Starting work and impact on benefits

astronautoreo

Hello

I'm starting a new job on 1 February. Currently I'm self employed and I earn enough to stay out of the Benefits Cap, thankfully. The world of self employment has been quite unreliable in my field and due to the stress of chasing work, I have pursued an employed role, and thankfully I have been successful.

My question is around how my Universal Credit will be affected in the first month or so.

My assessment period is 27th to 26th. I will start work on 1 February and (I'm assuming, not confirmed, but it's a safe assumption) I'll be paid on 28 February. On 26th February I will be reporting that I did not earn much from self employment. And then my Benefits will be capped. However the reason I won't have earned that much from self employment is that most of that assessment period I will have been working in an employed role and just not paid yet. 

Once I am paid, can I then go back to the DWP and request that they revise my Universal Credit payment for 27 January to 26 February and remove the cap and pay me that extra money I would have got without the cap (obviously also then taking into account my earnings too)? It just seems unfair that I would be subject to the Benefits Cap simply because I haven't been paid yet, but I have actually been working the whole time. If I can do this, do you know how complicated this process is and how long it would take? If I don't get the Benefits I'm entitled to on 26 February, I will struggle to pay my rent and bills in March, even having been paid as I will still be a low income earner and still eligible for Universal Credit even after I start my employed role.

My plan B is to just schedule my invoices differently so that I get paid across the two assessment periods (this current one ending next week, and the next one) and then not be subject to the Benefits Cap. However I would rather avoid this unless I have to, as it's just much better for my finances to put in all my invoices on time.

Thank you in advance. 

HillStreetBlues

Shouldn't you be reporting the change of circumstances on or near the 1st Feb when you start employment.
I can't see how you can reporting on the 26th Feb as a self employed person,  when you will be actually in paid employment.

Spoonie_Turtle

There's a 9 month grace period from the benefits cap if you've consistently been earning enough to be above it.  https://www.gov.uk/benefit-cap/how-earnings-affect-when-benefit-cap-starts

MalMonroe

When you are on benefits, you are supposed to report any change of circumstances immediately. 

Info in this link - https://www.gov.uk/universal-credit/changes-of-circumstances#:~:text=You need to report changes as soon as they happen,the date you report them

Although it says 'as soon as they happen' in the information in the link, I'd report the changes now because you know that they are going to happen on 1 February. No point waiting, as you could well end up being either over or under paid by DWP and end up in a pickle. 

Always better to be safe than sorry, especially where DWP is concerned.

HillStreetBlues

MalMonroe said:

Although it says 'as soon as they happen' in the information in the link, I'd report the changes now because you know that they are going to happen on 1 February. No point waiting, as you could well end up being either over or under paid by DWP and end up in a pickle. 

You can't report a change of circumstances in advance, the system won't let you (I only just found that out).

Spoonie_Turtle

MalMonroe said:

When you are on benefits, you are supposed to report any change of circumstances immediately. 

Info in this link - https://www.gov.uk/universal-credit/changes-of-circumstances#:~:text=You need to report changes as soon as they happen,the date you report them

Exactly, as soon as they happen.  It hasn't happened yet.

calcotti

HillStreetBlues said:

MalMonroe said:

Although it says 'as soon as they happen' in the information in the link, I'd report the changes now because you know that they are going to happen on 1 February. 

You can't report a change of circumstances in advance, the system won't let you (I only just found that out).

That prevents people reporting a change and then having to report that the expected change didn’t take place because something else happened instead. Benefits only want to know about what has definitely happened.

HillStreetBlues said:

I can't see how you can reporting on the 26th Feb as a self employed person,  when you will be actually in paid employment.

Clearly claimants can report self employment and be in employment. Some people do both alongside each other. In any case when somebody ends self employment and they may be waiting for payment for outstanding invoices and this income has to b reported when received.

OP, you should report the start of your employment when it happens using ’Report a change’ of employment details.. I think you you should then post a message in your journal stating that you will no longer be self employed (or that you will only be doing a little self employment as applicable) and that you no longer wish to be treated as gainfully self employed. You may be required to attend the JobCentre for an appointment.

You will need to continue to report self employment income until all of the invoices have been paid (as you know the income is only counted when you receive it.) You may have to continue to report even if the income and expenditure is nil.

i don’t have experience of how this works but they maybe posters later in the day who will know.

As regards the Benefit Cap, your employed earnings will only be taken into account when you receive them. You can’t change that, but spoonie has highlighted the nine month grace period so I think you should be OK (if you haven’t previously fallen below the threshold).

tomtom256

Once you have declared the change, you will need to attend a further gateway intervention , so that a new decision around being gainfully self employed can be made.
Once the change has been reported, it will block payments, until you have attended the appointment and a new decision has been made.

huckster

Yes report change under work and earnings on 1st Feb or as ASAP afterwards. 

If you have ended self-employed work, report change that you are employed. If the self-employment has not fully ended, then report that you are employed and self employed. 

Once you have reported change on your claim, it will trigger a verify action on the job Centres side of the claim. They will then book a 30 minute gateway intervention appointment at the Job Centre which you must attend. This is so they can ensure claim continues on correct basis. Not attending means the claim blocks any further UC payment statement being issued. So better to set some time aside and let job centre know when you could attend.

calcotti

tomtom256 said:

Once you have declared the change, you will need to attend a further gateway intervention , so that a new decision around being gainfully self employed can be made.

How long does that decision normally take? 

Presumably this is a much easier decision for UC to make in a case where someone has obtained employment than in the case of someone who wants to reduce their self employment in order to be a jobseeker. Will OP be expected to take to appointment evidence of the new employment?

HillStreetBlues

calcotti said:

Clearly claimants can report self employment and be in employment. Some people do both alongside each other.

But clearly both need reporting, as OP was just going to declare the SE