Self employment/tax credits/universal credits

Afternoon all, just looking for a bit of guidance really.
We were newly self employed on 6th Feb this year, and currently claim tax credits.(waiting to hear back from HMRC regarding changes made). As we don't have any history of trading, we don't qualify for the furlough pay which is fair enough. Are we entitled to claim universal credit for self employed? I assume this will replace our child benefit but will we be entitled to any extra or will it be a similar payment? Or will we be worse off? Anybody in a similar position??

Cheers

Adey

Comments

  • Spoonie_Turtle
    Spoonie_Turtle Posts: 8,267
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    Universal Credit is means-tested, based on income and circumstances so employed, self-employed or whatever you can put in a claim unless you have savings over £16000. However it would end any tax credits - you wouldn't be able to go back on TC afterwards - and UC is difficult for SE people in normal times when they impose a minimum income floor (currently suspended due to the impact of the pandemic, but will be reinstated next year).

    Info about how it's all worked out here: https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/how-much-youll-get/
    And specifically re: self-employment here: https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/self-employment/

    You could do a benefit calculation but that will only tell you for the short-term with higher UC allowance and suspended MIF which will all change next year, it likely won't tell you anything about the longer term.

    Alternatively you could look into New-style JSA to see if you meet the NI contributions requirement if you were previously employed, which is not means-tested and is payable for 6montha if you're eligible. That would not affect any current benefits (CB,TC, etc.).
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