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UC self employment tax query

6 replies

bluegreengreenblue · 28/06/2025 14:11

Hello
Wonder if anyone could advise as my partner and I are a bit confused
We have put in a joint claim for UC. I am PAYE so all quite easy, but my partner is self employed. When he did his reporting for the month, it asked only for income in and expenses, so he entered his gross earnings for the month. However the calculation that has come back specifically refers to this as take home pay. It is and yet isn’t since he will need to pay tax on this further down the line.
When we queried this, we were just given the opportunity to submit again, which doesn’t help.
Is there no consideration taken on tax on a monthly basis for the self employed ? Seems a little unfair. And if so how is tax recorded when it has been paid? There are only boxes for income and expenses.
thanks so much in advance if anyone can help :)

OP posts:
thisfilmisboring123 · 28/06/2025 14:16

One of the options when reporting expenses states ‘tax’ so you need to report it there.

ShittyHottie · 28/06/2025 14:18

thisfilmisboring123 · 28/06/2025 14:16

One of the options when reporting expenses states ‘tax’ so you need to report it there.

Surely only if you've actually paid it out though? I'm not sure UC allow you to claim something as an expense before you've spent it. It really isn't great for the self employed tbh.

Misspotterer · 28/06/2025 14:19

Tax is an expense at the time you pay it. So if he pays it in one or two payments he puts it as an expense that month. For self employed on UC it is better to pay your tax monthly. You can set up a weekly or monthly payment plan with HMRC.

thisfilmisboring123 · 28/06/2025 14:21

ShittyHottie · 28/06/2025 14:18

Surely only if you've actually paid it out though? I'm not sure UC allow you to claim something as an expense before you've spent it. It really isn't great for the self employed tbh.

Yes sorry, should’ve stated that.
@Misspotterer has it explained it much better.

Fourmagpies · 28/06/2025 14:30

What @Misspotterer said. You only claim it when paid. Any annual expenses, it's best to change them to monthly to make it smoother. Despite it being obvious that tax would be once or twice a year, UC doesn't seem to cope with it.

bluegreengreenblue · 28/06/2025 17:22

Thanks all! Much appreciated

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