Universal credit instead of tax credits

Mersey_2

From the DWP's UC5 (a Guide for Self employed UC claimants, dated 2016), a Claimant is exempt from the MIF in their first year.


Has this changed recently?

Ames

Mersey wrote: »

From the DWP's UC5 (a Guide for Self employed UC claimants, dated 2016), a Claimant is exempt from the MIF in their first year.


Has this changed recently?

Based on a CAB page I read, the exemption is the first year of self employment, not the first year of claiming. So it depends where the OP lives and how long her partner has been self employed.

I also agree with IceQueen, having recently been involved with regulations from an employer perspective it sounds as though the partner is actually employed. Perhaps posting on the employment forum here would give advice on the next steps?

pmlindyloo

I suspect that the OP's partner is a Construction Industry Scheme (CIS)sub contractor where his tax is deducted at source and then he reclaims back any overpaid tax when he does his self assessment.
Don't know how this works for Universal Credit purposes.

https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor

Icequeen99

Mersey wrote: »

From the DWP's UC5 (a Guide for Self employed UC claimants, dated 2016), a Claimant is exempt from the MIF in their first year.


Has this changed recently?

No it hasn't changed - but it is first year of self-employment not first year of the claim. But in your comment above, you said self-employed people were not eligible to claim UC due to gateway conditions, but that isn't correct because it depends if you live in full service or live service area (although after 31 Dec there will be no gateway conditions as no live service from that date)

IQ

Emma300

Yes that’s right
Thank you

Emma300

Thank you for everyone’s replies and advice. We are in a full service area so we can’t get working tax credits anymore as I have already enquired about this and was advised that we can no longer claim tax credits in our area as it’s now universal credit. And yes pmlindloo you are right about the sub contracter thing self employment thing.
Thanks

Mersey_2

Ames wrote: »

Based on a CAB page I read, the exemption is the first year of self employment, not the first year of claiming.

& Pmlindyloo; icequeen


The two are effectively the same for the vast majority of new UC claimants.


As I explained on here 2 years ago when I assisted a self-employed claimant escape from UC and claim WTCs - as she had wrongly been advised by JCP, "there's no such as tax credits anymore - you need to claim UC" - someone who is self employed now does not satisfy the gateway conditions in many areas.



Having just checked the 2017 version of the UC5, it is still clear that the MIF, "will not apply to you as a Universal Credit claimant" in the first 12 months. It also makes clear, however, that, "During that start-up period, claimants must come to interviews every 3 months."


Indeed it's why chair of the DWP Select Committee Frank Field MP said to the DWP & HMRC reps, "Can you write to us on that point, as many of us are still receiving correspondence stating that JCPs and HMRC are still giving out incorrect information on this point of minimum income floor which is worrying current claimants unnecessarily. Surely if someone is a self-employed low earner they'll be in receipt of Tax Credits where there is no MIF. Even for UC claimants who go self-employed there's no MIF in their first year. Also, another Member said JCPs are insisting full-time self-employed UC claimants must attend every month, but again this is wrong. We shouldn't be interrupting someone's working life in that way."


[But I agree in this case with what you say pmlindyloo, icequeen, re full service areas having checked this. Thanks, I'll note that esp from the New Year. I also think pm is right re the subcontractor point - although I do question how many of the currently s/e are actually and many would probably be deemed workers if their employers were ever tested]