Universal credit (self employed) - Do I submit tax as an expense?

[Mummaneedswine]

I am self employed single mum and get universal credit. I've just gone over the tax threshold so need to keep 20% of my earnings back to pay tax. Does anyone know if I put aside the 20% and note it as an expense?

I asked previously and the advisor said he wasn't sure but thinks I can only claim it once paid but it seems odd to be claiming money as "profit" which il have to pay out soon when it's due.

No it's not an expense.

It asks every month if you have paid any tax this month

Tax is not an expense - it is your tax

No, it's not an expense. What makes you think it would be?

You can report (and advised to) any tax or national insurance you pay however only in the assessment period you pay it. Therefore if you had a tax/ni bill of £120 you would report that total figure one a year. You don’t calculate your tax/ni monthly.

it’s not a ‘business expense’ in the tradition sense but it is something you report.

This info is on the UC website
www.gov.uk/self-employment-and-universal-credit

I know it's not an expense but for anyone wanting to collect the correct tax back ready for their bill I didn't know if there was a way to do this. Do most people wait to see what the bill is and pay monthly? I'm new to this but I had been advised to save 20% aside for my tax bill. I can't do this if it's counted as profit

Thank you 😊

I know it isn't an expense but it's something most people account for and put to the side isn't it? I'm not one to wait until I get hit with a bill and think okay how do I pay this. Il be on maternity by the time I pay it so I wanted to put the correct tax aside now so it's not being paid in the future when I don't have the income coming in