Help needed!
Bizmum
Posts: 5 Forumite
need advice please. I recently left a toxic relationship and found myself homeless with no income as previous partner was in control of the finances. I have a baby so I applied for universal credit. I started up a company last year which I am a director for but I have no income from this company. Will this affect the benefits? I don’t want to be on benefits forever it’s just till I’m back on my feet and can find a job. Anyone got any insight/advice I’d really appreciate it!!
I am currently working on the company but it’s making no profit at the moment and I don’t get any money whatsoever from it.
I am currently working on the company but it’s making no profit at the moment and I don’t get any money whatsoever from it.
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I started up a company last year which I am a director for but I have no income from this company. Will this affect the benefits?
Yes after 12 months. The expectation is that after an initial period you will be paying yourself NMW (even if you don't) and that will reduce any benefits. It's called Minimum Income Floor
https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/universal-credit-and-self-employment-quick-guide
Key issue is whether this business can support you after 12 months. If not, fold it and seek employment as you will have picked up some skills when developing your company.Unlike some here, I am not omniscient. If I am wrong correct me. I won't take offence.
The law is like an ocean - have a swim but don't drown.0 -
While your child is below 3 you will not be in the all work related group. Until then the Minimum Income Floor will not be applied as it cannot be applied to anyone not in this group.
If you are trying to maintain the business you will e treated as a self employed person and required to report all business income and expenditure on a monthly basis. The surplus will be treated as your earnings for the month and taken into account in the usual way. You will have a Work Allowance because of your child meaning that some of the earnings are ignored, a deduction of 63% of anything over this will be made.
However when you get to this pint, even though you have a company, you can ask to be treated as a jobseeker. You will then be expected to look for employment but if the company provides some income the hours of work search may be reduced.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
Thank you. I am still applying for jobs but just needed to apply for UC to get me by whilst I get settled. Appreciate your help thank you0
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