Migration to UC. Self-Employed and the 'Minimum Income Floor'

SpikeyKitten

Sorted now. Thank you. Deleted for privacy.

rosewalk

If you move to Universal Credit as part of the managed migration process you won't be subject to MIF for the first twelve months. 

SpikeyKitten

rosewalk said:

If you move to Universal Credit as part of the managed migration process you won't be subject to MIF for the first twelve months. 

Is that right? I thought that only applied to new startups rather than established businesses?

But that's a bit of breathing-space if so. A kick up the !!!!!! to build up the business!

NedS

SpikeyKitten said:

rosewalk said:

If you move to Universal Credit as part of the managed migration process you won't be subject to MIF for the first twelve months. 

Is that right? I thought that only applied to new startups rather than established businesses?

But that's a bit of breathing-space if so. A kick up the !!!!!! to build up the business!

All gainfully self-employed people claiming UC as a result of managed migration are eligible for the 12 month start up period, so as long as you can demonstrate that you are taking all reasonable steps to achieve the MIF, then you qualify for the 12 month start up period.

One has to ask though, if you are unsure you can support yourself on a self employed basis, would it not be better to consider taking a regular job which will pay the minimum wage (or more)? Like you say, you have 12 months to turn it around or make a decision to move on.

peteuk

SpikeyKitten said:

rosewalk said:

If you move to Universal Credit as part of the managed migration process you won't be subject to MIF for the first twelve months. 

Is that right? I thought that only applied to new startups rather than established businesses?

But that's a bit of breathing-space if so. A kick up the !!!!!! to build up the business!

On application for UC you’ll be assessed, if they find you gainfully employed the 12 month start up will apply.  What you’ll find is they will try to find ways to boost your buisness.

Spoonie_Turtle

SpikeyKitten said:

It would absolutely kill me to do it, as I have mental-health issues and self-employment has been brilliant for lifting myself up (I was on incapacity benefit previously), but would it be wiser to give up my business and claim UC as sick or unemployed, and look for a PAYE job in order to still be eligible until I 'hopefully' find a job that pays enough to cover everything?

This could be important.  On UC if you are earning on average less than 16xNMW/week you can be referred for a Work Capability Assessment.  (Or you can be referred whatever yout earnings if you receive PIP/DLA/ADP.)  If found to have Limited Capability for Work you cannot be deemed gainfully self-employed and the MIF will not be applied to you after the 12 months (and you won't be required to look for other work either).  You'd still have to report income and expenses but your UC would continue to be calculated on your actual earnings rather than the MIF.

After the WCA there is no restriction on how many hours you can work or how much you can earn, so that wouldn't be a problem like it is for ESA or IB.

poppy12345

rosewalk said:

If you move to Universal Credit as part of the managed migration process you won't be subject to MIF for the first twelve months. 

It doesn't just apply for managed migration. It applies to everyone claiming UC for the first time if found gainfully self employed.