UC expenses + Self Assessment + 30 hours childcare service = all together???

George77

Hi!

I am here to ask for advice and discuss a situation, mainly between the connection of these 3 things:'UC expenses +  Self Assessment + 30 hours childcare service = all together???'.

At the time of COVID-19, I lost my job. I started to be self-employed in early 2021, but just part-time as I am the main carer of my child. My wife is working full time.
Now is the time to do my self-assessment for the period: of 6 April 2021 which ends on 5 April 2022. For the period my earnings were close but a little bit under 10K, so below the PERSONAL ALLOWANCE. Should I make a really proper self-assessment to take all the expenses? Or can I save time and do it simpler as I will not have enough income to pay tax and NI? Another-hand when I reported my UC income and expenses every month, I was accurate and It is included all my real costs.

In the UC my 1st year period will end soon, and in January my income floor will start, there was a preparation period. I work as a fast food delivery driver, so I had got a lot of expensive investments: an electric moped + fast food spec insurance, an electric bicycle, etc. My real profit for the year is less than 1K.

Can I send a self-assessment tax return with the 10K income as profit? Will the HMRC send this data back to the UC? I am just worried about if the HMRC sends it back to the UC and after that, the UC can request repayment from me. Saying to me, UC paid more to us than we were entitled to.

I know if someone employed by the UC got data about earnings from HMRC. Is it the same with self-employed people after a tax return?
 
As all investments are done, so I can start work with the minimum income floor system, I am ready to do. But when my little girl was older than 3 years old (Dec 2021) I have to earn more profit than 660GBP per month for the 30 hours of free childcare. I could not do that in the first part of 2022 as I was more expensive. I can earn the limit now.  

Can I cosmetic the numbers to report less expense in my self-assessment tax return? Anyway, I am under the Personal allowance limit but would not like to repay money to UC.

Last in the row, if I would like to get any future mortgage they will look after my last tax return. So I can lose one more year, but a lot of times mortgage is cheaper than the monthly rent cost.

Thank you for any advice or opinion.

ShirleyW

George77 said:

Hi!

I am here to ask for advice and discuss a situation, mainly between the connection of these 3 things:'UC expenses +  Self Assessment + 30 hours childcare service = all together???'.

At the time of COVID-19, I lost my job. I started to be self-employed in early 2021, but just part-time as I am the main carer of my child. My wife is working full time.
Now is the time to do my self-assessment for the period: of 6 April 2021 which ends on 5 April 2022. For the period my earnings were close but a little bit under 10K, so below the PERSONAL ALLOWANCE. Should I make a really proper self-assessment to take all the expenses? Or can I save time and do it simpler as I will not have enough income to pay tax and NI? Another-hand when I reported my UC income and expenses every month, I was accurate and It is included all my real costs.

In the UC my 1st year period will end soon, and in January my income floor will start, there was a preparation period. I work as a fast food delivery driver, so I had got a lot of expensive investments: an electric moped + fast food spec insurance, an electric bicycle, etc. My real profit for the year is less than 1K.

Can I send a self-assessment tax return with the 10K income as profit? Will the HMRC send this data back to the UC? I am just worried about if the HMRC sends it back to the UC and after that, the UC can request repayment from me. Saying to me, UC paid more to us than we were entitled to.

I know if someone employed by the UC got data about earnings from HMRC. Is it the same with self-employed people after a tax return?
 
As all investments are done, so I can start work with the minimum income floor system, I am ready to do. But when my little girl was older than 3 years old (Dec 2021) I have to earn more profit than 660GBP per month for the 30 hours of free childcare. I could not do that in the first part of 2022 as I was more expensive. I can earn the limit now.  

Can I cosmetic the numbers to report less expense in my self-assessment tax return? Anyway, I am under the Personal allowance limit but would not like to repay money to UC.

Last in the row, if I would like to get any future mortgage they will look after my last tax return. So I can lose one more year, but a lot of times mortgage is cheaper than the monthly rent cost.

Thank you for any advice or opinion.

You are going to tie yourself up in knots trying to keep track of all the different figures you are supplying to different authorities.   Doctoring these figures here, cosmetic adjustments to those figures over there .... etc etc.

During my working life as an accountant I saw many clients who wanted to show one set of figures to the Tax Office in order to pay less tax but a different set to the mortgage company to obtain a bigger mortgage. It never works out.

If you have reported the correct and true figures to Universal Credit, then these are the figures you should report to everyone else.  Not doing so is just storing up trouble for yourself because sooner or later the discrepancies will be noticed. 

George77

ShirleyW said:

George77 said:

Hi!

I am here to ask for advice and discuss a situation, mainly between the connection of these 3 things:'UC expenses +  Self Assessment + 30 hours childcare service = all together???'.

At the time of COVID-19, I lost my job. I started to be self-employed in early 2021, but just part-time as I am the main carer of my child. My wife is working full time.
Now is the time to do my self-assessment for the period: of 6 April 2021 which ends on 5 April 2022. For the period my earnings were close but a little bit under 10K, so below the PERSONAL ALLOWANCE. Should I make a really proper self-assessment to take all the expenses? Or can I save time and do it simpler as I will not have enough income to pay tax and NI? Another-hand when I reported my UC income and expenses every month, I was accurate and It is included all my real costs.

In the UC my 1st year period will end soon, and in January my income floor will start, there was a preparation period. I work as a fast food delivery driver, so I had got a lot of expensive investments: an electric moped + fast food spec insurance, an electric bicycle, etc. My real profit for the year is less than 1K.

Can I send a self-assessment tax return with the 10K income as profit? Will the HMRC send this data back to the UC? I am just worried about if the HMRC sends it back to the UC and after that, the UC can request repayment from me. Saying to me, UC paid more to us than we were entitled to.

I know if someone employed by the UC got data about earnings from HMRC. Is it the same with self-employed people after a tax return?
 
As all investments are done, so I can start work with the minimum income floor system, I am ready to do. But when my little girl was older than 3 years old (Dec 2021) I have to earn more profit than 660GBP per month for the 30 hours of free childcare. I could not do that in the first part of 2022 as I was more expensive. I can earn the limit now.  

Can I cosmetic the numbers to report less expense in my self-assessment tax return? Anyway, I am under the Personal allowance limit but would not like to repay money to UC.

Last in the row, if I would like to get any future mortgage they will look after my last tax return. So I can lose one more year, but a lot of times mortgage is cheaper than the monthly rent cost.

Thank you for any advice or opinion.

You are going to tie yourself up in knots trying to keep track of all the different figures you are supplying to different authorities.   Doctoring these figures here, cosmetic adjustments to those figures over there .... etc etc.

During my working life as an accountant I saw many clients who wanted to show one set of figures to the Tax Office in order to pay less tax but a different set to the mortgage company to obtain a bigger mortgage. It never works out.

If you have reported the correct and true figures to Universal Credit, then these are the figures you should report to everyone else.  Not doing so is just storing up trouble for yourself because sooner or later the discrepancies will be noticed. 

Thanks for your reply. Probably that is the right way. With the UC, It is easy to record all cost and expenses in a month's time and do it every month. So that are correct and true figures. I will not pay taxes,  I work just part-time and my earnings were less.

L_Volunteer

Hi @George77. You are welcome for our replies. Our replies are the very least you deserve. 

How are you feeling about things now after talking them through a little with us? Please don't hesitate to let us know if we can do anything else to support you.

We are all here for you and listening to you. You don't have to face this, or anything else, alone if you don't want to.

Take care for now and we will look forward to, hopefully, hearing from you again soon