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Thread: For UK girls claiming benefits while self-employed - Universal Credit changes

  1. #1
    God/dess Classy_Katy's Avatar
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    Thumbs down For UK girls claiming benefits while self-employed - Universal Credit changes

    This is worth reading as there are important changes being made, and not for the good...I expect many of us are claiming Tax Credits or Housing Benefit and the like.

    https://www.gov.uk/government/upload...uick-guide.pdf
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    Banned Melonie's Avatar
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    Default Re: For UK girls claiming benefits while self-employed - Universal Credit changes

    ^^^ thanks for this excellent 'catch' ClassyKaty

    The gist of this UK news release is that the UK gov't is attempting to tightly integrate the reporting of 'self-employed' income levels with social benefit eligibility. Unlike the US and other countries where a gov't tax agency and separate social benefit agencies may share annual income data many months after the fact, the UK is proposing that 'self-employed' earnings be reported to HM Revenue on a monthly basis, and ( by conclusion ) that the amount of any social benefits paid to 'self-employed' persons stem from a new benefits agency ( Universal Credit ) will be directly linked to the earnings level reported for the previous month.

    In a broader sense, this UK example offers a lot of 'pluses' from the viewpoint of ( other country ) gov'ts who ( also ) wish to reduce possible 'social benefit fraud'. Unfortunately, it also arguably sets a very bad 'precedent' by requiring that 'self employed' persons calculate their incomes and file a 'tax form' on a monthly basis instead of quarterly or annually. This monthly income reporting requirement, while initially only applying to 'self-employed' Brits who also collect housing benefits, tax credits, cash payment benefits etc., could all too easily be expanded to apply to all 'self-employed' persons ( with monthly tax payments expected if earnings are high enough to disqualify the person from social benefit eligibility ? ).

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    Default Re: For UK girls claiming benefits while self-employed - Universal Credit changes

    Thanks Melonie. The Government is trying to get people off benefits any which way they can...at the moment we have a huge number of people in employment but also claiming benefits and this piece is focusing on the self-employed. The Government is big on making a distinction between "hard working people" and everyone else...here they are basically saying that if you in employment but still need to claim benefits, you are not working hard enough, and they will stop your benefits if your income doesn't improve.

    The department that deals with benefits is DWP (Department of Work & Pensions) and it is to them that they want monthly reporting, Universal Credit is to replace all benefits and roll them up into one. I would like to know if DWP are going to look through our expenses and start saying which should be allowable, which is not their job.
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    Default Re: For UK girls claiming benefits while self-employed - Universal Credit changes

    Utterly ridiculous...making it extremely difficult and complicated for everyone x

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    Default Re: For UK girls claiming benefits while self-employed - Universal Credit changes

    Quote Originally Posted by louise33 View Post
    Utterly ridiculous...making it extremely difficult and complicated for everyone x
    After seven years of very sluggish income growth, governments around the world are hungry for tax revenues.

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