Universal Credits - Self Employed

BigAunty

John_Pierpoint wrote: »

It is looking like the government might shoot itself in the foot if it kills off "hobby businesses".
However we all know that there is an unwritten bargain between the unemployed and the government. Unless one is a complete disaster it makes more sense to scratch say £30 a day profit as a self employed van driver, than rot on the dole claiming £60 a week.
...

Isn't the undertaking to make work pay better than benefits?

...

Perhaps its better that true unemployment is no longer disguised by thousands of people selling tat on ebay, cupcakes, face painting, craft fayres,etc?

The government's position is clear - they want the self employed to be more self sufficient from their businesses and less dependent on benefits. They have expressly critiqued the long term benefit dependency it has created.

Before working tax credits, I bet virtually no-one could take themselves off JSA with a hairbrained self employment/hobby business. There was an enterprise scheme in the 80s I believe but that stats show only around 3% of the claimants had successful businesses, according to another poster.

princessdon

If you are investigated can you prove he worked 16 hours a week?

charlotte4940

So whats being said is he is working 20 hours per week and he should be earning the national minimum wage per week and this should be told to hmrc.

so under the new universal credit can a self employed person not work part time hours are they saying people who are self employed should be working full time?

charlotte4940

princessdon wrote: »

If you are investigated can you prove he worked 16 hours a week?

How would this be proved though. what about work that isnt paid for e.g. going to customers homes and giving quotes, delivering leaflets, going to suppliers etc

BigAunty

charlotte4940 wrote: »

So whats being said is he is working 20 hours per week and he should be earning the national minimum wage per week and this should be told to hmrc.

No, currently those who are self employed and in receipt of working tax credits are not required to receive the NMW. Are you even in receipt of WTC? If you aren't getting WTC, then its not relevant. (EDIT, apologies, the OP has already said that they do not receive WTC).

What we are saying is that this is the future expectation for the self employed under UC so he should be aspiring to this now and that £3 an hour for a roofer is totally dismal.

What I am saying is 'is he even truly self employed according to HMRC guidelines?' (Edit - perhaps there's a different policy in the contruction industry?)

charlotte4940 wrote: »

so under the new universal credit can a self employed person not work part time hours are they saying people who are self employed should be working full time?

We are saying read the proposed rules for the self employed under UC. They cover the fact that the self employed are expected to receive the NMW and those that don't may have extra conditionality, such as the signing on like Job Seekers nowadays to find extra employment, or close their businesses if they can't turn a decent profit.

The hours that UC claimants are supposed to work is based on the age of the children - perhaps another poster can clarify the rules around parents and working hours expectations in UC. Find the papers published by the DWP to identify how many hours a couple with a young child are supposed to work and how the self employed who do not earn the NMW are treated.

Unfortunately I don't know the position on childcare.

princessdon

But if he works under 16 hrs a week and you claim childcare you may have to tell them (not sure how it works)

BigAunty

I'm still flabbergasted that there is a roofer claiming to earn £3 an hour in a self employed capacity and only managing a handful of days work a month. I had a quick skim of local roofing jobs and they are offering loads for about £14 an hour.

The OPs hubby appears to be working in a life threatening skilled role for a sum similar to a spotty apprentice. At £57 a week, that's less than JSA....

John_Pierpoint

Any one know how the construction industry sub contractor scheme works?
I have a funny feeling someone might be stopping tax out of that figure that nets out at £3 an hour??.
This roofer needs to find another customer, and if the work is done on the property of a private individual prepare invoices for that individual.
Then the business has lots of customers and the travel costs (and clerical chores) become expenses of the home based business.

BigAunty

I don't know how the construction scheme works, perhaps its outside the employment/self employment guidelines, I don't know.

However, it did occur to me that the OPs husband might be stuffing up his state pension contributions and so I hope he has been earning 3k per annum in the long term, or at least paying the stamp. That's insufficient to be a contribution to credit towards the pension. I think it requires £107 per week earnings though perhaps the OPs hubby was receiving child benefit and this might pay for some years worth of contributions?. The OP should get her hubby to get a pension forecast and see whether he needs to pay for any missing years. I think it costs around £650 per year for missing NI contributions and you can go back 6 years. The govt has increased the years of NI contributions from 30 to 35 to qualify for the full state pension and people who underpay will just get a proportional share.

£3 an hour for a roofer...tsk...

shedboy94

charlotte4940 wrote: »

How would this be proved though. what about work that isnt paid for e.g. going to customers homes and giving quotes, delivering leaflets, going to suppliers etc

Why would he be doing all this when he works for someone, albeit on a s/e basis? Presumably the person he works for owns a business, so surely he is the one who does all the advertising, quotes etc?