advice for potential income drop

hello, looking for some advice please...
My husband is about to embark on a new business venture with a friend and will potentially be taking a salary of 12'500pa for a period of time. I have done all the standard benefit calculators and they all come back with a rough guide of £550 per week universal credit, child benefit and council tax support. We are private tenants and have four children, have no property or savings. 

From my calculations this would work out somewhere between £2000 - £2300 per month benefits plus the salary of just over £1000. Does this seem reasonable to anyone? I'm quite surprised that the take home would be £3200 ish, similar to the take home of a £54'500 pa salary! Is there anything I'm missing or mistaken with? I was expecting benefit help to be much less. 

Many thanks

Replies

  • edited 29 October 2020 at 8:26PM
    Alice_HoltAlice_Holt Forumite
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    edited 29 October 2020 at 8:26PM
    That does seem high, could you show the breakdown of that amount for just UC, i.e
    Basic couple amount;
    Child allowance (were all 4 children born before April 2017?);
    Housing costs;
     Deductions for earnings from total UC entitlement. 

    It would also be helpful to know the age and sex of your children, together with your local housing allowance (LHA). 
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • edited 29 October 2020 at 8:38PM
    calcotticalcotti Forumite
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    edited 29 October 2020 at 8:38PM
    For UC purposes your husband will be treated as self employed. That means that each month he will have to report all of the business income and expenditure and his self employed earnings will be his share of the difference. If he chooses to pay himself a salary through PAYE the salary will be a business expense and he will be treated as having two sources of income - the employed salary and the self employed earnings. Therefore you cannot assume a benefits income based on the salary, entitlement will fluctuate with business cash flow. If some months produce high earnings they could affect more than one month of UC due to surplus earnings rules.
    https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide

    Were all your children born before April 2017?
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • lovebaking123lovebaking123 Forumite
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    This is what the calculator is showing me...
    Universal Credit payment summary (monthly)
    Standard allowance £594.04
    Housing £1,196.69
    Children £752.91
    Total before adjustments £2,543.64
    Taken off for earned income (your salary) £453.39
    Taken off for unearned income (benefits and savings) £0.00
    Total adjustments £453.39
    Total payment for the month  £2,090.25
    (3 children born before April 2017)
  • tacpot12tacpot12 Forumite
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    If you are entitled to c£2200 benefits per month, you are right that there will be no difference in the money you have to live on. However, the benefits cap would result in your benefits being capped at c£1,666 pcm or (£1915 if you live in Greater London). I'm not sure why the benefit calculators have decided that the benefits cap won't apply you. Based on the information you have supplied, I think it will, but its not an area I'm expert in. Others with more expertise will be along shortly. 
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • edited 29 October 2020 at 8:37PM
    calcotticalcotti Forumite
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    edited 29 October 2020 at 8:37PM
    tacpot12 said:
    If you are entitled to c£2200 benefits per month, you are right that there will be no difference in the money you have to live on. However, the benefits cap would result in your benefits being capped at c£1,666 pcm or (£1915 if you live in Greater London). I'm not sure why the benefit calculators have decided that the benefits cap won't apply you. Based on the information you have supplied, I think it will, but its not an area I'm expert in. Others with more expertise will be along shortly. 
    The benefit cap may not apply if claimant is exempted due to being above earnings threshold in previous months. Presumably husband has been in employment up to now. Nor would it apply if husband is drawing a salary of more than £604/month. https://www.gov.uk/benefit-cap/when-youre-not-affected
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • calcotticalcotti Forumite
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    You need to check the Local Housing Allowance which restricts the maximum housing element you can get and may be less than your rent http://lha-direct.voa.gov.uk/Search.aspx
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • Alice_HoltAlice_Holt Forumite
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    tacpot12 said:
     I'm not sure why the benefit calculators have decided that the benefits cap won't apply you. Based on the information you have supplied, I think it will, but its not an area I'm expert in. Others with more expertise will be along shortly. 
        "You’re not affected by the cap if you or your partner:
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • lovebaking123lovebaking123 Forumite
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    calcotti said:
    You need to check the Local Housing Allowance which restricts the maximum housing element you can get and may be less than your rent 
    The calculators I’ve used seemed to have taken this into account as they’ve shown me what the LHA is in our area.
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