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Original poster

2nd property - universal credit

8 replies

DD2017 · 22/04/2018 09:45

I'm in a non-UC area just now but want to prepare for when that changes.
I may be about to have redundancy and would like to work part time until LO goes to school.
Having never claimed anything before I'm a bit bamboozled by all!!

I have a 2nd property with £4-£10k equity depending on valuation. I know about the £6k limit on savings and wondered if I'm better putting it into a business?
Can I deduct whole mortgage payment or just interest and can I deduct insurance costs also before the income figure? How does it work for my name/in business name? Is it different for tax credits and UC?
I receive £420pm rent and pay £300pm in mortgage and insurance.

OP posts:
N3wL0gin · 22/04/2018 11:34

Look on HMRC website for Universal credit, self assessment tax?

Original poster
DD2017 · 22/04/2018 20:46

Thanks; I did that and still a little confused

OP posts:
3l3ctricmeter · 23/04/2018 13:07

Universal credit is £73 a week. I believe if you own property and have a mortgage to pay the system has changed so that you have to take out a government loan. However you rent out your 2nd property so you need to fill out the self assessment tax form on the HRMC website or get an accountant to do it for you. If you get made redundant, apply for Universal credit the next day, because it is not back dated. You may find that working part time is not enough to fund your lifestyle in the future. You may also be liable to pay tax if you earn over the amount on website

Viviennemary · 23/04/2018 13:10

I doubt you'll get any tax credits if you own a second property and you will have to work a minimum number of hours before your child reaches school age.

Babyroobs · 24/04/2018 09:14

How much equity is in your second home ? that would be counted as capital for Uc and if you have over 16k you wouldn't be entitled to UC.

Original poster
DD2017 · 24/04/2018 17:35

About £4K... accidental rental as had negative equity when I moved

OP posts:
FruitM0rre · 24/04/2018 17:39

If you get made redundant apply for UC. If you have paid into the system in previous years you should receive it for a certain time period. If you have not found a job by the allowed time, I believe you are then means tested. The job centre should be able to explain.

Original poster
DD2017 · 24/04/2018 20:57

Thanks guys... think a visit to CAB is in order once I find out

OP posts:
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