Full time self employment incompatible with UC?

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  • WillowCat
    WillowCat Posts: 974 Forumite
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    AG47 wrote: »
    Are you sure Willowcat that £600 per month is enough to put you in light touch?

    Is this if you are a couple with kids?

    You've quoted a post I made on an entirely different thread, about an entirely different subject.

    You can only be put in light touch with EMPLOYED earnings. Self employed earnings don't count. And yes £600 a month from employment is enough to put a couple into light touch.
  • AG47
    AG47 Posts: 1,618 Forumite
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    calcotti wrote: »
    But if you have already been self employed for 12 months before claiming UC you do not get benefit from this. I think the rule is to be changed in the future so that there will be a 12 month grace period even if already self employed but it doesn't come in until next year.

    If you’ve only just started SE then it’s ok, from then on you can only do it every five years
    Nothing has been fixed since 2008, it was just pushed into the future
  • AG47
    AG47 Posts: 1,618 Forumite
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    WillowCat wrote: »
    You've quoted a post I made on an entirely different thread, about an entirely different subject.

    You can only be put in light touch with EMPLOYED earnings. Self employed earnings don't count. And yes £600 a month from employment is enough to put a couple into light touch.

    How much is it from SE?
    Nothing has been fixed since 2008, it was just pushed into the future
  • AG47
    AG47 Posts: 1,618 Forumite
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    WillowCat wrote: »
    You can only be put in light touch with EMPLOYED earnings. Self employed earnings don't count. And yes £600 a month from employment is enough to put a couple into light touch.

    If you earn about £600 from employed earning then you still have to attend the JC every 2 weeks but get the same mount of money?
    Nothing has been fixed since 2008, it was just pushed into the future
  • AG47
    AG47 Posts: 1,618 Forumite
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    When I do then benefits calculations on entitled to.com it shows for working 30hrs SE earning £600 month


    monthly)
    Standard allowance £498.89
    Housing £1,406.47
    Children £740.42
    Total before adjustments £2,645.78
    Taken off for earned income (your salary) £197.19
    Taken off for unearned income (benefits and savings) £0.00
    Total adjustments £197.19
    Total payment for the month £2,448.59
    Universal Credit payment detail (monthly)
    Maximum Amount
    Standard allowance £498.89
    Child element (for 3 children) £740.42





    So this is not taking my earnings as min income floor, but actually my SE earnings.

    Is the benefit calculator wrong?
    Nothing has been fixed since 2008, it was just pushed into the future
  • calcotti
    calcotti Posts: 15,696 Forumite
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    AG47 wrote: »
    If you earn about £600 from employed earning then you still have to attend the JC every 2 weeks but get the same mount of money?

    https://www.turn2us.org.uk/Benefit-guides/Universal-Credit/Claimant-Commitment-Conditionality

    "If you are a couple and earning less than your joint earnings threshold but more than £541 per month, you will be subject to all work-related requirements, except for looking for work. You will still have to be ready to take up more work, to do the things your job coach asks you to and to go to work-focused interviews."
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • calcotti
    calcotti Posts: 15,696 Forumite
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    edited 25 July 2019 at 9:14AM
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    AG47 wrote: »
    So this is not taking my earnings as min income floor, but actually my SE earnings.

    Is the benefit calculator wrong?

    On the the earnings screen there is a warning message (assuming you stated you were self employed at the outset):
    "If you are self employed and claiming Universal Credit, or Council Tax Support in some areas, you may be affected by the minimum income floor (MIF), please see our Earnings from self employment help page for further information. If you continue we will base our calculation on the level of earnings entered here so you should make sure the earnings are at least the level of the MIF or your Universal Credit estimate may be too high."

    The calculator cannot know whether the MIF will be applied to you or not. It based the calculation on what you entered. If the MIF applies you need to enter the MIF level of earnings rather than your actual earnings, as stated in the message.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • AG47
    AG47 Posts: 1,618 Forumite
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    If somebody doesn’t earn anything at all and is just looking for work then they get the full amount, but if they do a little work and earn a small amount then they suddenly are assumed to be earning the MIF?
    Nothing has been fixed since 2008, it was just pushed into the future
  • AG47
    AG47 Posts: 1,618 Forumite
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    calcotti wrote: »
    https://www.turn2us.org.uk/Benefit-guides/Universal-Credit/Claimant-Commitment-Conditionality

    "If you are a couple and earning less than your joint earnings threshold but more than £541 per month, you will be subject to all work-related requirements, except for looking for work. You will still have to be ready to take up more work, to do the things your job coach asks you to and to go to work-focused interviews."

    Thanks Calcotti, and what if the couple earn less than £541 per month from self employment?
    Nothing has been fixed since 2008, it was just pushed into the future
  • AG47
    AG47 Posts: 1,618 Forumite
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    “This only applies if you are in the 'all work related requirements' group and have been self-employed for more than a year. The minimum income floor does not apply for the first year to allow for lower earnings during your 'start up' period.”

    So my benefit calculator numbers are correct are they? Just started self employment right now
    Nothing has been fixed since 2008, it was just pushed into the future
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