Universal Credit - The End of Small Businesses?

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Universal Credit - The End of Small Businesses?
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JohnB

Joined: 09 Jul 2005
Posts: 685
Location: Beautiful sunny West Wales!

Posted: Sat Apr 13, 13 5:21 pm Post subject:

Hairyloon wrote:

Loan repayments are presumably classed as expenses.

Not according to the article: "Repayment of capital or interest on a loan is not a permitted expense".

Hairyloon

Joined: 20 Nov 2008
Posts: 15433
Location: Today I are mostly being in Yorkshire.

Posted: Sat Apr 13, 13 6:48 pm Post subject:

JohnB wrote:

Hairyloon wrote:

Loan repayments are presumably classed as expenses.

Not according to the article: "Repayment of capital or interest on a loan is not a permitted expense".

Well that is just silly then... never mind, we will just have to be a touch more creative...

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Sat Apr 13, 13 7:00 pm Post subject:

Hairyloon wrote:

JohnB wrote:

Hairyloon wrote:

Loan repayments are presumably classed as expenses.

Not according to the article: "Repayment of capital or interest on a loan is not a permitted expense".

Well that is just silly then... never mind, we will just have to be a touch more creative...

Or disruptive. They've barely started the trial yet, never mind set the process in stone. They can only manage with the resources they have, which isn't a lot.

Hairyloon

Joined: 20 Nov 2008
Posts: 15433
Location: Today I are mostly being in Yorkshire.

Posted: Sat Apr 13, 13 7:10 pm Post subject:
It is supposed to come into force on the 29th.

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Sat Apr 13, 13 7:18 pm Post subject:
Only for new claimants in the 'pathfinder' trial in the North-West. They're starting off with a tiny sample size so that they can administer it manually should the systems fail, as they did at the RPA when they brought in Single Farm Payments ten years ago.

john of wessex

Joined: 18 Jun 2007
Posts: 2130

Posted: Sat Apr 13, 13 7:20 pm Post subject:
The 'pathfinders' also is basically for unemployed single people with no housing costs............

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Sat Apr 13, 13 7:24 pm Post subject:

john of wessex wrote:

The 'pathfinders' also is basically for unemployed single people with no housing costs............

Exactly. If it works when it goes live in October, it'll be a miracle (and they know it).

jamanda
Downsizer Moderator

Joined: 22 Oct 2006
Posts: 35059
Location: Devon

Posted: Sat Apr 13, 13 7:33 pm Post subject:
Who are "they"?

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Sat Apr 13, 13 7:35 pm Post subject:
The people who are faced with the task of implementing it, civil servants & ministers.

john of wessex

Joined: 18 Jun 2007
Posts: 2130

Posted: Sat Apr 13, 13 7:55 pm Post subject:
Funnily enough on another site I came across a posting from someone who was seconded to work on Universal Credit. I wont quote it to protect his identity, but he basically says that theres no way on gods earth it will be ready in October

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Sat Apr 13, 13 9:46 pm Post subject:
Yes, I don't think they'd have given themselves until 2017 if they thought it could be ready that quickly.

john of wessex

Joined: 18 Jun 2007
Posts: 2130

Posted: Sun Apr 14, 13 6:40 am Post subject:
I dont think it will be complete evem by 2017

gray_b

Joined: 24 Jun 2011
Posts: 254
Location: Leafy Shires of the Midlands

Posted: Sun Apr 14, 13 8:35 pm Post subject:

I have only just caught up with this hot topic.

But presumably we (self employed) will have to run 2 separate accounts books, one for HMRC and one for UC.

Typically van mileage for UC will only be a flat rate, but with HMRC its down as on receipts.

With my business which is very much linked to the weather, I can earn virtually nothing from November to March, but then make hay whilst the sun shines for the rest of the year. So they will say its not a viable business over the winter months ??

This is going to be a nightmare

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Sun Apr 14, 13 8:47 pm Post subject:

gray_b wrote:

With my business which is very much linked to the weather, I can earn virtually nothing from November to March, but then make hay whilst the sun shines for the rest of the year. So they will say its not a viable business over the winter months ??

Just 'invest' the hay during the summer months into something that can be sold, preferably at a profit, during the winter months (hay is a good one, actually).

john of wessex

Joined: 18 Jun 2007
Posts: 2130

Posted: Mon Apr 15, 13 8:15 pm Post subject:

E-mail to my MP, David Heath - Secretary of State for Agriculture

Dear Mr Heath,

I have been looking at this summary of Universal Credit and what it means for the self employed

https://www.permaculturehouseintotnes.co.uk/1/post/2013/03/universal-credit-and-the-self-employed.html

I am advised by those who have worked on this aspect of Universal Credit that it is accurate.

As Secretary of State for Agriculture, I would be interested to know what you opinions are on the effect that it is likley to have on seasonal businesses such as farming, tourism and related areas.

There is a clear intention to take benefits away from those who are not in gainful self employment. I note however that there are a large number of profitable businesses eg Retail (Top Shop, Amazon, Starbucks, Tesco's) who seem to make reasonable profits, avoid Tax but not pay their staff a living wage. If you are to withdraw benefits from self employed workers who do not make a reasonable income, should you not, by the same token be making profitable businesses pay their workers at a level that means they do not require state support.

As a taxpayer, I resent having my taxes used to support employees whose employers do not pay a living wage.

Please can you advise me if you propose to take any action on this.

Yours Sincerley

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