Currently Claiming, want to become independent.

IEntropy

First post here dont bite my head off.

So I'm 27 years old, and Currently claim benefits, what I claim is child benefit as I'm a Single father, Universal Credit and PiP. I am classed as disabled due to my mental health, personality issues, PTSD and epilepsy.

Do not claim housing as I live in my parents house.

Anyway, I want to provide a better future for my son, be able to move out, have a better quality of life ect. Like I said currently raising my 5year old son, and have been unable to work because of my illnesses stated.

Have been thinking about Opening a Store on eBay. Buying items wholesale and being able to make some margin of profit on resale. It's something I can do from home where my health issues dont hold me back so much.

So the real question I guess, what are the laws on this kind of thing? From what I understand, you may get a 12 month start up period? Not sure what's required, or what that even means, And that you dont have to declare anything until you make £1000 Profit, is this true? If I try this I want to do it correctly.

Are you even allowed to try this while on benefits, cause I cant afford for them to be stopped currently. I haven't even started but I want to be well aware of the risks, regulations involved. For the first several months I'd never make anything near what I recieve in benefit. It would be small stock, small volume sales, profits would be minimal. So if it's against rules and the benefit would get stopped, then it wouldn't be worth the risk as I'd struggle to care for my son, and potentially be even worse off.

If you have some income do they close your benefit claims or do they adjust it and you recieve a lesser amount (cause your own profits from resale should make the difference?) Until your business is built up to where you can live without the help of benefits?

I'm sorry if this is hard to make sense of, I'm very literal and it takes me a while to put what's in my head into words that make sense.

pmlindyloo

Can you please tell us whether you have a limited capability for work element or limited capability for work related activity element as part of your Universal Credit claim?

What does your claimant commitment state?

Thank you.

lindens

IEntropy wrote: »

Have been thinking about Opening a Store on eBay. Buying items wholesale and being able to make some margin of profit on resale. It's something I can do from home where my health issues dont hold me back so much.

So the real question I guess, what are the laws on this kind of thing? From what I understand, you may get a 12 month start up period? Not sure what's required, or what that even means, And that you dont have to declare anything until you make £1000 Profit, is this true? If I try this I want to do it correctly.

Are you even allowed to try this while on benefits, cause I cant afford for them to be stopped currently. I haven't even started but I want to be well aware of the risks, regulations involved. For the first several months I'd never make anything near what I recieve in benefit. It would be small stock, small volume sales, profits would be minimal. So if it's against rules and the benefit would get stopped, then it wouldn't be worth the risk as I'd struggle to care for my son, and potentially be even worse off.

If you have some income do they close your benefit claims or do they adjust it and you recieve a lesser amount (cause your own profits from resale should make the difference?) Until your business is built up to where you can live without the help of benefits?

I'm sorry if this is hard to make sense of, I'm very literal and it takes me a while to put what's in my head into words that make sense.

I dont know about benefits but the tax part about 12 months of £1000 is correct.

have sent you a PM

[Deleted User]

You can work and earn any amount without it affecting your PIP.

Spoonie_Turtle

lindens wrote: »

I dont know about benefits but the tax part about 12 months of £1000 is correct.

have sent you a PM

Not quite - it's £1000 gross income in the tax year, not £1000 profit.

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income#trade

IEntropy

Work and work related activity.

IEntropy

And as for PIP, I believe you're correct because it's not a means tested benefit? But do you have any idea when it comes to Universal Credit?

Thank you for all replies, any info is helpful

Spoonie_Turtle

For Universal Credit, you will have a work allowance of £503 as you don't get help with housing costs.

They will take 63% of any income above that allowance off your Universal Credit for the month.

The income you report is a simple money in - money out = income equation.

You cannot be treated as gainfully self-employed with LCWRA and therefore the UC 12-month start-up period and Minimum Income Floor won't apply to you.

If the work contradicts any of the reasons you were awarded LWCRA it would probably trigger a reassessment - but as the assessment is based on how you are most of the time, I doubt you'd have any problems proving you still meet the criteria. It's just something to be aware of.

^ If I've missed anything, please someone who has more thorough knowledge of the regulations let me know!



I haven't had any experience of this myself, I only know what (most of) the rules say. I am currently applying for LCWRA and I would love to occasionally sell some handmade things (not contradicting my reasons for not being fit for work or related activity) so I will be interested to hear how it goes for you if you do proceed

calcotti

IEntropy wrote: »

And as for PIP, I believe you're correct because it's not a means tested benefit? But do you have any idea when it comes to Universal Credit?

Thank you for all replies, any info is helpful

On UC you will need to declare your income and expenditure to DWP every month. The difference will be treated as your earnings for the month. The first £503 of any earnings will be ignored completely (because you are not claiming help with rent). Any earnings above that will be taken into account and a deduction of 63% of this excess earnings will be made to the UC payable.

Normally, if you wish to be treated as a self employed person, after 12 months your UC calculation would assume that you are earning a certain minimum amount (the Minimum Income Floor) even if your actual earnings are less. However as long as you have LCWRA (or even just LCW) you will not be treated as gainfully self employed and the MIF will not apply.

elsien

I would suggest doing a lot of research before going down the eBay route. It is flooded with people trying to do what you want to do, and is also undercut by suppliers already based in China who can access goods very cheaply indeed.
You have to find a niche that is not already been covered by umpteen other people. Try postIng on the eBay part of the forum. The successful people aren't going to tell you what they are selling that is successful but they may be able to give you a heads up as to some of the pitfalls to watch out for.