Worried about universal credit and self employment

rogerblack

My understanding is the question of 'HMRC' won't' is not relevant - if the above person is on UC - they cannot at all claim tax credits.
If you are not disabled, and the buisness is not in its first 12 months, the minimum income floor will apply.

Plus, you will be required to seek work if you are not treated as earning >35*NMW/week.

What this means is that in order to be entitled (at all) to universal credit, you either need to earn >35*NMW/week, or be treated as if you were.

Or be required to seek work in addition to your self-employment.

If you are treated as not required to seek work as you're earning 'enough' - this isn't a free pass however.
Any work you do will be treated as if you were earning the NMW, and reduce your UC at that amount.
If you earn 10*NMW over 35 hours - your UC will be reduced as if you'd earned 25*NMW more that week. 150 quit or so.
If you are single, with no housing costs - this will mean no UC for that week.
(assuming that the circumstances don't change over the month)

dankerrysmum

Omg you've got me worried sick now , do you think I'm likely to be prosecuted for ironing for family and friends ?

NYM

dankerrysmum wrote: »

Omg you've got me worried sick now , do you think I'm likely to be prosecuted for ironing for family and friends ?

You won't be prosecuted for doing a bit of ironing for friends and family.

How long have you been self employed and when did you register with HMRC ?

Icequeen99

dankerrysmum wrote: »

Omg you've got me worried sick now , do you think I'm likely to be prosecuted for ironing for family and friends ?

Highly doubt you would be prosecuted. But if they investigate your claim, then you could have an overpayment of tax credits plus possibly a penalty.

You should also make sure you have done everything correctly for the tax and national insurance side of HMRC.

You can't change the past, but you can change things going forward.

IQ

staffsuk

From April 6 I read that you will be expected to be generating a minimum net profit to the equivalent of 24 hours NMW per week - i.e. £156 at the current NMW - or £8112 / year. I'm not sure if holidays are allowed / taken into account with those figures?!

I also read that the self-employed declaring less than that threshold will be asked to show that their self-employment is 'genuine and effective'.

Whether that legislation has been implemented or not I couldn't say - does anyone know? I will start a new thread relating to that specific question.

Just to say also - I read that anyone who is a homeowner - either mortgaged or outright - won't be eligible to claim UC in the same manner as those people are currently able to claim WTC.

That said the likelihood of a Labour government is looking increasingly likely - and they appear to be saying they will 'pause' UC subject to a thorough review.

Icequeen99

staffsuk wrote: »

From April 6 I read that you will be expected to be generating a minimum net profit to the equivalent of 24 hours NMW per week - i.e. £156 at the current NMW - or £8112 / year. I'm not sure if holidays are allowed / taken into account with those figures?!

I also read that the self-employed declaring less than that threshold will be asked to show that their self-employment is 'genuine and effective'.

Whether that legislation has been implemented or not I couldn't say - does anyone know? I will start a new thread relating to that specific question.

Just to say also - I read that anyone who is a homeowner - either mortgaged or outright - won't be eligible to claim UC in the same manner as those people are currently able to claim WTC.

That said the likelihood of a Labour government is looking increasingly likely - and they appear to be saying they will 'pause' UC subject to a thorough review.

If read further up this thread about the new WTC S/E test - the legislation that was implemented was not an hours x NMW test, it just requires the self-employment to be commercial and regular/organised.

And yes, UC is different for homeowners because UC includes Housing Benefit which has only ever been for people who rent. I don't quite understand what you are saying here in relation to WTC.

IQ

rogerblack

Icequeen99 wrote: »

And yes, UC is different for homeowners because UC includes Housing Benefit which has only ever been for people who rent. I don't quite understand what you are saying here in relation to WTC.

IQ

I think what may be being meant is that the treatment of people getting mortgage support is _much_ harsher under UC.
If you are getting help with mortgage interest under UC, and earn even one pound, this stops you getting any help with that mortgage.

Icequeen99

rogerblack wrote: »

I think what may be being meant is that the treatment of people getting mortgage support is _much_ harsher under UC.
If you are getting help with mortgage interest under UC, and earn even one pound, this stops you getting any help with that mortgage.

Yes, i see that part but the 'and outright' confused me as they wouldn't be getting mortgage interest help under UC.

IQ