Declaring income and expenses for Universal Credit

[cashmere-favourites]

Hi, I was wondering if anyone else here has to declare their income and expenses every month for Universal Credit? I've just started as a business seller and am trying to work out the easiest way to get the information that I need to give to UC at the end of every month.

From looking in the Seller Hub, there are various reports that can be generated. I will also be looking at my bank statement. What I'm struggling with is that UC want the actual amount of income and expenses each month. However, when an item sells on Ebay, I get the payout two days later. So I don't think it's as simple as generating an Ebay report from 1st-30th/31st of the month, as anything that sells in the last two days of the month won't reach my bank account until the following month. So maybe I should generate a report from 1st- 28th/29th of the month? 

I also find it a bit confusing that the payouts are sent with the fees already deducted. Presumably my income is the total sale amount (including postage paid by the buyer), and then I deduct the fees and postage from that. So the amount of the payouts isn't my total income, just my net income. So I need to find the gross sales amounts and declare those as my income.

I hope this makes sense - I'm just trying to get my head around it all and how to do it! It's not easy trying to balance what's on an Ebay report with what's showing on my bank statement. Just wondering if anyone else is in this situation, and how you work out your monthly income and expenses to submit to Universal Credit? Thanks very much for any replies.

[messier44000]

Unless they have offered already, you should be able to request a face to face meeting with UC.

This should help with any questions.

[nigel_paul_wright7557]

Universal cred it doesnt line up with month ends.

So you need to do your accounts between the Universal pay outs dates.

I just did a text document showing income and outgoings and that was enough.

[cobwebcottage]

Hello, you would be best to instruct an accountant to help you with your books. Don't get bogged down with the  payout figure as as you say, it is minus fees and includes postage. Keep a record of your sales and income received from postage, this is your gross income. You will then need your expenses which will include cost of goods, postage, supplies, travel expenses (an accountant will help you with this) Ebay fees ( you can get a monthly report breaking these down) and any other direct expenses you may have. This is just a brief run through and I have no knowledge of UC so please seek some professional advice.

Best of luck with your new business!

[ojewellery]

There are various schemes available that potentially you could get onto.  Its worth talking to the jobcentre plus about.  One used to be called New Deal, but now its rather more obscure.  Essentially in theory you get a one off 12 month window of opportunity to build a business as self employed.  Durring that window, you don't loose benefit, get help and advice with a business plan and staying on track so long as you do a monthly catch up with a work coach.  Hopefully this link is allowed:

https://www.gov.uk/moving-from-benefits-to-work/starting-your-own-business

It takes a little bit of faffing around to find the links relevant to you from the gov UK website, but potentially could give you a real boost by enabling you to reinvest most profits for the first year to find your feet and build a viable business moving forwards.

[marbeck-64]

Hi, l am a market trader and also on universal credit, one week before payment they will request in your universal credit journal to provide this information. I have a book and for every sales made on that day l make an entry and add up to the total sales, likewise for expenses. At the end of each month l total all sales and expenses and petrol costs and input the total at end of the month. Hope this helps.

[magpiecorner1]

Familiarise yourself with the PERFORMANCE section, loads of info there, and all really simple.  You can key in the dates you need.  

I imagine they need your sales and your expenses.  Sales and fees can be found there, and also in the PAYMENTS section.  

Also sign up with HRMC and listen to the seminars, lots of info there about what you can claim and offset.

[messier44000]

More info on expenses you can claim here

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

[gothicrosegallery]

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@messier44000 wrote:

Unless they have offered already, you should be able to request a face to face meeting with UC.

This should help with any questions.

---

Pretty everything UC is done by online journal now. They probably won't respond.

[gothicrosegallery]

For Universal Credit you need to keep two sets of accounts: one which is month to month for HMRC and self assessment, and another which corrosponds with your individual cut off dates for UC.

Also you must check their list of allowable expenses, it is NOT the same for normal self assessment. The DWPs allowable expense list is much shorter than you would expect.

[messier44000]

I have a face to face meeting booked and seeing them in a couple of weeks 

[gothicrosegallery]

---

@ojewellery wrote:

There are various schemes available that potentially you could get onto.  Its worth talking to the jobcentre plus about.  One used to be called New Deal, but now its rather more obscure.  Essentially in theory you get a one off 12 month window of opportunity to build a business as self employed.  Durring that window, you don't loose benefit, get help and advice with a business plan and staying on track so long as you do a monthly catch up with a work coach.  Hopefully this link is allowed:

https://www.gov.uk/moving-from-benefits-to-work/starting-your-own-business

It takes a little bit of faffing around to find the links relevant to you from the gov UK website, but potentially could give you a real boost by enabling you to reinvest most profits for the first year to find your feet and build a viable business moving forwards.

---

And once that 12 month period is up, you must have a business that pays you minimum wage for the hours they detemine you must work. You don't bring in that after 12 months, your business is deemed not viable and you are told to cease self-employment, forced to job search and find traditional employment.

You are then not allowed another attempt at self-employment for another 5 years.

[cashmere-favourites]

Thank you. My Universal Credit actually does line up with the month end as my assessment period is 1st-30th/31st. Quite helpful that it does!

[cashmere-favourites]

Great, thank you!

[cashmere-favourites]

Very helpful, thank you!

[wyntersemporium]

Unfortunately you don't get a face to face with the universal credit bully as all I've had his phone calls.

[messier44000]

I have a face to face meeting with them next week. Maybe just happens in my area

Or

I`ve been a naughty boy and being called to see the head master 😉 

Joking aside. Its more of me being required to present a business plan for 

the coming year/s and show them I am a viable business after WTC ended.

What will be will be.

[wyntersemporium]

I'm losing cash. Going to start charging for postage or up prices. 
don't have the time with looking after mother as well.

but then again I can only claim for a year as they want me to spend everything in my bank accounts especially the large bulk sum my dad left me. 
I spend more on supplies than anything.

that bulk sum will make my pension up when I come to it. 
also they cannot make me work there as have way too many migraines - where I worked in library they said I was always off work and if they'd known I shouldn't have been took on.

[wyntersemporium]

Mines in the middle of the month.

should have left it as working tax credits

hate going into the job centre with my particulars 

always have hated that place nothing but bullies

[littleblackhen]

I have to move onto UC from WTC in April, so Im researching now.  I sell antiques in antiques centres and online.  What I want to know is if I bought an item 17 years ago and it only just sells, how do I account for the cost of the item?  I wont have spent the money in the accounting period so can I still claim it as an expense?  I most often dont have any receipts for items I bought years ago, I have been doing this for 18 years and it started as a hobby back then, although I do have records going back around 14 years. I have around 90 boxes of items in my cellar dating back years.  Also I buy a lot at car boot sales and so dont get receipts, how do I account for these items?