Doing casual work while on universal credit

burtons

My boy is on universal credit but he's been asked if he want's casual work with a local gardener but how will this affect his benefit if he gets paid £50 cash in hand.

Sheepski

Well. Officially if he earns £50 and declares it, then his next payment will be reduced by £50x63%. So about £31.5, leaving him better off by the £18.5.

This might be different if he has a work allowance (which is an amount he can earn before the taper of 63% is in effect). This is usually in place if he has a health condition which affects his ability to work, or looks after a child for eg. The work allowances are more than £50 so he'd keep the full amount.

However, unofficially (though I'm in no way advising this) if it's cash in hand then it's likely done so the 'employer' doesn't have to bother with legalities, and it's unlikely the DWP would become aware of a one off. Though of course it is benefits fraud.

Alice_Holt

Tricky one.

Ideally he needs to have documentary proof of his earnings to show UC.
For UC purposes he is then likely to be regarded as self-employed.

The onus will be on him to report it to avoid any suggestions of benefit fraud.

TBH, not sure if the net financial benefit would be worth the potential UC (and HMRC) complications.
Is his work coach reasonable? Would it be worth discussing this with him to see what stance the work coach / DWP would take on these earnings? Is it likely to lead to an employed position?

calcotti

Alice_Holt wrote: »

Ideally he needs to have documentary proof of his earnings to show UC. For UC purposes he is then likely to be regarded as self-employed.

It’s possible to do some self employment without being treated as self employed by DWP for UC. The self employment can be ancillary to employment or work search. Self employment only becomes an issue if the intent is to be ‘gainfully’ self employed in which the work search requirement is turned off but the Minimum Income Floor kicks in after 12 months.

lisyloo

Could this turn into more?
E.g. full time job, gain skills for either proper job or own business?

burtons

lisyloo wrote: »

Could this turn into more?
E.g. full time job, gain skills for either proper job or own business?

No I don't think it can turn into a full time job as I think it's only for the summer months to help with grass cutting. I did wonder why he was paying cash in hand and could he get into trouble if my boy declared it to the jobcentre as he could be working everyday.

bspm1

burtons wrote: »

No I don't think it can turn into a full time job as I think it's only for the summer months to help with grass cutting. I did wonder why he was paying cash in hand and could he get into trouble if my boy declared it to the jobcentre as he could be working everyday.

So is the £50 cash in hand payment per day if he could be working everyday? or is it £50 no matter how many days he works?

That opens a bigger can of worms for both the perspective employer and employee!

Kaylataste

I’m going to go there and say tell your son to try at least a days work,what if he tells UC then he hates the work? Will that mess up his whole claim?