Reg 57A(3) - Unused Losses

2025mse

Hi

I currently have an unused loss (Universal Credit) from self employment but am likely to receive employed income that nils the claim and possibly produces surplus income.

I can't work out if I'll still have a loss in the assesment period after the nil award / surplus income / reclaim??  The loss has been generated from buying stock so once it's sold it'd be good to set the income off aginst the loss otherwise my self employed income will show a lot higher than it really has been.

I've looked at the legislation 57A (3) below and it uses the word 'may' implying may not is also an option.

(3) Where a person was entitled to a previous award of universal credit and the last day of entitlement in respect of that award fell within the 6 months preceding the first day of entitlement in respect of the new award, the Secretary of State may, for the purposes of this regulation (provided the person provides such information as the Secretary of State requires), treat—

(a)the assessment periods under the previous award; and
(b)any months between that award and the current award in respect of which a claim has been made,
as assessment periods under the current award.]

I've looked at Revenue Benefits and they use the words 'can', 'seems' and 'appear'.  All very vauge.

When a UC award ends, unused losses will normally be lost. However, the rules do allow the person to continue to carry forward their losses, and potentially accrue new losses, if they claim UC again within 6 months.
If a claimant was previously entitled to UC and the last day of entitlement in that (old) award fell within 6 months before the first day of entitlement in respect of the new award then the DWP can treat:

• The assessment periods under the previous awards; and

• Any months between that award and the current award in respect of which a claim has been made

as assessment periods under the current award. This seems to allow unused losses from an old claim to be used in a new claim as long as the gap is no more than 6 months. It also allows any losses from months between the old and new award to be used as long as a claim for UC has been made. This would appear to require a person to continue making claims for UC (even if they may be entitled to nil) to protect any losses accrued in that 6 month period.

Does anyone know how this is treated or point me to towards an answer?

Thanks

sheramber

Have a read of.  https://www.litrg.org.uk/benefits/universal-credit/self-employment-and-universal-credit/losses#:~:text=Under%20universal%20credit%20rules%2C%20if,in%20a%20future%20assessment%20period.

2025mse

Thanks sheramber.  Similar vein though, no?  The rules allow it to be carried forward not it will be carried forward.  Why the ambiguity?

If your universal credit award ends, any outstanding unused losses will normally be lost. However, the rules do allow losses to be carried forward, and potentially accrue new losses, if you claim and are awarded universal credit again within 6 months.

2025mse

Does the below cover it from Universal Credit guidance April 2024?


/DepositedPapers/ Files/ DEP2024-0442/152._Self-employed_earnings_V13.0.pdf

Self-employed losses:
• apply to the self-employed claimant only, and cannot be applied to the partner
• follows the claimant in cases where they separate from their partner
• are disregarded if the self-employment business ceases and the claimant is no longer self-employed
• can be offset against profits from another business carried out by the claimant, but they cannot be offset against their partner’s self-employed earnings or their own or their partner’s employed earnings
• are retained and re-applied where a reclaim is made and the claimant is still self- employed in the same self-employed business