Childminder migrating to UC

lynncm

Hello everyone,

Please could someone help with my questions as I have my migration date to move from tax credits to UC later this month?

Q1. When declaring health conditions which affect my work, can I state them on the application but also make it clear that I do not wish to be considered for health-related benefits? I want to continue to work 35 hours a week but was required to show an Occupational Therapist how I would manage/adapt in order to be registered by Ofsted as I have two lifelong conditions.

Q2. Do UC staff have flexibility in arranging dates/times of in-person interview/meetings? 

Q3. On UC, do I need to calculate the actual cost of every meal I provide or would I be allowed to use a reasonable average? As HMRC allow reasonable estimates for the tax return, this was always used as the figures for tax credits.

Q4. Will I need to evidence low-cost expenses like playgroups/bus fare with receipts? As HMRC do not require receipts from childminders for spends under £10, again this was always used for tax credits.

Q5. I understand the MIF is not applicable for a year after migrating. Once it is past that 12 months, how are pension contributions taken into account in calculating UC?

For example, if I earn above the MIF in a UC period and make a pension contribution, does it deduct the contribution fully from what I earned to calculate the UC award, or deduct only that necessary to arrive back at the MIF?

If earnings are under the MIF in a UC period so the MIF is applied, are no pension contributions at all deducted in calculating the UC award?

I've read self-employed and employed are treated differently regarding pension contributions under UC, but the calculators don't seem to show me exactly what to expect.

Sorry for all the questions and thank you very much if you can help!

 

Icequeen1

I don't know the answer to 1 and 2 but in terms of expenses, UC rules don't exactly mirror the tax rules. For example UC has a test of whether an expense was 'reasonably incurred' so even if something is allowable for tax UC could decide differently. You will need to keep receipts for everything you are deducting as an expense. 

In terms of pension contributions, they are deducted in full initially in the calculation but if that reduces your income to below the MIF then the MIF will apply. If your earnings are already under the MIF, then pension contributions won't make any difference as the MIF will apply. 

Spoonie_Turtle

"Q1. When declaring health conditions which affect my work, can I state them on the application but also make it clear that I do not wish to be considered for health-related benefits? I want to continue to work 35 hours a week but was required to show an Occupational Therapist how I would manage/adapt in order to be registered by Ofsted as I have two lifelong conditions."

Unless you claim PIP or DLA then you will be ineligible for a Work Capability Assessment anyway if you earn over 16xNMW per week.

If you do claim PIP/DLA then you could have a WCA regardless of earnings; if found to have LCW or LCWRA it would have a financial effect on your UC:  
For starters, the MIF would not apply to you so your UC would be calculated based on actual income. 
Also if you don't have children yourself, being classed as having LCW/RA would give you the work allowance which is an amount of money disregarded from your earnings so your UC payment would be higher (due to taking a smaller deduction for earnings). 
Plus if found to have LCWRA then your maximum UC award would include an extra element of nearly £400.

Having a WCA doesn't mean you're not allowed to work (apart from the threshold for people not claiming PIP or DLA), it should just mean you get however much benefit you're entitled to without missing out unnecessarily.

lynncm

Thank you both for the helpful information.