UC Minimum Income Floor

Littlemurf

I wonder if there is anyone out there that could send any helpful advice my way on the situation we find with Universal Credit at the moment. 

My husband and I are both self employed and we have received the 12 month start up period from UC and now they have imposed the minimum income floor. Last month, together we only earnt £1300 so we did not receive any payments as UC see it that we should have earnt £3000 or so irrelevant that we didn't. We use our credit card for fuel and food only and this month we have defaulted on the payment. This month I only earned £800 so we are not even close to reaching what they stipulate. 

We have asked for UC to review the minimum income floor and they have said no. They have also told us they cant help us any further so I am struggling to understand what is the actual point of it? We have no savings left as we used that during lock down (we didn't receive any financial help) so I feel stuck. They have told us to speak to citizens advice who have told us to speak to UC. UC has passed us onto local charities and the council who have all said they don't help people that are self employed.  

We both know that our self employment doesn't earn us enough (at the moment) so we are both busy working full time on our self employed jobs and doing everything we can to try and make it work but we are also applying for full time paid jobs and accept the fact we may have to give up our self employed work if it means we can earn enough to be able to live on. 

We are not stupid, we have worked all of our lives having never had to ask for handouts but we are now in debt and I just cant get my head around the fact that UC wont help us. 

Please be kind with your comments, we're feeling really fragile right now. Thanks  

justwhat

Are you both SE in the same business?
Is the MIF achievable from SE ? 
MIF is not variable so you NEED to hit it. You really don't want to come under MIF rules. Because it is just a headache for SE.
Really one of you needs to get a PAYE job at least until the business can sustain you both.
DWP always seem harsher on SE.
As SE surely you new you would get to this point?(i am also SE, so i am aware of the MIF after 12 months rule )

kaMelo

Claiming self employment just to avoid work searches was widely used with tax credits and despite similar rules on increasing earnings this was rarely enforced (if ever) UC have closed this loophole with the MIF and unless you have caring responsibilities or health conditions, are actively enforcing it.

 The MIF is there to ensure self employed people are running a genuinely viable business that can support themselves. It can seem harsh, especially to those whose business is seasonal who can't average out across the year but those are the rules.THe twelve month disregard is there to enable you to get your business to a position where it is viable.

If you can't earn enough through self employment then you need to look at other avenues like changing your business model or changing to part time and take paid employment alongside it.

Littlemurf

justwhat said:

Are you both SE in the same business?
Is the MIF achievable from SE ? 
MIF is not variable so you NEED to hit it. You really don't want to come under MIF rules. Because it is just a headache for SE.
Really one of you needs to get a PAYE job at least until the business can sustain you both.
DWP always seem harsher on SE.
As SE surely you new you would get to this point?(i am also SE, so i am aware of the MIF after 12 months rule )

We have 2 different business under self employment but neither bring in enough. I was lucky that my husband was earning enough to cover my shortfall each month but he was diagnosed with cancer which he had to take months off (another impact on our income), I took lots of time off to care for him (another impact). This was during our 12 months rule and whilst he has now fully recovered, his business suffered and we have never recovered from the losses. As we have never claimed before we didnt know about the MIF or 12 month rule but we do now! Thanks for your reply, much appreciated.   

Littlemurf

kaMelo said:

Claiming self employment just to avoid work searches was widely used with tax credits and despite similar rules on increasing earnings this was rarely enforced (if ever) UC have closed this loophole with the MIF and unless you have caring responsibilities or health conditions, are actively enforcing it.

 The MIF is there to ensure self employed people are running a genuinely viable business that can support themselves. It can seem harsh, especially to those whose business is seasonal who can't average out across the year but those are the rules.THe twelve month disregard is there to enable you to get your business to a position where it is viable.

If you can't earn enough through self employment then you need to look at other avenues like changing your business model or changing to part time and take paid employment alongside it.

My work is seasonal so it does make it harder. Thanks for your comments, much appreciated.

huckster

If the start up period was interrupted by health and caring issues, was this notified to Universal Credit and Job Centre?

If it was notified then you could complain that the Job Centre have not reviewed the basis of your claim and found out whether application of MIF could be delayed by length of cancer treatment stopping ability to work/develop the business. 

kaMelo

Littlemurf said:

kaMelo said:

Claiming self employment just to avoid work searches was widely used with tax credits and despite similar rules on increasing earnings this was rarely enforced (if ever) UC have closed this loophole with the MIF and unless you have caring responsibilities or health conditions, are actively enforcing it.

 The MIF is there to ensure self employed people are running a genuinely viable business that can support themselves. It can seem harsh, especially to those whose business is seasonal who can't average out across the year but those are the rules.THe twelve month disregard is there to enable you to get your business to a position where it is viable.

If you can't earn enough through self employment then you need to look at other avenues like changing your business model or changing to part time and take paid employment alongside it.

My work is seasonal so it does make it harder. Thanks for your comments, much appreciated.

Seasonal work can be a pain for self employment and claiming UC but it's not insurmountable. If you averaged your profits monthly across the year would the monthly amount be above the MIF?

If so then forming a limited company can help equalise your income across the year.

theoretica

If you are applying for paid jobs, would you be better off to ask UC to treat you as jobseekers, with the job search requirements that brings, rather than as self employed?