Umbrella contractor and universal credit

Sunnyuk5

Hi,

I have been employed and on universal credit for last 5 years.

In the past year, I have been employed under an umbrella company. Because I'm not under sdc (supervision, direction and control), I can claim for breakfast, lunch and mileage when going to on site work. I'm currently working as a hybrid engineer.

When my umbrella company does my monthly payroll, they process any mileage, breakfast, lunch as a tax deductible expense. Therefore, my net income is reported to hmrc. But the actual amount I get paid is slightly more, as I'm sort of re-imbursed for the expenses above, which I spent from my pocket. 

I mean the umbrella company are reporting it the correct way to hmrc. But universal credit is paying me the calculation from the net income that is being reported and not from the total pay I'm getting. Does this sound right? The umbrella company are established and reputable. 

bg844

This is quite a difficult question to answer as I'm sure you can imagine with it being unusual, I hope you find an answer but see the link below for the DMG (Decision Makers Guidance) on this.

Scroll down to page 19 (H3080 - H3129):
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1185171/admh3.pdf

Sunnyuk5

This is confusing. But thank you for sharing. Please see attached below that I have circled.. It looks like expenses that are not taxable do not count as earnings for uc. This is under employment related benefits. If that is the case, then good news.