Easy Guide to Reporting Self-Employed Earnings for Universal Credit

Introduction

Are you self-employed and receiving Universal Credit? Understanding how to report your earnings correctly is essential to ensure you receive the support you need. This guide will walk you through the process of reporting your self-employed income, including key deadlines and calculations. If you find yourself needing assistance, Contend’s highly trained AI legal experts are here to help you navigate your legal concerns with ease. Discover how to manage your Universal Credit reporting and get the guidance you need with Contend, the Easiest Legal Help in the UK.

Understanding How to Report Your Self-Employed Earnings for Universal Credit

If you are self-employed and receiving Universal Credit, it’s important to keep track of your earnings and report them to the Department for Work and Pensions (DWP) every month. Here’s what you need to know to ensure you get the support you need without any hiccups.

What is an Assessment Period?

Your Universal Credit payments are calculated based on an ‘assessment period’, which usually lasts one month. This period begins on the same date each month, starting one month after you submit your application. For example, if you applied for Universal Credit on November 8, your first assessment period would run from November 8 to December 7. You would need to report your earnings for this period between December 1 and December 21.

Reporting Your Earnings

You can report your earnings for the month starting seven days before the end of your assessment period and up to 14 days after it ends. It’s crucial to remember that the DWP will not send you reminders, so make sure to keep track of your reporting dates.

What If You Miss the Deadline?

If you can’t report your earnings on time, the DWP may estimate your payment based on your previous earnings. However, you must have a valid reason for the delay, such as being hospitalized. If you don’t have a good excuse, your Universal Credit claim may be paused until you report your earnings. It’s best to contact the DWP as soon as possible if you’re late.

You can reach the Universal Credit helpline at: – Phone: 0800 328 5644 – Welsh language: 0800 328 1744 – Textphone: 0800 328 1344 – Relay UK: 18001 then 0800 328 5644 (for those who cannot hear or speak on the phone)

How to Calculate Your Earnings

To determine your earnings for the assessment period, follow these steps:

1. Calculate Your Income: Add up all the money your business has made during the assessment period. This is known as your ‘receipts’.

2. Deduct Your Expenses: Subtract any business-related expenses. These can include:

3. Income tax and National Insurance contributions you’ve paid.
4. Pension contributions.
5. Permitted business expenses like stock, equipment, rent, insurance, and vehicle costs.

Vehicle and Home Use Expenses

• Vehicle Costs: If you use a car for business, you can deduct a flat rate for each mile traveled. For a motorcycle, it’s 24p per mile; for cars, it’s 45p per mile for the first 833 miles and 25p for any additional miles.

• Home Office Expenses: If you work from home, you can either calculate the actual costs or use flat rate deductions based on how many hours you worked at home:

• 25-50 hours: £10
• 51-100 hours: £18
• More than 100 hours: £26

Reporting Your Earnings Online

You can report your earnings through your online Universal Credit journal. If you also have income from an employer, be sure to report that as well.

What If You Don’t Make a Profit?

If your business doesn’t make a profit in a month, you still need to report your income and expenses. Any losses can be deducted from future profits, which may increase your Universal Credit in the future. For example, if you report a loss of £500 one month and a profit of £800 the next, your profit will effectively be calculated as £300 for Universal Credit purposes.

After Reporting Your Earnings

Once you report your earnings, the DWP will review them and determine your Universal Credit amount. They aim to process payments within seven days after your assessment period ends.

Conclusion

Reporting your self-employed earnings accurately is crucial for receiving the right amount of Universal Credit. Keep track of your assessment periods, report your earnings on time, and don’t hesitate to reach out for help if you need it. For personalized guidance, consider trying Contend’s legal expert chat. Contend’s highly trained AI legal experts will work with you to provide the support you need to understand and resolve your legal problems. For more information, you can visit the Universal Credit website or contact the Universal Credit helpline.

For more info, check out some of our related articles:

• UK Guide: No Income While Self-Employed? Here’s Help
• Fair Redundancy & Universal Credit for UK’s Self-Employed
• Guide to Changing Universal Credit Commitments for UK Claimants
• Universal Credit Guide: Eligibility, Applying & Tips in the UK
• Navigate Universal Credit Changes: Get Legal Help & Tips in the UK