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

Zeldazog

calcotti said:

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.

I thought LHA just related to the maximum amount you can get for your cirmcumstances if renting private sector.  I am in social housing.

Zeldazog

Hermann said:

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?

No, because I have no idea what number of hours they would take into account with me also working part-time.  I know I have seen examples of around 32-35 hours for someone not working another job, but wasn't sure what they do if you're working as well.

Hermann

Zeldazog said:

Hermann said:

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?

No, because I have no idea what number of hours they would take into account with me also working part-time.  I know I have seen examples of around 32-35 hours for someone not working another job, but wasn't sure what they do if you're working as well.

My understanding is it's likely to be 35 hours unless you have special circumstances to reduce that, but hopefully someone more knowledge will be along with a more definitive answer.

calcotti

Zeldazog said: 

I thought LHA just related to the maximum amount you can get for your cirmcumstances if renting private sector.  I am in social housing.

You are right - sorry, I should have checked whether you were in social housing or renting privately. Presumably HB already covers all of your rent (unless you have a spare bedroom)

Zeldazog

Hermann said:

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?

Okay, tried again, and if have input it correctly, I would lost all the HB element and most of the basic income.... which was my main fear and hence the question about how soon they might potentially bring that MIF ruling back in.  Given that all my income has been cancelled between now and end June, and it comes from classes and selling, mostly at events, I will struggle to get enough planned in to bring my income levels up - I wasn't at minimum income levels anyway as my business as been slow to build  I am a maker and teacher, and it takes time to build up a following, the trust, connections and confidence in me as an artist needed to get commissions and projects. 

I struggle with that ruling for UC anyway.  Every business advisor I have ever spoke to usually says for businesses starting up Year 1 expect a loss, Year 2 expect break even, Year 3 should be in profit.  And yet UC thinks you should be up and in full earnings profit by the end of Year 1..... not every business works like that - but hey, that's a whole other discussion.

Suffice to say, I think I will avoid migration at all costs.

Zeldazog

calcotti said:

Zeldazog said: 

I thought LHA just related to the maximum amount you can get for your cirmcumstances if renting private sector.  I am in social housing.

You are right - sorry, I should have checked whether you were in social housing or renting privately. Presumably HB already covers all of your rent (unless you have a spare bedroom)

It doesn't currently cover all my rent.  I am in a two bed, and my son moved out a few months ago so I lose the amount for the spare room subsidy, but also, my income is a little bit over my applicable amount, so I lose a bit off that too.

Hermann

Thank goodness you've thought this through!

I think there is an exemption for the first year of self employment called "Start up period" but then MIF kicks in, so Transition Protection is probably more beneficial.

Zeldazog

Hermann said:

No, because I have no idea what number of hours they would take into account with me also working part-time.  I know I have seen examples of around 32-35 hours for someone not working another job, but wasn't sure what they do if you're working as well.

My understanding is it's likely to be 35 hours unless you have special circumstances to reduce that, but hopefully someone more knowledge will be along with a more definitive answer.

I took a guess that they would still want to see 35 hours in total, so did one based on that

calcotti

Zeldazog said:

calcotti said: Presumably HB already covers all of your rent (unless you have a spare bedroom)

It doesn't currently cover all my rent.  I am in a two bed, and my son moved out a few months ago so I lose the amount for the spare room subsidy, but also, my income is a little bit over my applicable amount, so I lose a bit off that too.

You need to report changes in income to your local authority so they can re-calculate your HB. You will still be subject to the ‘bedroom tax’ because of the spare bedroom.

Zeldazog

calcotti said:

Zeldazog said:

calcotti said: Presumably HB already covers all of your rent (unless you have a spare bedroom)

It doesn't currently cover all my rent.  I am in a two bed, and my son moved out a few months ago so I lose the amount for the spare room subsidy, but also, my income is a little bit over my applicable amount, so I lose a bit off that too.

You need to report changes in income to your local authority so they can re-calculate your HB. You will still be subject to the ‘bedroom tax’ because of the spare bedroom.

At the last assessment, which they did based on an accounts report sent to them as asked, they assessed my self employed income as zero, so it's only my part time wages + WTC that's pushed me over my applicable amount, so at this point, no change.  Yup, I know the 'bedroom tax' will always be there, unless I move.