Self Employed/Part Time Employed - UC/WTC/MIF/Applicable amount.....

Zeldazog

Hi

I am one of the seemingly many who is self-employed and part-time employed who cannot get SEISS as less than half my earnings have come from SE during the qualifying years.  Current situation - live alone, still get WTC & HB + CTB.  My business is self employed artist, I sell work and and teach in the private and community sector - so I am poor anwyay   I've tried the Entitled To calculator with any variation of possible hours (I assumed it got confused if less than 16) , but it no longer seems to be able to calculate a comparison if you currently get WTC.  It's saying I would be about £50-55 a week better off with UC but appears not to be taking into account that I get £53 a week WTC, but it is saying that my HB would go up.

My gut is to NOT migrate to UC whilst I still can avoid it, but as I have no income from the business for the forseeable and current outgoings are now exceeding incomings, if I am going to get a bit more, I might have no choice (other than selling a kidney).  So a few questions for both cases really.

1) - I have heard that they're increasing WTC as well as UC.  Does anybody know if they're increasing the applicable amounts as well when calculating HB?  I currently have to pay part towards my rent, part because I am in 2 bed house, and also because my total income exceeds the applicable amount.  So if I get £20 a week more WTC, will that count towards the excess income, or are they raising the applicable amount levels?

2) Any body read anything about how long the MIF suspension will be in place?  How quickly will they bring that back into effect once this is "over"?  I've been in business more than a year - like many businesses, I am sure that not only is this going to impact whilst we are going through self-isolation, but it will take time to build back up again once we come out the other side.

3) If I do end up on UC and eventually MIF rules come back into place, anybody know how they work out the MIF/viability of business if you don't work full time in the business?  I get the impression that it's normally assessed at 30-35 hours, do they just take off the amount of hours you work part-time to calculate the number of hours for MIF?  Or do they say it's not viable if you cannot work it full time?

Many thanks for any help on any of these questions, sorry for several, just trying to work out best course of action.

Hermann

It's impossible to know for certain from your post but it's highly likely a UC claim will utterly decimate you long term, once the minimum income floor returns you could find your self with zero. To get an idea put the hours you declare x National Minimum wage into the calculator as your income.

Entitled to still offers a comparison between UC and tax credits for me, enter yes to tax credits in the "Benefits currently recieved" section then switch between tabs on the results page.

Have seen nothing about the length of time for MIF to be suspended but I think it'll be the absolute minimum, probably tie in with when the furlough and self employed schemes end. 

One big consideration is you lose the right to Transitional Protection if you choose to claim UC, look into that as it's the key to keeping payments long term.

Every set of circumstances I've seen so far has been worse of long term, often reduced to zero support, by claiming UC.

For those in the tax credit system I can only see the current guidance as a trap.

I feel really sorry for those tricked into claiming UC without being warned about the automatic cancellation of the Tax credit claim and associated loss of rights.

Zeldazog

Entitled to still offers a comparison between UC and tax credits for me, enter yes to tax credits in the "Benefits currently recieved" section then switch between tabs on the results page.

I must have missed that box - will check again, thanks

One big consideration is you lose the right to Transitional Protection if you choose to claim UC, look into that as it's the key to keeping payments long term.

Every set of circumstances I've seen so far has been worse of long term, often reduced to zero support, by claiming UC.

For those in the tax credit system I can only see the current guidance as a trap.

I feel really sorry for those tricked into claiming UC without being warned about the automatic cancellation of the Tax credit claim and associated loss of rights.

I knew UC would cancel WTC and there's no going back.  I hadn't thought about the transitional protection either, thanks for that reminder.  And yeah, you have to wonder how much of this is a ruse to get people to migrate.

Thanks for your answers.

calcotti

Your housing benefit will go up after 6th April. if you inform HMRC of your changed income you may get increased Tax Credits payment from April (over and above the potential extra £1000 WTC announced by chancellor). For the time being you will be treated as if your hours have not changed.

calcotti

Hermann said: Have seen nothing about the length of time for MIF to be suspended but I think it'll be the absolute minimum, probably tie in with when the furlough and self employed schemes end. 

The provision to permitting the suspension of the the MIF where applicable is contained in Regulation 2 of the Social Security (Coronavirus) (Further Measures) Regulations 2020
http://www.legislation.gov.uk/uksi/2020/371/made

The regulation has an expiry date of 13th November. This presumably means that all suspensions made under the regulations will end on that date.

Zeldazog

calcotti said:

IYour housing benefit will go up after 6th April. if you inform HMRC of your changed income you may get increased Tax Credits payment from April (over and above the potential extra £1000 WTC announced by chancellor). For the time being you will be treated as if your hours have not changed.

I already get full WTC for my situation (adult over 25 living alone), so other than the increase announced, I don't think I can get any more -  my self employed income has already been fairly low.
So when you say the HB will be going up, do you mean they will be altering the applicable amount?    If they do, this will make a big difference.
Thank you for your response

Hermann

calcotti said:

Hermann said: Have seen nothing about the length of time for MIF to be suspended but I think it'll be the absolute minimum, probably tie in with when the furlough and self employed schemes end. 

The provision to permitting the suspension of the the MIF where applicable is contained in Regulation 2 of the Social Security (Coronavirus) (Further Measures) Regulations 2020
http://www.legislation.gov.uk/uksi/2020/371/made

The regulation has an expiry date of 13th November. This presumably means that all suspensions made under the regulations will end on that date.

Thanks, it all seems to be 'for such period as determined' so possibly could be ended sooner, if considered appropriate?

calcotti

Zeldazog said: So when you say the HB will be going up, do you mean they will be altering the applicable amount?

Yes, the chancellor announced changes to the Local Housing Allowance which will result in increases for most above the previously announced inflation linked increases. The amount of increase will vary by post code so I can’t give you any indication of how much yours will go up.

Zeldazog

Hermann said:

Entitled to still offers a comparison between UC and tax credits for me, enter yes to tax credits in the "Benefits currently recieved" section then switch between tabs on the results page.

Thanks, I went back and tried again, it's now saying that I'd get £25 a week more under UC rules, but it has calculated the amount of HB as about £20 less than I already get, and my CTB as about £4 less than I already get - so that's a difference DEFINITELY not worth changing to UC for.

Zeldazog

calcotti said:

Hermann said: Have seen nothing about the length of time for MIF to be suspended but I think it'll be the absolute minimum, probably tie in with when the furlough and self employed schemes end. 

The provision to permitting the suspension of the the MIF where applicable is contained in Regulation 2 of the Social Security (Coronavirus) (Further Measures) Regulations 2020
http://www.legislation.gov.uk/uksi/2020/371/made

The regulation has an expiry date of 13th November. This presumably means that all suspensions made under the regulations will end on that date.

Hmm, this was my fear.  Doesn't really give people a lot of time to get back on their feet - propping up income is obviously a help for many whilst no business is happening, but I cannot see people jumping straight back to their previous trading levels overnight

Hermann

Zeldazog said:

Hermann said:

Entitled to still offers a comparison between UC and tax credits for me, enter yes to tax credits in the "Benefits currently recieved" section then switch between tabs on the results page.

Thanks, I went back and tried again, it's now saying that I'd get £25 a week more under UC rules, but it has calculated the amount of HB as about £20 less than I already get, and my CTB as about £4 less than I already get - so that's a difference DEFINITELY not worth changing to UC for.

And with a minimum income floor amount?