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  • FIRST POST
    • hettyGreek
    • By hettyGreek 17th May 17, 5:38 PM
    • 51Posts
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    hettyGreek
    My Minimum Income Floor starts soon and im way off it - what will happen?
    • #1
    • 17th May 17, 5:38 PM
    My Minimum Income Floor starts soon and im way off it - what will happen? 17th May 17 at 5:38 PM
    The advisor at the jobcentre didn't really know.

    My earnings are almost half of the minimum income floor, if they continue at the current level for the next 12 months. I moved from the New Enterprise Allowance and in my signed off plan it took two years to reach the 10k a year figure and I'm on target.

    Any idea what will happen once this date comes?
Page 1
    • theronstar
    • By theronstar 18th May 17, 2:15 AM
    • 59 Posts
    • 27 Thanks
    theronstar
    • #2
    • 18th May 17, 2:15 AM
    • #2
    • 18th May 17, 2:15 AM
    Your Minimum Income Floor is basically saying what your business needs to generate, in order for you to justify self-employment.

    If you miss the MIF, then the Jobcentre could well say that your self-employment is not viable.
    • Icequeen99
    • By Icequeen99 18th May 17, 12:18 PM
    • 3,453 Posts
    • 2,350 Thanks
    Icequeen99
    • #3
    • 18th May 17, 12:18 PM
    • #3
    • 18th May 17, 12:18 PM
    Once you are outside of the 12 month start-up period, and you are in the all-work requirements group, then the MIF will apply.

    The MIF for most will be 35 hours x NMW - less an amount for notional tax and NI.

    This will be substituted for your actual earnings when calculating your universal credit.

    This will continue as long as you are 'gainfully self-employed'

    See these links for more info

    http://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/self-employment/minimum-income-floor/

    http://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/self-employment/gainful-self-employment/

    IQ
    • hettyGreek
    • By hettyGreek 18th May 17, 3:27 PM
    • 51 Posts
    • 70 Thanks
    hettyGreek
    • #4
    • 18th May 17, 3:27 PM
    • #4
    • 18th May 17, 3:27 PM
    Thanks so much, just had a read and still not 100% sure. Will this mean if I only earn say half of this then all universal credit will automatically be stopped? Or is it discretionary?
    • Icequeen99
    • By Icequeen99 18th May 17, 3:33 PM
    • 3,453 Posts
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    Icequeen99
    • #5
    • 18th May 17, 3:33 PM
    • #5
    • 18th May 17, 3:33 PM
    Thanks so much, just had a read and still not 100% sure. Will this mean if I only earn say half of this then all universal credit will automatically be stopped? Or is it discretionary?
    Originally posted by hettyGreek
    It isn't discretionary except for the fact that they could reduce the 35 hours requirement down if you have a physical or mental impairment, caring responsibilities etc...but the MIF isn't supposed to be discretionary.

    As to whether it will stop UC that depends on your personal circumstances, if you have 3 children, high childcare costs and housing costs it might not stop it. If you are a single person/couple and don't qualify for many elements of UC it could reduce it down to nil.

    The MIF for 35 hours is around £1046 so you would be in the same position as someone earning that amount.

    IQ
    • WillowCat
    • By WillowCat 18th May 17, 10:24 PM
    • 704 Posts
    • 822 Thanks
    WillowCat
    • #6
    • 18th May 17, 10:24 PM
    • #6
    • 18th May 17, 10:24 PM
    Theoretically you can argue that you aren't gainfully self employed. You would then be subject to conditionality with regard to looking for more work/better paid work but the benefit is that your self employed income only would be taken into account and not the minimum income floor.

    This is my interpretation of the legislation, I've not yet heard of a real life example of anyone going down this route.
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