universal credit

uberdriver95

I am stuck with minimum income floor.

Caz3121

this link may be useful https://www.litrg.org.uk/tax-guides/self-employment/how-do-i-work-out-my-profits-universal-credit#permitted-expenses
in particular - No deductions are allowed for: Expenditure on the purchase, lease or use of a car (see below for details of flat rate expenditure that can be deducted)
assuming your profit after allowable expenses is under the MIF then the MIF will be used instead
this was covered in your previous thread https://forums.moneysavingexpert.com/discussion/6305430/minimum-income-floor-before-or-after-expenses/p1

poppy12345

You had your earnings but expenses were taken from those earnings so you earned less. This means that your UC would be calculated as if you earned £1,227.50, which is correct because of the MIF. I don't see anything incorrect here.

calcotti

uberdriver95 said: please advise me what am i doing wrong. thanks.

What you are 'doing wrong' is not understanding what is meant by earnings.
For UC your 'earnings' are the difference between your income and (allowable) expenditure (what you might call your profit).
Your earnings are below the MIF so the MIF is applied. If your earnings were over the MIF then your actual earnings would be used.

poppy12345

The work allowance is increasing to £335 from December. As well as the taper being reduced to 55% from 63%.

https://www.entitledto.co.uk/help/work-allowance-universal-credit

uberdriver95 said:

suppose that my mif is 1227.50 for each month. then I earn 1230.00 for December.

the I will get 1230 - 293(work allowance)= 937 X 0.63(taper) = 590.31

844.32(entitlement) - 590.31 = 255approx.

it's like a double whammy, no win situation 

Not really because you will then actually have those earnings, rather than the huge amount of expenses, though some aren't allowed anyway.

calcotti

uberdriver95 said:..it's like a double whammy, no win situation 

The point is that if you are self employed then you are not required to look for work but you are expected to earn at least the NMW and are treated as if you do. If you are unable to earn this amount then you have to consider whether your self employment is right for you.

Alice_Holt

" I am a self employed mini cab driver and i work 36 hours a week. I signed up to universal credit before the pandemic started in March 2020. During the the pandemic the Minimum Income Floor(MIF) was suspended. recently from october 2021 my MIF has been applied again at £1227.50 a month.

In october the money in was £1246.52 and expenses was £1135.15 leaving a balance of £111.37

In november the money in was £1545.21 and expenses was £759.10 leaving a balance of £786.11


please advise me what am i doing wrong. thanks."


Earning an average of £2.90 per hour from your self-employment is never going to cover your living expenses. 
As calcotti says you may need to find more remunerative waged employment. 

The MIF is designed to discourage long term self-employment which is neither financially viable or commercially successful.  

baza52

what you are doing wrong is not earning enough money. In your October/nov month you earned just over £20 for 39 hours work on average each week.
Thats a tad over 50p per hour.

Dullville

baza52 said:

what you are doing wrong is not earning enough money. In your October/nov month you earned just over £20 for 39 hours work on average each week.
Thats a tad over 50p per hour.

I can’t believe UC aren’t  investigating this guys claim, as you rightly say Baza how is he getting away with earning £20 a week.
Cant believe his excessive expenses haven’t been probed by the DWP either.

baza52

I see the OP has deleted posts here.
They have asked about this before.

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

https://forums.moneysavingexpert.com/discussion/6305430/minimum-income-floor-before-or-after-expenses#latest

Most cars seem to be a Prius so fuel cost would be low.
Am i the only one that thinks OP is hoping that a low income on paper would result in more benefits and does not realise how it all works?

poppy12345

Comments have also been deleted on their other thread... people spend a lot of time here giving people advice. There's nothing more annoying when someone deletes their comments.