Another Universal Credit question.
It seems to us that answers given by various UC support officer vary according to their own understanding and this is a real challenge.
One of our client has this issue:
Business with 3 shareholders/directors. 2 are PSCs one isn't.
One of the Directors who is a PSC is claiming UC since Covid.
The non PSC director does not receive remuneration since they have their own source of income.
The business has 8 employees.
The business has been making a loss due to COVID restrictions.
What are the rules for the director receiving UC? They are employed, no dividends have been distributed at any point, the business is making a loss.
Some support officers have said that the director should only report their own salaried income but another has indicated that the director needs to report the monthly profits and capital value of the business.
The business provides services to clients and does not carry a stock.
Another adviser from UC has told the client that losses cannot be included.
Client is very confused and concerned as one support officer has informed the client that they will likely loose their UC altogether. The director is a single parent working part-time. The other PSC is working full time and the third is working if required.
We are as confused as the client is. We can't really understand how UC is demanding that this client should declare any business accounts on a monthly basis, when there are 3 shareholders, 3 directors and 8 employees.
That business is not the typical example cited in the legislation relating to UC (ie 1sole director / sole shareholder or the 50/50 partnership.)
That particular director cannot take decisions without approval from the board in any case. The person also became a shareholder a year after the business was incorporated, and was not part of the founder of the original business.
Evidently, we are not expert on UC and it has been quite difficult to understand or interpret UC.
So if anyone has THE answer to this, this would be more than welcome.