Self employment and universal credit form

Sunnyuk5

Hi,

I am going self employed as an IT contractor. I will be the company director but will also be paying myself a monthly salary via PAYE. So HMRC will get a monthly income feed from my accountant.

However, when talking to universal credit, I am getting conflicting advice. One advisor says I should put in 0 on the monthly self employment UC form, as there is a monthly RTI going to HMRC. Another advisor says to fill it up and see if it causes any duplication due to the monthly RTI to HMRC. And if that does happen, to put in a message on the journal.

I haven't seen the form yet. Let me give you an example I will get £2350 monthly into the business. My accountant will deduct accountancy fees, employer NI, fuel costs. This would then give a gross figure of around £2000 a month. Then whatever the net income from that figure is gets forwarded to HMRC.

How do I do this on the UC form?

calcotti

You will pay yourself A salary which is processed through RTI.

On the last day of the assessment period you will have to make a self employment report to UC. For this you will record all income received during the AP and all expenditure incurred. The expenditure incurred will include the salary costs processed through RTI (gross salary, employers NI etc.).

https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/how-to-report-your-earnings-from-self-employment

Your UC calculation prepared by UC will show two sources of earnings.
employed earnings - this is the net amount reported through RTI
self-employed earnings - this is the difference between the business income and expenditure

Sunnyuk5

Thank you for the response @calcotti. When doing a change of circumstance on the Universal Credit portal, I've put down myself as self employed. But there was another option that had employed and self employed as one option. I'm a bit confused now.