Self employed & universal credit

EmDobs92

My husband an I are very new to this but can’t seem to get the right answer I need.

so we have a new claim for UC but my husband is self employed. Can someone make it easy for me as I seem to be confusing myself completely when it comes to the end of the month for declaring his money. 

He pay himself a wage of 350pw ( £1400pm) everything else goes back into the business. And we delcare all the expenditures.. am I putting that in right or do we have to put all incomings from business and all outgoings including the wage for himself. Sorry if I sound really silly but we’ve never applied for anything like this before an can’t get answers anywhere else an I’m probably making it harder than needs to be 😅 thanks I’m advance 

calcotti

When you say he pays a wage do you mean he is set up as a company and pays himself through PAYE or do you mean he withdraws £350/week? 

If he is not set up as a company then he needs declare all business income and expenditure but would not include what he takes out for himself. For UC purposes his earnings will be treated as the difference between income and expenditure (regardless of what he chooses to take).

if he is set up as a company then the earnings payment (including tax and NI paid to HMRC) is a company expense. The PAYE payment will be reported to UC by HMRC and your UC statement will show both employed and self employed earnings.

There is detailed guidance here

https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide

tifo

UC treat self employment and company shareholder/director as the same, so if he has 100% shares in his company then all remaining money after expenses is seen as income.