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Expenses for Universal Credit earnings
- morna
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3 years 8 months ago #263015 by morna
Expenses for Universal Credit earnings was created by morna
I applied for UC at hte end of October 2020, after my PIP award was stopped. I just learned that I have been successful. (My PIP MR was unsuccessful, so I straight off had the Welfare Rights people apply on my behalf for an Appeal.) At the same time I reapplied for PIP. A week or so later DWP contacted my Welfare Rights Rep. with an offer of Enhanced Daily Living and Standard Mobility, with a review in 2026. I may have already posted this, sorry if I have, but just want to give people hope that its worthwhile fighting for what you think is yours. It has taken me the best part of a year, fighting for both awards and doing nothing else, but I don't regret it.
Now that I have been awarded UC, I'm trying to find out what are allowable monthly expenses which I can set against a hobby which I might make some pocket money from. My CM may not know, so I've asked to be referred to someone who might. I've spent a fair bit of money on stock which I will need to make my offerings.
I'm not expecting anyone to know about this, but worth an ask anyway:)
Thanks for your time,
Morna x
Now that I have been awarded UC, I'm trying to find out what are allowable monthly expenses which I can set against a hobby which I might make some pocket money from. My CM may not know, so I've asked to be referred to someone who might. I've spent a fair bit of money on stock which I will need to make my offerings.
I'm not expecting anyone to know about this, but worth an ask anyway:)
Thanks for your time,
Morna x
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- LL26
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3 years 8 months ago #263031 by LL26
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by LL26 on topic Expenses for Universal Credit earnings
Hi morna,
Well done on your award. That is very good news.
Trading allowances are basically a tax break, and give you a little more money before you have to pay tax. It helps small businesses, especially sole traders and those who earn a little from small trading. However, unfortunately trading allowances do not apply to UC. Whatever you earn will be taken into account by DWP. This may mean that your taxable income and your income for UC are different amounts.
I think you need to be transparent to DWP. They snoop around everywhere, and do cross matching with HMRC. If DWP discover that you seem to be buying and selling things, and the income is not disclosed, this could lead to a very awkward situation. Also be aware that even selling one or two things might suggest to DWP that you are a trader rather than hobbyist.
However, there is no problem with any of these things if you disclose relevant income to UC and HMRC as required.
I hope this helps.
LL26
Well done on your award. That is very good news.
Trading allowances are basically a tax break, and give you a little more money before you have to pay tax. It helps small businesses, especially sole traders and those who earn a little from small trading. However, unfortunately trading allowances do not apply to UC. Whatever you earn will be taken into account by DWP. This may mean that your taxable income and your income for UC are different amounts.
I think you need to be transparent to DWP. They snoop around everywhere, and do cross matching with HMRC. If DWP discover that you seem to be buying and selling things, and the income is not disclosed, this could lead to a very awkward situation. Also be aware that even selling one or two things might suggest to DWP that you are a trader rather than hobbyist.
However, there is no problem with any of these things if you disclose relevant income to UC and HMRC as required.
I hope this helps.
LL26
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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