Self employed UC Tax/NI query

HearThem

Hope this is posted in the correct forum. 

My husband currently works full time (60+ hours per week) as a ferry skipper. 

We have 3 ASN kids at home full time - 18yo ADHD/ASD, 9yo ASD/Profound dyslexia/JHS and a lively almost 4yo who is awaiting formal diagnosis but is suspected ASD/ADHD. 2/3 kids are in receipt of High/Enhanced rate disability payments.

I am a full time unpaid carer in complete burnout and in need of more support at home. 

We are looking into the idea of husband going self-employed landscaping and remain on books as bank staff for ferry cover during the slower Winter months. 

He could in theory become a full time carer too but he wants to be out working. 

I need him home for bedtime.🥱 

The main question we have comes from reporting income to universal credit as a self employed person. Is he able to pay projected tax and NI each month as earnings dictate directly to HMRC as he would do in employment or do we account and save for that and pay the full bill at tax return time? Therefore the full tax bill would come out the bank and therefore be classed as deductible expenses for UC one month of the year rather than 12? 

Hope that makes sense. 

Thanks in advance for any input. 

Marcon

HearThem said:

Hope this is posted in the correct forum. 

My husband currently works full time (60+ hours per week) as a ferry skipper. 

We have 3 ASN kids at home full time - 18yo ADHD/ASD, 9yo ASD/Profound dyslexia/JHS and a lively almost 4yo who is awaiting formal diagnosis but is suspected ASD/ADHD. 2/3 kids are in receipt of High/Enhanced rate disability payments.

I am a full time unpaid carer in complete burnout and in need of more support at home. 

We are looking into the idea of husband going self-employed landscaping and remain on books as bank staff for ferry cover during the slower Winter months. 

He could in theory become a full time carer too but he wants to be out working. 

I need him home for bedtime.🥱 

The main question we have comes from reporting income to universal credit as a self employed person. Is he able to pay projected tax and NI each month as earnings dictate directly to HMRC as he would do in employment or do we account and save for that and pay the full bill at tax return time? Therefore the full tax bill would come out the bank and therefore be classed as deductible expenses for UC one month of the year rather than 12? 

Hope that makes sense. 

Thanks in advance for any input. 

I think this is a benefits question and I've asked for it to be moved to the relevant board, to help ensure you get answers from people familiar with UC etc.

HearThem

Marcon said:

HearThem said:

Hope this is posted in the correct forum. 

My husband currently works full time (60+ hours per week) as a ferry skipper. 

We have 3 ASN kids at home full time - 18yo ADHD/ASD, 9yo ASD/Profound dyslexia/JHS and a lively almost 4yo who is awaiting formal diagnosis but is suspected ASD/ADHD. 2/3 kids are in receipt of High/Enhanced rate disability payments.

I am a full time unpaid carer in complete burnout and in need of more support at home. 

We are looking into the idea of husband going self-employed landscaping and remain on books as bank staff for ferry cover during the slower Winter months. 

He could in theory become a full time carer too but he wants to be out working. 

I need him home for bedtime.🥱 

The main question we have comes from reporting income to universal credit as a self employed person. Is he able to pay projected tax and NI each month as earnings dictate directly to HMRC as he would do in employment or do we account and save for that and pay the full bill at tax return time? Therefore the full tax bill would come out the bank and therefore be classed as deductible expenses for UC one month of the year rather than 12? 

Hope that makes sense. 

Thanks in advance for any input. 

I think this is a benefits question and I've asked for it to be moved to the relevant board, to help ensure you get answers from people familiar with UC etc.

Thanks. I wasn’t sure where to post as we haven’t decided what to do in terms of employment yet and I thought it was more a tax related question but UC is a new minefield to us. 

Marcon

HearThem said:

Marcon said:

HearThem said:

Hope this is posted in the correct forum. 

My husband currently works full time (60+ hours per week) as a ferry skipper. 

We have 3 ASN kids at home full time - 18yo ADHD/ASD, 9yo ASD/Profound dyslexia/JHS and a lively almost 4yo who is awaiting formal diagnosis but is suspected ASD/ADHD. 2/3 kids are in receipt of High/Enhanced rate disability payments.

I am a full time unpaid carer in complete burnout and in need of more support at home. 

We are looking into the idea of husband going self-employed landscaping and remain on books as bank staff for ferry cover during the slower Winter months. 

He could in theory become a full time carer too but he wants to be out working. 

I need him home for bedtime.🥱 

The main question we have comes from reporting income to universal credit as a self employed person. Is he able to pay projected tax and NI each month as earnings dictate directly to HMRC as he would do in employment or do we account and save for that and pay the full bill at tax return time? Therefore the full tax bill would come out the bank and therefore be classed as deductible expenses for UC one month of the year rather than 12? 

Hope that makes sense. 

Thanks in advance for any input. 

I think this is a benefits question and I've asked for it to be moved to the relevant board, to help ensure you get answers from people familiar with UC etc.

Thanks. I wasn’t sure where to post as we haven’t decided what to do in terms of employment yet and I thought it was more a tax related question but UC is a new minefield to us. 

I think the critical bit is the interaction with UC, which I suspect is even more complicated than our wretched tax system!

I wish you both well - you've clearly got a huge amount to contend with.

sheramber

You can pay amounts towards towards your final income tax and nic due. That amount will be set off against your final bill.

As you liability is calculated on your profit at the end of the year there is no monthly calculation of the amounts due.

You would decide how much you wanted to pay each month towards the final amount due.
 How that works with UC I do not know. 

Spoonie_Turtle

Alas not related to your actual question but if your husband is then available enough to provide 35hrs of care (in any capacity) you can have two carer elements on your UC claim as well as him still working.

Actually that would then take away the MIF so he'd have total flexibility to set his own working hours around your family's needs without worrying about the UC.

Yamor

For UC, any payments made to HMRC for income tax or NICs liabilities can be deducted from profit in the AP in which the payment is made.

Dazed_and_C0nfused

Yamor said:

For UC, any payments made to HMRC for income tax or NICs liabilities can be deducted from profit in the AP in which the payment is made.

Even when no tax or NI is actually owed in that AP?

Yamor

Technically, yes.

Where someone is clearly and deliberately overpaying, perhaps in the expectation that they'll be off UC by the time HMRC refund them, or that they'll be off UC by the time they have tax liabilities to use their credit against, then it perhaps isn't so clearcut.

See this thread:

https://www.rightsnet.org.uk/forums/member/5286/viewthread/19884/

HearThem

Thanks all! He’s a bit of a Jack-of-all-trades and has never been short of offers/requests of work so we’re going to give it a go. 

A bit of a leap to lose his current earnings and employment benefits (been in the same job for 12 years) but hoping a bit more balance at home will be worth the financial trade off.