Experiences of managed migration from TCs to UC

Yamor

Worth realising though that if the deemed income from the capital under £16k means you are entitled to less than your entitlement was on tax credits, then you should be entitled to a different type of transitional protection, which aims to top up your UC entitlement to the same level as your tax credits.

ElwoodBlues

Yamor said:

Worth realising though that if the deemed income from the capital under £16k means you are entitled to less than your entitlement was on tax credits, then you should be entitled to a different type of transitional protection, which aims to top up your UC entitlement to the same level as your tax credits.

Have you seen that work in practice?

Being self employed on a variable income isn't really compatible with UC because your entitlement is calculated monthly and paid in arrears, and while you can carry forward losses (as they do profits) the Minimum Income Floor is applied regardless. Although you're exempted from the MIF for the first 12 months of your UC claim.

UC requires you to submit monthly business accounts to show your business income and deductible expenses - UC doesn't allow all business expenses - they're a law unto themselves as to what your particular decision maker deems acceptable. So prepare to have to appeal/request mandatory reconsiderations on a regular basis.

You should probably spend the next 12 months trying to stabilise your self employed income to get it as similar as possible month to month. Frustrating that you have to run your self employed business around the benefits system, but that's just how it is if you want to claim them.

Yamor

I can't say I have seen it practice, but I'm pretty confident people will get this, although they may need to push for it.

Agreed about self-employment, it really is horrendous.

However, I don't think you will necessarily have to do MRs/appeals regularly, as most months UC simply accept the figures provided. It will only be when they do a check when they would disagree with how the claimant has treated certain items of expenditure, and you may potentially need to do an MR/appeal.

In practice, although trading through a limited company is treated as being self-employed, it may be worthwhile incorporating as that would allow you to pay yourself a salary each month equal to the MIF, and ensure that 'notional' losses due to the MIF can be carried forward.