UC- self employed CIS sub contractor no work 3 months

graduate2012

Hi there
Hoping someone might be able to help with a few question regarding UC. We have never received UC before so not sure how it works at all.

We have a family of 
2 adults
1 child aged 6

I haven't worked since our child was born for a number of reasons and this won't change any time soon. I have never claimed out of work benefits for this as I dont believe we have ever been eligible sue to my husband's income. Also haven't felt the need as we've always been OK.

My husband is a sub contractor in the construction industry and is paid through the CIS scheme.

He has been informed he probably won't have any work until March or April. He may be able to find some but it's the worst time of year for his trade so we think this is unlikely. 

How would it work if we applied for UC?

As he has had a fairly decent income prior to this period of 'unemployment", would this affect his eligibility?

Although he has had a decent income sadly due to me not working we've never been able to build up savings more than 5k.

Would his prior income affect UC eligibility?
Would they expect the money earnt previously to carry us through these next 4 months? (It won't)

How would it work if in March/April he went back to work? 
Is it possible to claim for a short period of time knowing things will pick up in April?

Hope I've made sense.  I've tried to find this info online but have struggled...my head is all over the place so this may be why.

Thank you in advance for any help.

peteuk

If you apply for UC this will be a joint claim and you would be expected to look and prepare for work (unless you have a health issue) given your sons age, this will be 30 hrs a week.

Self employed are usually ask to prove that there buisness is sustainable and given a years “start up” period.  He will need to input his wage at the end of each assessment period and that then would affect your payment (Not sure if CIS affect this) 

UC is paid in arrears, the day you apply becomes the first day of your assessment period eg 04 Dec.  Your assessment period is a month (04 Dec - 03 Jan) and payment is usually 5-7 days after this.   Your total UC is dependant on various things, do you rent or own a house? Health of yourself and child etc etc. 

What will reduce your UC is wages (reduced 55p per pound) capital (above £6K -£4.35 for every £250 or part of there in, £16K no entitlement) Capital includes everything you have in the bank, savings, ISA, Stocks and shares, other properties at the point of application. 

After 6 months of £0.00 payments eg when your wage cancels out the payment then your UC claim will end. 

graduate2012

Thank you son much for your reply

My husband has been self employed for 10 years but has just had a large job cancelled. Is it still likely he will be given this start up period even though he isn't newly self employed?

Are self employed claimants expected to look for work/jobs?

 

Spoonie_Turtle

I don't know how the CIS interacts with UC but presuming he is straightforwardly treated as self-employed:

Yes new claimants deemed to be gainfully self-employed get a 12 month 'start-up' period. 
Originally they didn't but it was changed a few years ago, and is helpful for people like your husband who are claiming because established work has dwindled, rather than because they're newly self-employed or have lost their employed job.

S-e claimants aren't required to look for work because it's viewed that they are putting their time and effort into full-time self-employment.

You would be required to look for work yourself though, until/unless your husband's earnings are above the relevant threshold again, unless you have a health condition limiting your ability to work, you provide full-time care to a disabled person claiming a qualifying disability benefit, or you set up genuine self-employment yourself.

huckster

If he has never claimed UC before, then yes he could have start up period of up to 12 months if found gainfully self employed.

However, I am not sure he would be found gainfully self employed as there is no current self employed income and no self employed work he could tell the Job Centre about.

If he is found not gainfully self employeed he would be expected to search for normal employment and he would be required to attend regular Job Centre appointments.

And also you would be required to attend regular Job Centre appointments to discuss your search for work. If you have health conditions affecting your ability to work, you would need to get fit notes to report to Universal Credit and then go through an assessment process.

graduate2012

Thank you both this is really helpful 

graduate2012

huckster said:

If he has never claimed UC before, then yes he could have start up period of up to 12 months if found gainfully self employed.

However, I am not sure he would be found gainfully self employed as there is no current self employed income and no self employed work he could tell the Job Centre about.

If he is found not gainfully self employeed he would be expected to search for normal employment and he would be required to attend regular Job Centre appointments.

And also you would be required to attend regular Job Centre appointments to discuss your search for work. If you have health conditions affecting your ability to work, you would need to get fit notes to report to Universal Credit and then go through an assessment process.

Thank you for this 

He has been self employed for 10 years and always had a consistently good income
Sadly we never saved very much

His last payment for any self employed work was Tuesday. 

Would this not be considered to be  gainfully self employed? 

huckster

Possibly not gainfully self employed, if he said that he had no planned self employed work for 3 months going forward.

The issue with finding him gainfully self employed, is that he would be reporting his income/expenses every month and if he reported zero income for several months, questions are going to be asked. And he would have to attend self employment review appointments, where the Job Centre can bring forward a minimum income floor (  a presumed level of income of 35 hours per week at national minimum wage used to calculate UC) ending the start up period early.  The start up period is up to 12 months and it can be ended early.

When a Job Centre Work Coach decides on whether a claimant is gainfully self employed or not,  they need to consider previous history over say last year, but also future plans. It is probably more relevant to consider future plans depending on type of work

If your husband has no self employed work lined up for months, what is stopping him finding some temporary employed work through local agencies ?

What happens if the work that is expected to be available in 3 months is cancelled or postponed?

Why should the Job Centre treat him as self employed if he tells them he has no self employed work for 3 months and won't be looking for other self employed work, as he has work lined up in 3 months time?

graduate2012

huckster said:

Possibly not gainfully self employed, if he said that he had no planned self employed work for 3 months going forward.

The issue with finding him gainfully self employed, is that he would be reporting his income/expenses every month and if he reported zero income for several months, questions are going to be asked. And he would have to attend self employment review appointments, where the Job Centre can bring forward a minimum income floor (  a presumed level of income of 35 hours per week at national minimum wage used to calculate UC) ending the start up period early.  The start up period is up to 12 months and it can be ended early.

When a Job Centre Work Coach decides on whether a claimant is gainfully self employed or not,  they need to consider previous history over say last year, but also future plans. It is probably more relevant to consider future plans depending on type of work

If your husband has no self employed work lined up for months, what is stopping him finding some temporary employed work through local agencies ?

What happens if the work that is expected to be available in 3 months is cancelled or postponed?

Why should the Job Centre treat him as self employed if he tells them he has no self employed work for 3 months and won't be looking for other self employed work, as he has work lined up in 3 months time?

I see what you mean.

He will be looking for other self employed work, but I think it's unlikely he will find it.
He will possibly be able to find some odd days here or there but it wouldn't be enough to support us as a family. 

Employment isn't something he has ruled out, but I think he would struggle  finding another job as he has no qualifications in even Maths and English.

huckster

He could find basic work such as warehouse assistant or delivery driver.