Universal Credit and Personal Loan

Markos007

Hello 👋, I need some important advice. a couple days ago I take out personal loans of £8000. the purpose of loan is consolidation debts. Do I need report it as income when I report my income and expenses ? Thank you in advance for response .

Markos007

Albus_Scope

Hi @Markos007 and welcome to the community. 😁

If the loan is for personal reasons, then yes the loan counts as income.

Markos007

thank you for your response

Mary_Scope

A warm welcome to the community from me @Markos007 😄

Emilee

@Markos007 I think Albus may be confusing student loans with personal loans.

You mentioned reporting with your income and expenditure so presumably you are self employed? If this is a personal loan and not a business loan, then it will be counted as capital rather than income.

Capital only impacts you if it is over £6,000 on the last day of your assessment period. If it enters your account and you pay off your debts with it, then it does not impact your UC and would not need reporting.

I always suggest claimants report it anyway, but it should not impact your UC in any way. I would strongly advise trying to time the loan to reach your bank no where near the end of your monthly UC assessment period.

Markos007

Oh thank you so much Emille for your advice. On this afternoon I have sent messages via mu UC journal:

Hello, I would like to report that I took out personal loan of £8000. the purpose of loan is consolidate debts. on the same day I have reicived loan I paid off our credit cards (£5500) paid off resst of car loans (£1600) and paid off bank account overdraft. (£1000) Thanks that we will pay less monthly cost of our debts. Im going to report the loan as my income when I will make  report of income and expencenes soon. Obviosly Im able to show proof how the loan was being spent. Kind regards . Marek

please let me know if I did right…..the end of my UC monthly period is 27th April and I’m going to report the loan as income….but obviously that’s mean I will be rewarded of £0…..is that ok? Anyway much appreciate for your help🙏🙏☺️

Markos007

Im affraid I really messed…..🙁

Markos007

the most important question is - do I need to report those £8000 as my income in the end of assement period ???

Markos007

I will see what they say….