Self employed on UC and MIF

sanny234

Hi,
This is my first post here and I’m writing in complete desperation.
I have been claiming UC since 2020 as a joint claim with my husband who works full time, I have 3 children 10,7 and 5.
I was working 8 hours a week until 2022 when I went self employed and opened up a small retail shop with my brother. During the first year the MIF didn’t apply to me but it is due to go on this month, my work coach has told me I am gainfully self employed, which is fine I’ve done everything to prove I am but the problem is the business, because it’s first year in trading hasn’t taken a profit yet, we are breaking even so not taking anything for ourselves yet.
my work coach has said the MIF will still be applied but this will mean I won’t get a penny on my claim. I of course understand that I’m not going to be allowed to still get UC and work in my shop, so I asked if it’s possible to go back to my old job working 12 hours along side the business while my brother and I build the business further.
I was told no, I have 2 options either close my business down and become a job seeker or carry being gainfully self employed with MIF applied, the second isn’t an option because the business isn’t in a position to pay me 25hours a week yet. 

I have seen a lot of people can still be self employed and work along side it so I’m not sure why I can’t? 

I’m so confused about it all and I’m not getting anywhere with my work coach, I just feel so sad that I have to walk away from my business when it’s still so young and hasn’t really had a chance to grow yet. 

I hope some of that makes sense, and sorry for the long post. 

huckster

You cannot close the business down, unless there is a legal agreement with your Brother that would allow you to close it.

The issue is that you were found to be gainfully self employed and allowed the start up year to get to the position where it could pay you 25 hour per week minimum wage equivalent.  

I can see what the Work Coach is saying that you cannot just say that the self employment is not gainful as the business is not yet performing. therefore they just remove the minimum income floor, while you the seek employed work.

If you found employed work for say 16 hours a week and then reported on your claim that you were then both employed and self-employed, you could then ask for the self-employment part to be reviewed.

Once you have employed work of 16 hours a week, you could argue that self-employment is no longer the main employment type.  A Job Centre Work Coach would then have to consider the UC guidance.  And below is from the advice for Decision Makers in regard to UC.

H4022 A claimant is in gainfully S/E where1 for the purposes of UC, the Secretary of State has determined that

1. the claimant is carrying on a trade, profession or vocation as their main employment and
 2. their earnings from that trade, profession or vocation are S/E earnings (see H4012 et seq) and
 3. the trade, profession or vocation is organised, developed, regular and carried on in expectation of profit. In order to be in gainful self-employment for the purposes of UC, 1., 2. and 3. have all to be satisfied. If any of those are not satisfed then the claimant cannot be in gainful self-employment. 1 UC Regs, reg 64 

ADM Chapter H4: Earned income - self-employed earnings (publishing.service.gov.uk)

And if the self-employment is then no longer the main employment, you cannot then be considered gainfully self-employed and the MIF would have to be removed.