UC and Self Employed Grant Dilemna

janinek

I’m trying to find advice on what to do here.

I have switched to UC from tax credits and  now receive help, also help with my rent. I received £1085 in my first month. 

I can’t work out if even though I can get the self employed grant (probably around £2500k total in my case) it would then stop my UC and even put me in a worse position of having to pay back some or all of my UC. 

My usual income is around 11kPA so ordinarily I would continue to receive UC.

What should I do? Should I carry on just with UC as it is at least stable? I would also imagine that when I am able to go back to work (I’m a massage therapist) it would be staggered and I would be earning my full income as clients will be nervous, of course. 

Thank you

Janine Kitson

Jeremy535897

In your circumstances the grant might stop UC for a month (unless you spend it on business expenses), but probably no more than that. You don't have to pay past UC back, unless it was wrongly claimed in the first place, or you are repaying an advance. If the grant would reduce your UC to zero, you should restart your UC claim as soon as possible. Others are more versed in the mechanics of UC than I am.

calcotti

You will not have to pay back any UC you have already received.

The SEISS will be related as earnings in the assessment period in which you receive the payment. This may result in nil UC payable in that month. If the grant is such that there are ‘Surplus earnings’ the payment may affect the following month as well - in your case if the grant is only £2500 there will be no surplus earnings carried forward. See the bottom two sections of this https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/self-employment/

The SEISS is taxable income but UC is not. Nonetheless I cannot see how receiving SEISS can make you worse off. You will have received a grant of £2500. Even if you later pay income tax on it (assuming you are a basic rate tax payer) you will still have received £2000. You will have ‘lost’ £1085 of UC. You are £915 better off.

Jeremy535897

I thought about surplus earnings, but I'm guessing the quantum of the grant here is unlikely to bring OP into that territory?

algynon123

After 3 months mortgage holiday as I am self employed and due to corona, no work for the foreseeable future.I am on UC but A. will that stop when the £2500 S/E grant is paid and if yes will I have to re apply.
B.what will happen when the 3 months mortgage holiday is up and still no work UC don't help for 9 months  thank you.

calcotti

algynon123 said:

After 3 months mortgage holiday as I am self employed and due to corona, no work for the foreseeable future.I am on UC but A. will that stop when the £2500 S/E grant is paid and if yes will I have to re apply.

Normally if you have a nil UC month the claim is closed. You then log in to your UC journal and make a rapid reclaim. At the moment I believe DWP are not closing claims after one month of nil entitlement. The important thing is to keep an eye on your journal and if you see the claim is closed do the rapid reclaim.
UC never provides such help with mortgage. If you have been on UC for 39 weeks with no earnings you can access the Support for Mortgage Interest scheme which is a government loan - it is not part of UC. In my opinion because of the no earnings rule the SMI is of very limited use.

janinek

Greatly appreciate your response. Thank you!!