Universal Credit and Self Employed Earnings Calculation

[Justinkase]

Both myself and my husband have self employed earnings. My husband is ‘fully’ self employed and I work 22 hours PAYE and about 8 hours self employed.

It looks as though we are entitled to universal credit during the coronavirus as my husband cannot work. Having played around with a calculator it also looks like we might be entitled to this further on in the year when I go onto statutory maternity pay (hopefully he will be back at work by then!)

I have read all the government guidance on how to report self employed earnings as I will need to do this during the coronavirus and he will need to do this when he is back at work and I’m on mat leave. The ‘cash in’ and expenses out on a monthly basis makes sense to me but I am confused by the requirement to report tax and NI earnings on your self employed income on a monthly basis.

My husband has been self employed for 10 years and has only ever known what his tax and NI obligations are after submitting his self assessment eg once a year.

How are we meant to calculate tax and NI on a monthly basis in order to report to universal credit? I cannot seem to find any guidance on this at all despite crawling google!

My appointment for universal credit isn’t until 13th May (very long wait!) so I can’t ask them until then but wanted to get prepared in the meantime!

Hi @Justinkase I work for Universal Credit. Each month you will both get a to-do asking you to report your earnings from self-employment even if it's £0.

I don't know what guidance you've been reading but there's no requirement to report tax or NI paid. Only what you take home through self-employment.

You're PAYE earnings will be reported to us by HMRC so you don't need to include those earnings.

Also, I know your appointment isn't until next month but be prepared to get a call sooner. We are working through lists and calling people who have appointments in the future.

If it helps, leave a message in your journal saying what you've said in your OP and somebody will get back to you x

Some people set aside / budget for yearly tax and national insurance payments on a monthly basis. If your husband does this he can offset some of this.

From Gov-Uk

You’ll need to report payments into and out of your business in the assessment period. This includes:
• total amount your business received
• how much your business spent on different types of expenses, such as travel costs, stock, equipment and tools, clothing and office costs
• how much tax and National Insurance you paid
• any money you paid into a pension

Thanks both. @carben @Charlieandthechocolatecake at the moment he puts away about £75 a week to pay his tax and NI bill from 2018-2019 eg at the moment this is going towards the balancing payment due in July which he already knows the total amount for. Will probably submit his self assessment in June time for 2019-2020 at which time he will then know his Jan 2021 bill so will continue to do the same. So am I right in thinking he will declare the money he puts away for these bills to universal credit? Even though they its effectively tax and NI being put away to pay the bill for last years earnings?