universal credits for self employed

suzie24

Hi have just been transfered from tax credits to universal credits income and expenses are reported monthly. When I reported my expenses I was told you can only claim a maximum of £41 per month for insurance banking and legal expenses combined. I own a car repair garage and have to insure customers cars when they are at our premises and to test drive them, my insurance comes to £200 per month. I telephoned the help line and was told by one person that this is wrong I should be able to claim for all the insurance yet another person he spoke to diagreed. Can anyone give me some advice please have been on the government website and read the list is states business loan interest can only be claimed up to £41 but does not state this by the insurance. 

Grumpy_chap

suzie24 said:

Hi have just been transfered from tax credits to universal credits income and expenses are reported monthly. When I reported my expenses I was told you can only claim a maximum of £41 per month for insurance banking and legal expenses combined. I own a car repair garage and have to insure customers cars when they are at our premises and to test drive them, my insurance comes to £200 per month. I telephoned the help line and was told by one person that this is wrong I should be able to claim for all the insurance yet another person he spoke to diagreed. Can anyone give me some advice please have been on the government website and read the list is states business loan interest can only be claimed up to £41 but does not state this by the insurance. 

Universal credit for self employed looks through the veil of the business to the actual level of income and expenses incurred by the business as though whatever is left is the income of the individual.  (I may not have phrased that particularly well, but hope it makes sense.)

When you say "self-employed" do you mean sole-trader, or own Ltd Co.?
It does make a difference to the detail of how things work.

In a broader, more general consideration, if you own and operate a car repair garage, does your overall position meet the criteria for a successful UC claim?

NedS

Please see the guidance here:

https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/business-expenses-you-can-report-to-universal-credit-if-you-are-self-employed

Legal and financial costs

You can claim business expenses for legal and financial work done for your business.

This includes:

• business loan interest (up to a maximum of £41 each month)
• accounting fees
• legal fees
• insurance
• bank charges
• your share of the expenses, if you’re in a business partnership
• expenses from a company that you own or have control over, for example where you are a director

You cannot claim the costs for any capital repayments on a business loan.

The cited £41 maximum each month relates to interest on business loans (above).

You can claim your insurance costs in full in the month in which they are paid. They must be reasonable and essential for the running of the business.

suzie24

Thanks for that I am eligible for uc the problem I had was claiming for my insurance payment I was sure they had made a mistake telling me I could only claim £41 per month for insurance banking and any legal expenses