Universal Credit - Self-Employed Floor Cap

Bungle12

I am self-employed and the floor cap has now kicked-in (so they calculate what I would get if I worked for someone else (minimum wage) and use that figure as if thats what I earn.  I still have to put my figures in each month but as it is less than the cap they use the higher figure.  It started a few months a go now and when we received the money it was half what we were getting before, which was hard.  The month after I put my figures in again and we received even less money although my husband earned slightly less that month.  My husband put a note in the journal and was told it was computer generated so couldn't be wrong.  We tried again and was told I had earned slightly more that month and it was right.  My earning slightly more wouldn't make a difference unless it had gone over the cap which it hadn't.  In the end my husband went in to see them was told it could be wrong but when he showed the figures and the calculations she said she would get back to us.  After a few days she did saying she couldn't get it to work out and had to pass it on for someone to look at.  It has been a few months just wondered if anyone else has this problem?  

Yamor

Compare the two month's statements, and see where the difference arises. That could give you a clue...

Bungle12

Thank you.  Good advice.  I did do this and I had earned slightly more but not enough to make it more than the cap so shouldnt have made any difference to the figures they used because its capped unless I earn more than the cap.  The nice lady on the desk couldnt make it balance either I was just wondering if anyone else had the same issue.  

R200

It used to be the first year of self employment the floor didn’t apply? Most new businesses struggle to make much in the first year. Is that the case?

its terrible if they assume you earn minimum wage as profit the first year?

sheramber

R200 said:

It used to be the first year of self employment the floor didn’t apply? Most new businesses struggle to make much in the first year. Is that the case?

its terrible if they assume you earn minimum wage as profit the first year?

The OP may have been self employed for more than a year. 

The reference to a few months ago is for the minimum cap operating.

Yamor

Bungle12 said:

Thank you.  Good advice.  I did do this and I had earned slightly more but not enough to make it more than the cap so shouldnt have made any difference to the figures they used because its capped unless I earn more than the cap.  The nice lady on the desk couldnt make it balance either I was just wondering if anyone else had the same issue.  

Comparing the two statements should still enable you to narrow it down, and show what precisely is causing the reduction in benefit (whether it is correct or incorrect).

If you would like, you can post up anonymised versions of the two payment statements, and we can hopefully advise.

ElwoodBlues

Is your husband self employed as well? There was an issue recently where a bug in UC calculations had led to couples with one self employed being overpaid in certain circumstances. Can't remember the specifics, but there have been a few posts about it on here recently.

ElwoodBlues

https://forums.moneysavingexpert.com/discussion/comment/80272416

sheramber

It seems UC have been working to the corrected system though. 

OP’s argue mento is 

If the cap is £1000 ad the OP earns £500 the cap of £1000 is used. 

If the OP earnings go up to £750 it should make no difference as the cap of £1000 is still used. 

£1000 is added to husband’s income

If his income is less one month then the calculation should be £1000 cap + husbands lower income.
 OP ‘s increased income from £500 to £750 makes no difference to the £1000 cap being added to husband’s lower income. 

Yamor

This could all be cleared up if the OP would just check her last two statements!
She should check the total before any deductions, and the amount of earnings taken into account for each of them.

Bungle12

Thank you all for your useful comments and thank you for the link which is exactly what I was looking for.  
I have checked my statements and and I believe the calculations are wrong and I have gone back to UC but it does appear that the cap is drastically reducing everyone's income.  Will just have to work harder.