How to calculate benefits after working deductions?

cwood12

I just started as a self employed courier. I get paid per drop which varies depending on parcel size. 

My earnings will vary and not be fixed per month. I have to pay my own fuel. 

So will things like minimum floor and 12 month start up period apply to me. I also don't know if this will be a regular job. Might last a month, might last 6 months. 

So how will i/they calculate my UC and HB deductions?

calcotti

You need to report self employment to UC. You will probably have to attend the JobCentre to provide details. 

You will be required to report all income and expenditure each month on the last day of you assessment period. The difference will be taken as your earnings and a deduction will be made from your UC. This is calculated as 55% of the earnings. If you have LCW or LCWRA or have children on the claim you will have a Work Allowance which means that the first. £344 of earnings are ignored and the 55% is only calculated on the amount over £344.

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

https://www.gov.uk/government/publications/universal-credit-work-allowances

The MIF only applies if DWP decide you are gainfully employed. If you are not treated as gainfully employed then you will still be expected to look for employed but the required hours of work search should be reduced to take account of the time spent on self employment. If you have LCW or LCWRA then the MIF doesn’t apply.

You refer to HB but do you mean the housing element of UC?

cwood12

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You will be required to report all income and expenditure each month on the last day of you assessment period. The difference will be taken as your earnings and a deduction will be made from your UC. This is calculated as 55% of the earnings. If you have LCW or LCWRA or have children on the claim you will have a Work Allowance which means that the first. £344 of earnings are ignored and the 55% is only calculated on the amount over 

The MIF only applies if DWP decide you are gainfully employed. If you are not treated as gainfully employed then you will still be expected to look for employed but the required hours of work search should be reduced to take account of the time spent on self employment. If you have LCW or LCWRA then the MIF doesn’t apply.

You refer to HB but do you mean the housing element of UC?

Yes, housing element.

calcotti

So the housing element is just part of the UC calculation. Any deductions are applied to the whole UC award.