Universal Credit

HolyMoly123

I want to leave a toxic job where my manager has confirmed that I do the work of 2 people. I've got the opportunity to set up as a sole trader in a new line of work but it might be a few months before I'm turning a profit. I have enquired with CAB whether I would get UC support (2 small children, single parent) but they advised that I might start on a sanction as I've quit a job rather than being out of work. I would likely be working around 20 hours per week in the sole trader role. Can anyone advise on this either through expertise or personal experience? Thanks

RunsFromRobots

How old is your youngest? If they are under 3 you won't be in a sanctionable regime.

WelshPaul

If you quit, you will be sanctioned. They don’t care if you do the job of a hundred men; it’s not a valid reason to quit.

Spoonie_Turtle

I would say remember that sanctions are taken as a % of the standard allowance.  You'd still get the child elements and rent at least, albeit with any deductions for earnings. 

Sanctions are for if you willingly give up income without good reason - I don't know where setting up your own company from scratch stands.

Dobbibill

Sorry I can't help with the UC query but can you ask your employer to reduce your hours so you are part time while you set up your business? Is it possible to then split your time across both until your business turns a profit and then quit your job? All the best with your business venture. 

HolyMoly123

RunsFromRobots said:

How old is your youngest? If they are under 3 you won't be in a sanctionable regime.

Nearly 7...

HolyMoly123

Spoonie_Turtle said:

I would say remember that sanctions are taken as a % of the standard allowance.  You'd still get the child elements and rent at least, albeit with any deductions for earnings. 

Sanctions are for if you willingly give up income without good reason - I don't know where setting up your own company from scratch stands.

Thanks for the advice. How do I calculated what the child elements are via something like the entitled to calculator? I have a mortgage so assume the rent element would not apply to me also?

HolyMoly123

WelshPaul said:

If you quit, you will be sanctioned. They don’t care if you do the job of a hundred men; it’s not a valid reason to quit.

Thanks, sad to hear that

HolyMoly123

Dobbibill said:

Sorry I can't help with the UC query but can you ask your employer to reduce your hours so you are part time while you set up your business? Is it possible to then split your time across both until your business turns a profit and then quit your job? All the best with your business venture. 

I have asked but they think there are too many obstacles...

Dobbibill

HolyMoly123 said:

Dobbibill said:

Sorry I can't help with the UC query but can you ask your employer to reduce your hours so you are part time while you set up your business? Is it possible to then split your time across both until your business turns a profit and then quit your job? All the best with your business venture. 

I have asked but they think there are too many obstacles...

Maybe time to look at a PT position elsewhere so you can set up your business. I'm sure you will be able to find a solution