Query UC/Self employed/sick

Winston86

deleted now

elsien

So who is paying the tax on the self-employed earnings?
This looks like it has the potential to get quite messy outside of the UC issues.

nannytone_2

so you text customers to request payment. Just include the friends account details on that text. No more difficult than what you're doing now. After a few weeks all customers will have the new details and your UC claim will be much more straightforward

financeguru96

https://forums.moneysavingexpert.com/discussion/6668015/query-uc-self-employed-sick

The good news is that declaring everything on your journal is exactly the right thing to do, so you're already doing the most important part.

The thing to be careful about is how the money flowing through your account looks to UC. Even though you're not keeping any of it, payments landing in your bank and then going out again can look like self-employed income on paper. The fact that you're immediately forwarding it to your friend doesn't automatically make it invisible to them.

What protects you is the journal entries. Make sure you're noting clearly that the amounts coming in are passed straight on to your friend who is doing the actual work, and that you receive nothing for yourself. Treat it like a business expenses entry: income received, amount paid out to worker, net income to you is nil. The clearer the paper trail the better.

It's also worth thinking about whether UC has assessed you as having limited capability for work, which given you've had a stroke and are still recovering they should have done. If you're in the limited capability for work and work-related activity group, the self-employment minimum income floor doesn't apply to you, which removes one of the main complications around self-employed earnings on UC.

If you're not sure which group you've been put in, it'll be on your UC statement. That detail matters quite a bit for how your case is assessed.

Grumpy_chap

You need to be certain that your friend who is doing the window cleaning understands you consider them to be self-employed and therefore liable for their own tax, NI, insurance etc.

It seems like an odd business model where your customers pay you £512.50 and you pay the sub-contractor £512.50. That means you are not gaining in any way, nor able to claim any allowable expenses. I know you are not actually out working, but small expenses such as mobile phone, any business insurance, business bank account fees still continue.

With regard to the gambling as a means of entertainment, could you gain the same level of engagement if betting nominal amounts such as £1?