New business no profit first year

AG47

If income is below the individual threshold (including where the business makes a loss) in a monthly period then this artificial income level applies to those who are gainfully self-employed (after the 12 month start-up period).

[Deleted User]

AG47 wrote: »

Thank you so much. If this is true then that's great

Can somebody confirm if this is true?

Errr does the link not show its true?

Gone are the days when you can claim to be self employed whilst maxing out the welfare system 😀

Dasa

pramsay13 wrote: »

I'm not sure about benefits, but if you're working 30 hours a week for a year and there are no profits you maybe need to rethink the business model.

My accountant told me that most don't make a profit in the first three years so there you go.

Dasa

skcollobcat10 wrote: »

But it used to be the case not so long ago where people worked as employees full time and then saved a little to set up a self employed business, not be reliant on benefits to support self employment.

Why shouldn't they get support the same as others on a low income?

[Deleted User]

Dasa wrote: »

Why shouldn't they get support the same as others on a low income?

They do, by assuming they earn minimum wage they're on an equal footing. Previously they could claim £0 wages and max out benefits.

Dasa

_shel wrote: »

They do, by assuming they earn minimum wage they're on an equal footing. Previously they could claim £0 wages and max out benefits.

Yea, but I was replying to the post that was implying self employed should be self-funding and not relying on benefits.

calcotti

AG47 wrote: »

Thank you so much. If this is true then that's great

Can somebody confirm if this is true?

That’s why I included the link in my post, so that you could get more than just my word for it.

huckster

Sounds like the solution is a part time employed position to maintain some independent income, while you try to establish a self employed trade.

After 12 months on UC, you will be subject to minimum income floor (MIF), which is currently assumed net income of about £1100 a month.

From what I have seen, many people really struggle with being self employed on UC. They get themselves into debt and then after a year, when the MIF is applied, they then see nil or reduced UC payments which. they can't live on. Which is why I suggest part time employment as well, so you have some income and can increase hours if your employers offer this, so you can pay for basic living costs.

parkrunner

Dasa wrote: »

Yea, but I was replying to the post that was implying self employed should be self-funding and not relying on benefits.

They don't have to be self funding. Most new start ups are either done on top of a person's existing job to see if it actually works or by presenting a business model to a bank to get finance for the project.

marliepanda

Another fairy story. If anyone else can make a narrative out of the past threads from OP please let us know, because the situation changes from one minute to the next, and this same info has already been given, I'm sure last time it was a cleaning business.