I was made redundant last year due to Covid, and decided to go freelance as a designer (sole trader). I also thought it would be wise to register for Universal Credit. What I dont know is when submitting my Universal Credit, it asks for income - catagorised as ALL income for the business as a whole and then asks for deductions. Until now I have assumed that my actual drawings are irrelevnat due to the wording on the website, but curiousity has been eating away at me - do I list my drawings as a deduction out of the main income?
Total Recipts/Income for Month: £2,000
Total Expenses (ex. actual drawings): £200
Amount UC worked out on: £1800
OR - should I be deducting my actual drawings from the income amount - as I am not actually taking all the money that comes in, as per example below;
Total Income: £2,000
Total Expenses: £200
Amount UC worked out on: £2,000 - (£200+£1000) = £800
I just want to ensure I am claiming all that I am entitled to, as things are getting tough at the moment (as they are for many), and the difference in assistance I get in the above scenarios is huge and would have a much needed impact on our monthly household income.