Is changing from employed to self employed a trigger

themoomins

I currently work part time and claim WTC & CTC. I am also a carer for my disabled child and a single parent if that makes any difference to my question!



My employment is on shaky ground for various reasons which are nothing to do with my performance as an employee but some issues at their end which I feel may make them terminate the position soon. Prior to this I was married to a higher earner and working self employed, so no claim at all.


My question is if I lose my job and go back to self employment, which would also be part time and take a while to ramp up, is this classed as a trigger to move me to Universal Credit? The detail isn't clear from the guidelines, just that a loss of employment which makes me eligible for JSA would mean moving to Universal Credit.


Incidentally, I couldn't get this as savings to pay ex husbands chunk of mortgage after divorce are too high and as they are in my account, I would be completely ruled out of universal credit whereas I can get tax credits. Bizarre situation really but this small detail could make or break us.


I would rather just have my self-employed earnings and child tax credit but is the removal of WTC alone enough to trigger the move? Thank you advance.

calcotti

No, your existing benefits can continue. If you wanted you could also claim new style JSA which would give you £73.10/week for 26 weeks. It is not means tested.

Obviously you need to keep HMRC informed so that Tax Credit award can be adjusted if necessary.

tomtom256

calcotti wrote: »

No, your existing benefits can continue. If you wanted you could also claim new style JSA which would give you £73.10/week for 26 weeks. It is not means tested.

Obviously you need to keep HMRC informed so that Tax Credit award can be adjusted if necessary.

Could possibly claim new style JSA, if they meet the contribution requirements.


OP does not state how long they have been working for, but does state working part time. so may not have the required contributions to make this type of claim.


As a carer for a disabled child UC may be a better option, but they would need to look into this to see what the requirements of a carer is.

poppy12345

tomtom256 wrote: »

As a carer for a disabled child UC may be a better option, but they would need to look into this to see what the requirements of a carer is.

The OP states that UC isn't an option because their savings rule it out.

themoomins

Hi, thanks for the responses. No, I wouldn't claim JSA as I would be aiming to earn as much as that from my self-employed work (and probably wouldn't qualify) and I also wouldn't be looking for a job so couldn't meet the requirements. I would use some of my savings to top up what I would lose from the working tax credit and childcare payment loss so don't want to claim anything else as long as I can keep claiming the child tax credits without being switched over at the point I (potentially) lose my job. I hope that makes sense.


ETA - or is it possible that I might be able to keep working tax credits too, since I'd still be working, just not for an employer?

themoomins

calcotti wrote: »

No, your existing benefits can continue. If you wanted you could also claim new style JSA which would give you £73.10/week for 26 weeks. It is not means tested.

Obviously you need to keep HMRC informed so that Tax Credit award can be adjusted if necessary.

So even in a Universal Credit area I can keep tax credits if I lose my job? That would be a huge relief.

calcotti

themoomins wrote: »

ETA - or is it possible that I might be able to keep working tax credits too, since I'd still be working, just not for an employer?

Yes, self employed people can get Working Tax Credits but you may have to demonstrate that the self employment is meaningful and viable.