Class 2 and 4 NI irrespective of any credits your may get from claiming UC.
  • Bit late to be completing a tax return, OP!
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