Universal Credit - Self Employed

TheInquisitor

Just looking for a little clarity if someone can help.

I am self-employed and claiming UC. I had my initial year start-up period which has now ended and the MIF has been applied.

They work out my UC based on £1,642.72 - which means if I don't earn more than that I get nothing.

Work is slow for a graphic designer so I don't often earn that much. However if, by luck or good management I earn say £1,700 one month they work out my UC based on that amount.

But every £1.00 I earn in take-home pay reduces my Universal Credit by 55 pence - which is £935.00.

Which means they'll reduce the standard allowance which I'm entitled to of £400.14 by £935.00.

Which means I get nothing.

So essentially I'll never get any financial assistance from UC while self-employed.

Have I got that correct?

poppy12345

Yes that is correct, what ever your earnings your UC will reduce to zero. This is because your maximum IC entitlement before deductions is low. 

Spoonie_Turtle

poppy12345 said:

Yes that is correct, what ever your earnings your UC will reduce to zero. This is because your maximum IC entitlement before deductions is low. 

This is the key part, OP.  It's not that there's no help for self-employed people in general, it's that there's no help for self-employed people in your exact circumstances.  Someone with a higher UC entitlement because of different circumstances would still be entitled to some help even with the MIF in place. 

With a max UC entitlement of £400.14, your payment is nilled by earnings of more than £727.52 (which is the equivalent of 13.75hrs per week at minimum wage). 
If you were not self-employed and were earning that level they would be expecting you to be looking for more work and require proof of such at regular jobcentre appointments.

NedS

TheInquisitor said:

Just looking for a little clarity if someone can help.

I am self-employed and claiming UC. I had my initial year start-up period which has now ended and the MIF has been applied.

They work out my UC based on £1,642.72 - which means if I don't earn more than that I get nothing.

Work is slow for a graphic designer so I don't often earn that much. However if, by luck or good management I earn say £1,700 one month they work out my UC based on that amount.

You've had a year, supported by the tax payer (UC), to build your business to the point where you can earn enough to support yourself (the purpose of the start up period)

What steps have you taken, and what more could you reasonably do?

If you are unable to increase your S/E earnings to the point you are able to support yourself, you may like to consider a part time job to provide some extra income. Many people work part time (or even full time) whilst building up a business to the point at which it is able to support them.

TheNorthStar

Try promoting your graphic design business on Fiver. It's a way to introduce yourself to new clients.