Should I switch to universal credit?

DigitalDax

Please explain why you think that?

I have explained it twice already. Please read my previous comments as all of the information is there and I would just be repeating them. Your statements are contradictory and make no sense - almost like you work for UC!
Just for the record, I work A LOT more hours than required and far more than the legal maximum weekly working time limit but like a lot of self employed people, the number of hours put in does not always align with the money coming in. Building a business is like that.

poppy12345

DigitalDax said:

Please explain why you think that?

almost like you work for UC!

I can assure you that spoonie doesn't work for DWP. We do have some members here that do but spoonie isn't one of them.

When did you claim UC because the MIF shouldn't apply for the first 12 months, as spoonie correctly advised.

Spoonie_Turtle

DigitalDax said:

Please explain why you think that?

I have explained it twice already. Please read my previous comments as all of the information is there and I would just be repeating them. Your statements are contradictory and make no sense - almost like you work for UC!
Just for the record, I work A LOT more hours than required and far more than the legal maximum weekly working time limit but like a lot of self employed people, the number of hours put in does not always align with the money coming in. Building a business is like that.

I have read them and your understanding seems flawed.

Which of my statements are contradictory?

Granted UC is much less suitable for self-employed people than Tax Credits turned out to be, and generally much stricter than TC for everyone - a very painful fact lots of people found out early in the pandemic without warning.

NedS

DigitalDax said:

Please explain why you think that?

I have explained it twice already. Please read my previous comments as all of the information is there and I would just be repeating them. Your statements are contradictory and make no sense - almost like you work for UC!
Just for the record, I work A LOT more hours than required and far more than the legal maximum weekly working time limit but like a lot of self employed people, the number of hours put in does not always align with the money coming in. Building a business is like that.

And therein lies the dilemma. The tax payer (UC) will support you building your business for so long (12 months, in this instance) and after that you are on your own. Either your business is capable of making a profit and supporting you (to the tune of 35h/week x NMW) or you may be better off calling it a day and getting a full time job (a LOT less hours, you imply) on minimum wage (for a lot more money, you imply).

Ultimately UC exists to support you whilst you are out of work, not to support your business whilst it is not making sufficient profit to support you. If you still want to pursue the business, do what most other businesses do and take out a business loan or seek investors to invest in the business as the government through UC will only invest in you for 12 months.

pumpkin60

   My partner is self employed and gets tax credits but he only has to work 16 hours a week as he claims the disability element of tax credits. What will happen to him and others when they are forced to migrate to uc.

poppy12345

pumpkin60 said:

   My partner is self employed and gets tax credits but he only has to work 16 hours a week as he claims the disability element of tax credits. What will happen to him and others when they are forced to migrate to uc.

He won't be worse off when he does eventually migrate across because there will be Transitional proctection in place. If you're living with your partner then you'll need to claim UC as a couple because it's a means tested benefit (you should be claiming Tax credits as a couple too, if you're living together)

They will need to report their health condition when they claim UC and provide a fit note within 7 days of this. Assuming they are claiming either PIP/DLA or ADP then they will be referred for a work capability assessment. If they're not claiming either of those benefits then they will need to earn less than 16 x NMW/week to be referred for the work capability assessment.

As self employed they will be exempt from the minimum income floor for 12 months. If found to have either LCW or LCWRA then the MIF won't apply to them, even after the 12 months.

Prunetheroses123

A single friend of mine is due to migrate across from WTC to UC later this year

At the moment runs a self employment business that barely makes £3000 a year, they own their property as parents helped their share of inheritance early to try to help

She barely has any savings and is living hand to mouth with relatives sending money to help meet the bills

Any minor change in her life sends her into a meltdown/anxiety/obsession problems and she barely leaves the house but won’t seek help from health professionals

With the recent energy increases she has stopped eating as much and lost weight

She owns a quarter shares for years in a piece of land which could result in about £18000 the others do not need to sell in a hurry how will these impacts UC  and what will happen when she claims?

NedS

Prunetheroses123 said:

A single friend of mine is due to migrate across from WTC to UC later this year

At the moment runs a self employment business that barely makes £3000 a year, they own their property as parents helped their share of inheritance early to try to help

She barely has any savings and is living hand to mouth with relatives sending money to help meet the bills

Any minor change in her life sends her into a meltdown/anxiety/obsession problems and she barely leaves the house but won’t seek help from health professionals

With the recent energy increases she has stopped eating as much and lost weight

She owns a quarter shares for years in a piece of land which could result in about £18000 the others do not need to sell in a hurry how will these impacts UC  and what will happen when she claims?

It sounds like she should seek some support to help her cope with the move to UC.

The quarter share in the land is capital and must be declared when she claims UC. Under managed migration rules, it will be disregarded for 12 months, after which time a decision maker will need to decide if it can continue to be disregarded or not. They may decide it can be disregarded as she is unable to sell. If not, she will no longer be entitled to claim means tested benefits.

DigitalDax

Either your business is capable of making a profit and supporting you (to the tune of 35h/week x NMW) or you may be better off calling it a day

My business does make a profit and does support me. One of the problems with how UC has been done is the arbitrary calculation deciding what they say I must earn. They haven't looked at my outgoings or how much I actually need to cover my bills - they have lumped everyone together. I don't happen to need to earn 35h/week x NMW but the small amount I got from WTC helped with the current energy price explosion.

I would rather help people in this desperate time and keep the prices for my services/products low. Instead, it would seem they will want me to raise my prices and add to the crisis to meet a calculation they have plucked from wherever they pull these things from.

NedS

DigitalDax said:

Either your business is capable of making a profit and supporting you (to the tune of 35h/week x NMW) or you may be better off calling it a day

My business does make a profit and does support me. One of the problems with how UC has been done is the arbitrary calculation deciding what they say I must earn. They haven't looked at my outgoings or how much I actually need to cover my bills - they have lumped everyone together. I don't happen to need to earn 35h/week x NMW but the small amount I got from WTC helped with the current energy price explosion.

That's a contradiction - either you earn enough to support yourself and don't need means-tested benefits, or you don't. If you needed WTC to help with the rising energy costs then you don't earn enough to support yourself.

DigitalDax said:

I would rather help people in this desperate time and keep the prices for my services/products low. Instead, it would seem they will want me to raise my prices and add to the crisis to meet a calculation they have plucked from wherever they pull these things from.

It's great that you are keen to help your customers by keeping your prices low, but you are doing that at cost to the tax payer if you are receiving benefits to top up your low earnings. Again, means-tested benefits such as UC do not exist to support your customers, some of whom may be very wealthy (or not).