Benefits Calculator for Universal Credit - applications for partnership members

calculator86

Good afternoon,

We are a partnership of 4 self-employed (parents with 2 sons) and have some questions about using MoneySavingExpert's Benefits Calculator. We have never applied for UC or other benefits before, so please can you confirm or correct the following:

1. We will need to apply for UC as 1 couple and 2 singles (= 3 applications).

2. We are living in the same household, and are all recorded in the tenancy agreement, which makes our sons formally liable for paying rent, which also makes them NO non-dependants. So in the couple's application we need to enter "Tenant - private sector", 0 children (no dependants) but 2 adults, and these NOT as "Relative or friend" but as "Joint tenant".

3. As expected "Self-employed profit", each of us will need to enter their share of our partnership's expected profit (in this case 25%, as in tax returns). Same share of expenses.

4. As the couple's "eligible rent" we will need to enter 50% of the actual rent?

5. The calculator didn't show our exact yearly Council Tax liability (about £7 too high), so as the couple we need to enter 50% of the actual amount?

6. For our sons' calculations, each of them will also have to enter "Tenant - private sector" (and NOT "Living rent-free with friends/family").

7. Each of them will have to enter that "3" other adults live with them in their home.

8. These 3 adults will also NOT have to be entered as "Relative or friend" but as "Joint tenant".

9. As expected "Self-employed profit" they will also need to enter their share of our partnership's expected profit (for each one 25%). Same share for expenses.

10. As "eligible rent" each of them will need to enter 25% of the actual rent?

11. As Council Tax liability each of them will need to enter 25% of the actual amount?

12. Our partnership exists for more than a year, but since now is the first time we apply for UC, the MIF will not come into effect, at least not for a year.

Is there anything else we should know regarding the application process?

Many thanks!

whizzywoo

calculator86 said:

Good afternoon,

We are a partnership of 4 self-employed (parents with 2 sons) and have some questions about using MoneySavingExpert's Benefits Calculator. We have never applied for UC or other benefits before, so please can you confirm or correct the following:

1. We will need to apply for UC as 1 couple and 2 singles (= 3 applications).

2. We are living in the same household, and are all recorded in the tenancy agreement, which makes our sons formally liable for paying rent, which also makes them NO non-dependants. So in the couple's application we need to enter "Tenant - private sector", 0 children (no dependants) but 2 adults, and these NOT as "Relative or friend" but as "Joint tenant".

3. As expected "Self-employed profit", each of us will need to enter their share of our partnership's expected profit (in this case 25%, as in tax returns). Same share of expenses.

4. As the couple's "eligible rent" we will need to enter 50% of the actual rent?

5. The calculator didn't show our exact yearly Council Tax liability (about £7 too high), so as the couple we need to enter 50% of the actual amount?

6. For our sons' calculations, each of them will also have to enter "Tenant - private sector" (and NOT "Living rent-free with friends/family").

7. Each of them will have to enter that "3" other adults live with them in their home.

8. These 3 adults will also NOT have to be entered as "Relative or friend" but as "Joint tenant".

9. As expected "Self-employed profit" they will also need to enter their share of our partnership's expected profit (for each one 25%). Same share for expenses.

10. As "eligible rent" each of them will need to enter 25% of the actual rent?

11. As Council Tax liability each of them will need to enter 25% of the actual amount?

12. Our partnership exists for more than a year, but since now is the first time we apply for UC, the MIF will not come into effect, at least not for a year.

Is there anything else we should know regarding the application process?

Many thanks!

I cannot answer all your questions but you need to know that self-employed income is NOT treated the same for UC as it is for HMIT.  The rules are much stricter, expenses which can be claimed are much less and both income and expenses have to be declared monthly on a cash basis and NOT accruals as you can for the Tax office.

Have a look at this link:  https://www.gov.uk/self-employment-and-universal-credit

calcotti

1. Even as a couple you each have to claim UC. The first claimant declares details of their partner and get given a linking code. The partner then claims and uses the linking code to their claim to the first claim. The UC is then calculated on the joint circumstances.
2. Agreed.
3. You will each have to submit self employment income and expenditure on a cash accounting basis. This will be needed on the last day of each UC monthly period.

https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide
4. Agreed.
5. Agreed (assuming that all 4 are included on the CT bill).
6. Agreed.
7. Agreed.
8. Agreed.
9. As per note 3.
10. Agreed.
11. As per note 5.
12. Agreed.
.

calculator86

@whizzywoo - Thanks for your answer! Regarding expenses I had read the web page "SelfEmployedExpensesClaimed" (entitledto help) and that spreadsheet "Self-employed expenses for Universal Credit" (Ferret Information Systems).

Based on this information we only intend to include the monthly subscription costs for software we need exclusively for our work, monthly business website/email costs, monthly business bank account cost and these £10 per partner for working from home business (25 to 50h/month), which would be altogether about £25 per partner per month. Would you think this is acceptable?

calculator86

@calcotti - Thank you for all your answers!

whizzywoo

calculator86 said:

@whizzywoo - Thanks for your answer! Regarding expenses I had read the web page "SelfEmployedExpensesClaimed" (entitledto help) and that spreadsheet "Self-employed expenses for Universal Credit" (Ferret Information Systems).

Based on this information we only intend to include the monthly subscription costs for software we need exclusively for our work, monthly business website/email costs, monthly business bank account cost and these £10 per partner for working from home business (25 to 50h/month), which would be altogether about £25 per partner per month. Would you think this is acceptable?

I don't know.  All I did was point you in the direction of the rules, it's not something I've ever been involved in.  I just know that it's very different from the Inland Revenue rules.

calculator86

Thank you!

NedS

calculator86 said:

@whizzywoo - Thanks for your answer! Regarding expenses I had read the web page "SelfEmployedExpensesClaimed" (entitledto help) and that spreadsheet "Self-employed expenses for Universal Credit" (Ferret Information Systems).

Based on this information we only intend to include the monthly subscription costs for software we need exclusively for our work, monthly business website/email costs, monthly business bank account cost and these £10 per partner for working from home business (25 to 50h/month), which would be altogether about £25 per partner per month. Would you think this is acceptable?

All sounds reasonable to me.

calculator86

@NedS Thank you!