minimum income

tomtom256

sammyjammy said:

It would seem that you are not gainfully self employed for UC purposes, are you seeking employed work as well?  Maybe its something to consider.

He is gainfully self-employed or wouldn't have the MIF applied. MIF is applied for all GSE after a 12 month startup period, if elgible for one.

poppy12345

If your earnings are more than £1,227.50 then the deductions will be based on your actual earnings so no, it doesn't mean you'll be entitled to more UC. We seem to be going round in circles here.

sammyjammy

tomtom256 said:

sammyjammy said:

It would seem that you are not gainfully self employed for UC purposes, are you seeking employed work as well?  Maybe its something to consider.

He is gainfully self-employed or wouldn't have the MIF applied. MIF is applied for all GSE after a 12 month startup period, if elgible for one.

Technically yes but I would say that the MIF is to test gainful self- employment hence the 35hours x min wage 

calcotti

uberdriver95 said:

thank you everyone for your responses,

yes I am gainfully self employed hence I have the MIF in place. I been stressing all day. I have come to the conclusion that the balance at the end of deduction has to be 1227.50 or greater in order for my UC award to be higher. is this correct?

No. As previously explained

calcotti said: I think you are still missing the point. The MIF doesn't mean you have to earn anything in particular - it simply means that if you earn less than £1227.50 you are treated as if you have. Whether you earn nothing or £1227.50 (net) will make no difference to the amount of UC you get because UC will take your earnings as £1227.50 anyway. If you earn more than £1227.50 (net) then the actual figure will be used.

And if the earnings are higher then the UC will be less.

calcotti said:
If, before the MIF was applied, earnings of £554.57 resulted in UC payable of £746 that suggests that with the MIF of £1227.50 in place you will never get UC of more than £322/month.

calcotti

sammyjammy said:

tomtom256 said:

sammyjammy said:

It would seem that you are not gainfully self employed for UC purposes, are you seeking employed work as well?  Maybe its something to consider.

He is gainfully self-employed or wouldn't have the MIF applied. MIF is applied for all GSE after a 12 month startup period, if elgible for one.

Technically yes but I would say that the MIF is to test gainful self- employment hence the 35hours x min wage 

The test for gainfully self employment is how the claimant uses their time. The expectation is that if they are treated as gainfully self employed (and therefore not required to jobsearch) they will earn as you say but that isn’t the test. The OP’s problem is they are simply not earning enough from their self employment activity.

theoretica

uberdriver95 said:

thank you everyone for your responses,

yes I am gainfully self employed hence I have the MIF in place. I been stressing all day. I have come to the conclusion that the balance at the end of deduction has to be 1227.50 or greater in order for my UC award to be higher. is this correct?

No - but hopefully if you are earning 1227 or more you will have less need for the UC award they are no longer giving you.

Grumpy_chap

uberdriver95 said:

calcollti

now that you know my MIF is set at 1227.50

my car payment is 800 next month

fuel is 250 and mobile 40

how much should I earn in Uber?

Surely, you want to earn as much as you can - but not at the expense of so many hours as to kill yourself in the process.

calcotti

I don’t know the process for asking UC to stop treating you as gainfully self employed. There are poster on the forum who will know the answer but they post less frequently so you may need to wait a bit for an informed reply.

if UC agree to treat you as a jobseeker instead of self employed you will need to sign a new claimant commitment which requires you to spend an agreed number of hours per week looking for work and you will need to provide evidence of this activity in order to maintain your claim.

tomtom256

uberdriver95 said:

I have done a lot of thinking these past 12hrs. maybe it's time to stop being self employed and look for a job with a hourly wage. I know how to stop being self employed. I know if I was to reach the MIF and clear expenses I will have to work day and night. my knee pain is bad already and I have a swollen lower back. after a long driving shift my legs cramp and stiffen.

what do I tell dwp once I change my employment status to looking for work? do I say I stopped self employment because I can't keep up with the MIF rule?

it's 2am and I'm awake...

You would just report a change of circumstances to say you are no longer self-employed and then attend a new gateway intervention to discuss this, so that a new decision can be made.

Alice_Holt

Re:   https://forums.moneysavingexpert.com/discussion/6305749/minimum-income-floor-is-it-gross-or-net#latest

(Your second thread asking the same Q as this thread)


Neither.   
  The minimum income floor is an assumed level of earnings that the Department for Work and Pensions (DWP) uses to calculate benefit payments for self-employed people.


https://www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/how-universal-credit-payments-work-if-youre-self-employed/

"To work out your minimum income floor, you need to:

1. Multiply the minimum wage for your age group (£8.91 for the over 23's) by the number of hours you’re expected to work

2. Multiply that number by 52 

3. Divide it by 12 to get a monthly figure

The number you’re left with is your minimum income floor. This is also known as your ‘individual earnings threshold’."  

https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/universal-credit-and-self-employment-quick-guide






Your earnings should be taken by UC as 'net'.
 That is self-employed income received in the period, less allowable business expenses during the period.

https://www.gov.uk/self-employment-and-universal-credit

https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/how-to-report-your-earnings-from-self-employment


Note -  From your other thread, you may wish to check with UC that you are correctly reporting your vehicle expenses:

" If you buy or use a motorbike or scooter, or a vehicle that is adapted for business use (such as a van, driving instructor dual-control car or black cab), you can either:

• report the actual amount of expenses you have incurred for your business for the vehicle

• tell us how many business miles you have travelled in the assessment period

If you use a normal, unadapted car (including a minicab), you must tell us how many business miles you have travelled. Read how to report this in ‘Flat rate expenses’

If your vehicle is unadapted, are you telling UC your business miles (rather than vehicle lease costs) ?