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    • london2018
    • By london2018 13th May 18, 2:51 PM
    • 2Posts
    • 1Thanks
    Universal Credit Self Employment Nightmare
    • #1
    • 13th May 18, 2:51 PM
    Universal Credit Self Employment Nightmare 13th May 18 at 2:51 PM
    I am finding Universal Credit (UC) extremely stressful for a self-employed person, and it also doesn't clarify questions.

    For example:

    1. A self-employed person is basically only allowed to receive Universal Credit for 12-months. However, does this mean that housing benefits are only available for 12-months as well?

    2. How much exactly is the MIF? There is no calculator to exemplify individual cases. Or does MIF deductions simply mean that the entire Universal Credit is deducted from the total payments?

    3. Am I allowed to apply for a startup loans (not the New Enterprise Allowance) while on UC? If I can't apply for a startup loan then I am basically screwed because you can't build a business solely on benefits which barely covers food and living costs.

    Universal Credit is so stressful I have developed an ulcer. I'm in daily pain and my back doesn't hold up for more than a few hours per day. The constant delays to everything plus the monthly payments are a nightmare. Bank transactions are free between accounts and it absolutely makes no sense why the government must make these payments on monthly basis.

    The entire application process was a complete nightmare.

    My self-employment application for UC took SIX MONTHS before the accurate amounts were applied. For three of those six months I received no payments at all and I became suicidal from the sheer stress. The remaining three months the payment was reduced to only 308 per month due to faults to the housing benefits and MIF deductions applied one year prematurely. It took an entire six months to get it straightened out. They gave me only 50 compensation although this entire process put me deep in debt. No emergency funding was available to me. (The only emergency funds that should have been available to me is a budgeting loan at only 150 one-time loan. How would I pay 850 rent on 150 for six months?).

    This faulty process completely ruined my startup period and exhausted my funds. The limited funds I had available to purchase supplies and try to start the business was used to stop me from becoming homeless. It was not enough and I had to chase very high interest private loans from dubious characters as I had no access to any other funds. The interest was enormous on it and I still owe about 40%.
    My startup eventually only began on the 7th month, once they had cleared up their mistakes. However, they refused to give me a new startup date meaning I don't receive the 12-month startup period I am supposed to be entitled to, to build my business. I have filed numerous complaints but they refuse to adjust the dates. This means I only have a four months to build the business to earn the Minimum Income Floor before it cuts of UC. And I am supposed to build it with no access to funding.

    The New Enterprise Allowance (NEA) is not business funding. It's only 65 per week to cover basic food and toiletries.

    Tell me how to escape this nightmare. While I am trying to build the business I have been consistently applying for jobs. My health problems restricts me to p/t work. Over 300 applications later I don't even have one response or one job offer... I have shops who want my products on trial in their stores but I have no funds to supply them with the products, and they are only taking them on trial terms meaning they will not make advance payments, or be invoiced on 30-60 terms. They will only pay me as and if they sell.

    I feel I am living in a nightmare The nightmare is made worse by the government's poor system. Nothing is created and shaped to help people move on.
    Last edited by london2018; 14-05-2018 at 12:32 AM.
Page 1
    • marliepanda
    • By marliepanda 13th May 18, 5:08 PM
    • 6,896 Posts
    • 15,045 Thanks
    • #2
    • 13th May 18, 5:08 PM
    • #2
    • 13th May 18, 5:08 PM
    It!!!8217;s to stop people from Continuining with self employment that is never going to turn a profit to keep them in order to keep claiming benefits yet avoid al the requirements of job hunting.

    Either you build a business that can sustain you or you go onto job seeking requirements/work for a wage.
    • huckster
    • By huckster 13th May 18, 5:19 PM
    • 3,506 Posts
    • 1,552 Thanks
    • #3
    • 13th May 18, 5:19 PM
    • #3
    • 13th May 18, 5:19 PM
    Phone Universal Credit and ask to book a self employment review at the Job Centre. Then you can ask all of your questions and obtain answers.

    If your business has existed for over 12 months, they apply the Minimum Income Floor (MIF) which is assumed net income of about 1100, which is 35 hours a week at the national minimum wage. If you have caring responsibilities for example then they can reduce the MIF to a lower amount.

    Give the Job Centre self employment advisor a chance to explain and see what help can be provided. You might also want to contact local self employment help agencies which exist in most areas of the country.
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
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