UC and self employment

[ButWhatAbout]

I'm self employed and really need to try and claim some universal credits to top up (single parent). The nature of my business is such that I have all the money coming in at 4 specific times a year. Expenses then trickle out throughout the year. That means that for a while I have quite a bit of money in my account which then dwindles down as business expenses/invoices are paid, until the next chunk comes in.

I don't understand how I can declare this to Universal Credits as it's not as simple as deducting expenses from income on a monthly basis, most of that income is earmarked for expenses further down the line.

Does anyone have experience of this/advice?

Thanks..

I've been reading up on this as I'm also self-employed and due to transfer over from tax credits to UC.

From what I understand we have to report our real figures on a specific day every month so your income/expenses will have to be reported within that month rather than being able to do any overall financial year calculations.

I understand your frustration. I have a month every year where I pay a supplier a large amount so my business is in deficit but I don't get paid for the job until the next month.

It's so difficult, isn't it. Do they then count the same money as income several times? As the same money will be in my account for several months, I will use some of it to pay myself each month and some of it to pay suppliers.

It's so odd that the system doesn't allow for this, it must be common for people who are self employed.

No the system is really stacked against self employed people in this way. On the months you have the high income , the high income will be counted but on the months you get zero you will be treated as though you did 35 hours a week on minimum wage. Sorry not to give better news. Google self employment and minimum income floor.

• laughs hollowly.

Sorry its rubbish