Universal credits + Self employment + Working

Kayalana99

Hi Guys,

Currently working part-time with two kids and studying so UC are happy I don't need to increase hours but I have been considering starting up self-employed as well.

My question if anyone has any experience of seasonal income? I appreciate you get the 12 months free but putting that aside for now, do they purely work on a month by month basis that you have your 'min floor' income?

It seems a bit unfair as the work would be seasonal, so I may earn a high amount over 3 months but then the other 9 I would be earning nothing (for pure example) but it seems I would lose out on UC for the other 9 months based on the 'min floor' workings?

&& It is not like you can say I can put money aside from the other months. From my workings if I earn 600 self-employment this works out to an increase of 150 a month...so I would essentially lose by sound of it a lot over the other months for a small increase in income for a few months.

I would not be giving up my job but I would assume that there would still be a min floor based on self-employment on top of this?

Also as they seem to work on a 'cash in' 'cash out' basis per month, if I was to invest 3-4k to start this business up, I assume that I wouldn't be able to say I've only earned X amount, it would be based on gross earnings rather then net as once that month has passed ...etc...?

calcotti

It depends whether you want to be treated as self employed as as employed. If you are employed you are expected to increase your work/earnings if you are below the threshold but these expectations can be reduced to take account of income from secondary self employment. In this situation the Minimum Income Floor does not apply.

If you wish to be treated as 'gainfully self employed' then 12 months after you start self employment he Minimum Income Floor will be applied which means that you will be treated as earning at least this even if your actual earnings are lower.

If the work is seasonal I suggest you better remaining as an employed person/job seeker.

Self employed losses can be carried forward indefinitely to set against actual earnings - but obviously this doesn't help if you never earn over the MIF and it is being applied.