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  • FIRST POST
    • jennifer201386
    • By jennifer201386 9th Apr 18, 3:02 PM
    • 10Posts
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    jennifer201386
    Self employed and universal credit
    • #1
    • 9th Apr 18, 3:02 PM
    Self employed and universal credit 9th Apr 18 at 3:02 PM
    Hello
    Universal credit doesnít apply to me yet but Iím currently self employed receding tax credits.
    I have a four year old whoís in school and work 16 hours a week
    My queries are listed below-
    1. Itís my understanding that self employed applicants will have agreed the amount of hours that they can work which fit into my childís school hours etc. I understand that this is for the minimum floor calculation. Iíve read different things on this topic some websites say I will need to work 16 hours, others say 20 and some say 24 hours, are you able to tell me which number is most likely ?
    2. My other query is, I understand that the minimum floor is used to determine a persons supposed self employed income, so just for example letís assume I need to work 20 hours a week which would give me a minimum floor of £8143 per annum, the bit thatís confused me is letís say for argument sake that I earned £8500 but my mileage expenses came to a total of £1400 which would give me a gross income minus expenses of £7100. I want to know if the figure before expenses is used to work or my entitlement to universal credit or the figure after expenses. If the figure after expenses if used then it would appear I havenít reached my minimum floor, which doesnít seem fair, if this is the case would they base my income on the minimum floor of £8143 but not penalise me or ask me to earn more money or work more hours because theyíve used their common sense and realised that itís gone on fuel?
Page 1
    • Icequeen99
    • By Icequeen99 9th Apr 18, 3:17 PM
    • 3,577 Posts
    • 2,415 Thanks
    Icequeen99
    • #2
    • 9th Apr 18, 3:17 PM
    • #2
    • 9th Apr 18, 3:17 PM
    Hello
    Universal credit doesnít apply to me yet but Iím currently self employed receding tax credits.
    I have a four year old whoís in school and work 16 hours a week
    My queries are listed below-
    1. Itís my understanding that self employed applicants will have agreed the amount of hours that they can work which fit into my childís school hours etc. I understand that this is for the minimum floor calculation. Iíve read different things on this topic some websites say I will need to work 16 hours, others say 20 and some say 24 hours, are you able to tell me which number is most likely ?
    2. My other query is, I understand that the minimum floor is used to determine a persons supposed self employed income, so just for example letís assume I need to work 20 hours a week which would give me a minimum floor of £8143 per annum, the bit thatís confused me is letís say for argument sake that I earned £8500 but my mileage expenses came to a total of £1400 which would give me a gross income minus expenses of £7100. I want to know if the figure before expenses is used to work or my entitlement to universal credit or the figure after expenses. If the figure after expenses if used then it would appear I havenít reached my minimum floor, which doesnít seem fair, if this is the case would they base my income on the minimum floor of £8143 but not penalise me or ask me to earn more money or work more hours because theyíve used their common sense and realised that itís gone on fuel?
    Originally posted by jennifer201386
    In answer to your questions.

    1. I don't think anyone can say how many hours your work coach will agree to. The MIF only applies if you are in the all work requirements group but it can be anything up to 35 hours a week.

    2. MIF is based on net income (so income - expenses less deductions for tax, NI and pension contributions).

    3. It is an automatic calculation. It isn't annual - it is per assessment period. If you don't earn that amount in any assessment period, they will use the hours x NMW less notional tax and NI and calculate your UC on that amount. No common sense to it.

    IQ
    • jennifer201386
    • By jennifer201386 9th Apr 18, 3:38 PM
    • 10 Posts
    • 0 Thanks
    jennifer201386
    • #3
    • 9th Apr 18, 3:38 PM
    • #3
    • 9th Apr 18, 3:38 PM
    Thanks for your reply
    I read somewhere that people with children in compulsory school age up to age of 13 will be expected to work 24 hours a week.
    I was a bit confused by not earning the minimum floor due to mileage expenses, I read that if somebody doesn!!!8217;t achieve their minimum floor then they will be required to work more hours or achieve a better rate of pay.
    This didn!!!8217;t seem fair when it!!!8217;s all going on fuel
    • pmlindyloo
    • By pmlindyloo 9th Apr 18, 3:53 PM
    • 11,818 Posts
    • 13,685 Thanks
    pmlindyloo
    • #4
    • 9th Apr 18, 3:53 PM
    • #4
    • 9th Apr 18, 3:53 PM
    This is a useful link about universal credit and the self employed>

    https://www.moneyadviceservice.org.uk/en/articles/universal-credit-for-the-self-employed

    Are you a single parent?
    • jennifer201386
    • By jennifer201386 9th Apr 18, 3:58 PM
    • 10 Posts
    • 0 Thanks
    jennifer201386
    • #5
    • 9th Apr 18, 3:58 PM
    • #5
    • 9th Apr 18, 3:58 PM
    Yes my child is 4
    • pmlindyloo
    • By pmlindyloo 9th Apr 18, 3:58 PM
    • 11,818 Posts
    • 13,685 Thanks
    pmlindyloo
    • #6
    • 9th Apr 18, 3:58 PM
    • #6
    • 9th Apr 18, 3:58 PM
    Quote from Universal Full Service Guidance

    If a claimant has caring responsibilities for a child, they will generally need to show that they have reasonable prospects of finding work given any restriction to their availability. This is apart from the main carer (responsible carer) of a child under 13, who is able to restrict their availability to their child!!!8217;s normal school hours, without showing they have reasonable prospects of finding work, given this restriction. Travel time to and from school to collect children should be considered for any restriction.
    • pmlindyloo
    • By pmlindyloo 9th Apr 18, 4:16 PM
    • 11,818 Posts
    • 13,685 Thanks
    pmlindyloo
    • #7
    • 9th Apr 18, 4:16 PM
    • #7
    • 9th Apr 18, 4:16 PM
    And this is a link about what you report to UC each month as regards your self employment income:

    https://www.litrg.org.uk/tax-guides/self-employment/working-out-profits-losses-and-capital-allowance/how-do-i-work-out-my-0
    • jennifer201386
    • By jennifer201386 9th Apr 18, 6:21 PM
    • 10 Posts
    • 0 Thanks
    jennifer201386
    • #8
    • 9th Apr 18, 6:21 PM
    • #8
    • 9th Apr 18, 6:21 PM
    Thanks for all your help
    I!!!8217;m hoping I!!!8217;ll do 20 hours per week, all being well
    What do you think will happen if you don!!!8217;t reach the minimum floor ? Will they expect you to try and do more hours or perhaps stop self employment
    Also, do you have to declare milage for expenses or is it my discretion ?
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