Universal Credit Query/thought

Icequeen99

tomtom256 wrote: »

If you declare work but receive nil income for 2 assessment periods, your claim would be suspended until evidence of this odd pay system was provided.

If it was deemed that this payment method was set up to take advantage of the benefit system they would refuse the claim.

The only way to do it would be to setup as a Ltd company and PAYE that way, however they treat all business income - expenses as profit for UC purposes which is then used as income for the award.

Not really sure how a PAYE company could defer a payment for 6 months or why they would want to, as it would potentially cause them issues with HMRC.

tax credits had rules to capture certain types of behaviour to maximise benefit but i can't see UC has anything similar. Under what legislation would they refuse a claim?

In terms of being made to look for work in the intervening period, i don't think they would need to because for conditionality purposes earnings can be averaged over a relevant period.

IQ