Universal Credit
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Previous earnings from work

NaderNader Member Posts: 47 Connected
edited April 2019 in Universal Credit
Hi all

I have applied for Universal Credit and am going through the 'To-do' list. It's a joint application with my wife. We have an interview at the Job Centre on Friday to get our personal security number. Neither of us are working now.

My question is regarding 'confirm previous earnings from work'. We were both shareholders in our company and both received a salary and also dividends. Should I consider dividends be 'earnings' or would it come under a different category in this case, such as an 'investment return' or such like? Or do they both amount to 'earnings'?

Thanks for your help.


  • Antonia_AlumniAntonia_Alumni Scope alumni Posts: 1,781 Pioneering
    Welcome to the community @Nader thank you for sharing this with us. I'll tag in @BenefitsTrainingCo and hopefully they will be able to advise you. Best wishes for Friday :)
  • BenefitsTrainingCoBenefitsTrainingCo Member Posts: 2,692 Pioneering
    Hello Nader

    DWP treats company owner-directors as if they were self-employed for UC purposes if it considers the company is analogous (comparable) to self-employment. If you and your partner have total influence over the running of the company then it is likely to be analogous to self-employment. This is very different of course to shareholders who have invested in a large company like Tescos.

    If you are treated as self employed then it is the profit of the company that is counted as self-employed earnings and it doesn't matter whether you pay yourself through earnings or dividends. Every month you have to report your net profit. See para H4113 of the DWP guidance here for how self-employed profits are worked out.

    I hope this helps.

    The Benefits Training Co:
    Paul Bradley
    Michael Chambers
    Will Hadwen
    Sarah Hayle
    Maria Solomon
    David Stickland
  • NaderNader Member Posts: 47 Connected
    edited April 2019
    Thank you Antonia

    Thank you David (@BenefitsTrainingCo), it is very helpful. 
    Could you help me with something else? It was mentioned to me that earnings from the previous 12 months can effect eligibility for the 'child tax credit' element of UC (I believe it's called Child Responsibility now); ie, there is an earnings threshold. Since I am applying jointly with my wife, what is the threshold figure? (In our case it would be for the previous 12 months, because we are not earning anything right now)
    Thank you
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