Worried about UC and self employment

M.Johnson_2

I am worried about when universal credit comes in I will not be able to afford to live.

I have a part time job 16hrs min wage and am trying to start a self emloyed business as well, so I work min 30hrs week total.

At the moment my business is making no profit, so we get LHA,CTB, CTC, and almost full WTC, plus CB.

We are just under the £500wk benefit cap because we have a largish family few kids and another on the way.

I understand it when UC comes in I will have to make my self employment earn profit the same as 35hrs x NMW per week:eek:

It is just not possible the way the economy is right now. I may get there if I persist through the downturn but who knows how long before we are out of this recession?

So if I am forced to close my S.E business I only have my 16hrs part time NMW job and they will not give me more hours, its doubtful if I will even keep that they are laying people ff all the time.

But am I trying to find out if my situation does not change I keep my part time job and part time S.E but no profit yet, will I still get my £500 wk or how much will I get?

teabelly

I think the idea is that if your s/e business isn't making a profit there is really no point wasting time doing it and claiming benefits. If it isn't paying you NMW for every hour you work then it is a waste of effort. Either make the business pay or get a job that does pay enough to live on.

The profit your S/E business has to make is NMW for each hour worked. UC won't be in for ages yet. It's a fiasco.

Look for a better paid part time job and only spend time on the self employment if it is actually going to make a return. If it isn't the kind of business to make money in poor economic times it's pointless starting it. Start a business that will.

gay_guy

Sorry if your offended by this op but why you having more kids if you can't afford to live right now?

I am sorry but I don't have any sympathy for you, if you want more kids then you can't be in a lot of trouble with money.

Or are you expecting the goverment to pay for all your kids?

flamingo747

gay_guy wrote: »

Sorry if your offended by this op but why you having more kids if you can't afford to live right now?

I am sorry but I don't have any sympathy for you, if you want more kids then you can't be in a lot of trouble with money.

Or are you expecting the goverment to pay for all your kids?

Especially with all the 100% fool-proof contraception available!

iammumtoone

As I understand it (but am happy to be corrected) you don't have to earn minimum wage to keep your business going BUT for UC credit purposes they will assume that your business does and award what will be the equivalent of WTC on that basics. So yes you will be able to keep your business but you wont be getting anywhere near the level of WTC you are now receiving.

It closes a loop hole in the law. It is to stop people claiming they are 'self employed' but in fact they are not actually earning anything. People were doing this to avoid the hassle from the JC and having to sign on.

I am not saying you are one of those people just explaining why I believe the change has come about. I also believe that you are allowed a certain start up period where you will be a paid full WTC as a new business is not going to make a profit straight away. However as the system stands at present a business never needs to make a profit and claimants can claim full WTC indefinitely, this will change.

M.Johnson_2

iammumtoone wrote: »

As I understand it (but am happy to be corrected) you don't have to earn minimum wage to keep your business going BUT for UC credit purposes they will assume that your business does and award what will be the equivalent of WTC on that basics. So yes you will be able to keep your business but you wont be getting anywhere near the level of WTC you are now receiving.

It closes a loop hole in the law. It is to stop people claiming they are 'self employed' but in fact they are not actually earning anything. People were doing this to avoid the hassle from the JC and having to sign on.

I am not saying you are one of those people just explaining why I believe the change has come about. I also believe that you are allowed a certain start up period where you will be a paid full WTC as a new business is not going to make a profit straight away. However as the system stands at present a business never needs to make a profit and claimants can claim full WTC indefinitely, this will change.

Are you saying my only option is to join the dole lines?

Nobody will keep trying to get their business successful if they are getting less than just being unemploed like on jas.

Raggie

M.Johnson wrote: »

Are you saying my only option is to join the dole lines?

Nobody will keep trying to get their business successful if they are getting less than just being unemploed like on jas.

as above this is not meant to "have a go" but lets break it down..


You work 16 Hours Part time and get paid for that...


You then spend the remainder of the week Self employed. (24 hours?)


You get benefits to help make ends meet.


You should be applauded for trying to better yourself, the self employed route can be a route to success.. so go for it..


But why does the tax payer need to subsidise this success.. allowing you to work 24 hours (?) a week doing something you enjoy when you "could" be earning NMW in employment...


people claiming this self employed route has lead to the current desire by the government to close this loophole.


Now the question you should be asking is "how do I make the business a success".. not how do I keep claiming...


Just my 2p's worth


Rags

sulphate

Raggie wrote: »

But why does the tax payer need to subsidise this success.. allowing you to work 24 hours (?) a week doing something you enjoy when you "could" be earning NMW in employment...

Exactly.

It's commendable to try and start up a business but you can't expect the taxpayer to subsidise you.

If you can't afford to run it you need to be looking for a full time permanent job to make ends meet for now. When you have enough saved up to invest in the business, start there. Or, you could work on your business in the weekends/evenings.

iammumtoone

M.Johnson wrote: »

Are you saying my only option is to join the dole lines?

Nobody will keep trying to get their business successful if they are getting less than just being unemploed like on jas.

You are right no ones business is successful overnight, if you read my post you will see I did say that there is a time frame (sorry but I don't know how long) in which you can claim full benefits whilst you are building you business up. If after this time you are not earning enough to support your self then it will be deemed the business is not going to be a success.

DKLS

M.Johnson wrote: »

At the moment my business is making no profit, so we get LHA,CTB, CTC, and almost full WTC, plus CB.

It is just not possible the way the economy is right now. I may get there if I persist through the downturn but who knows how long before we are out of this recession?

There are plenty of small companies and one man bands doing very well in the current economic climate that is if you have a good viable business model.


Realistically do you have a viable business model?, 25 hours a week doesn't seem much to build a business.

Morlock

sulphate wrote: »

It's commendable to try and start up a business but you can't expect the taxpayer to subsidise you.

However, there are plenty of businesses making billions each year and the employees are subsidised by the taxpayer. But that's just fine.