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  • FIRST POST
    • AMN1607
    • By AMN1607 12th Apr 19, 6:20 PM
    • 2Posts
    • 0Thanks
    AMN1607
    Going self employed & universal credit
    • #1
    • 12th Apr 19, 6:20 PM
    Going self employed & universal credit 12th Apr 19 at 6:20 PM
    Hi, newbie here, so I apologise if this is in the wrong forum.
    I am currently working 15 per hours a week cleaning while also working self employed as a pet sitter/dog walker.

    I am planning on leaving the cleaning job at the start of the summer holidays in July and concentrate on building up my client base and working towards being full time self employed.

    Based on what I am earning currently (and assuming all goes well and I keep the clients I already have and gaining new clients) I predict my income this financial year to be approx £8000. I am looking into an accountant who can deal with all the HMRC side of things as I really donít understand it!

    I have read online that I could apply for universal credit as my income would be very low to start with, and that if I am eligible then I would be able to meet with a small business advisor to help gain more clients etc and of course help with finances.

    So basically what I am asking is has anyone done this before? Is it worth doing? Will the job centre be on my back constantly and sanctioning me if Iím donít do something correct? I have never claimed any benefits/UC and have worked full time since age 19 (now 29) so have been paying tax/NI through PAYE.

    Thank you in advance to anyone who can offer advice etc!
Page 1
    • gettingready
    • By gettingready 13th Apr 19, 12:58 AM
    • 10,928 Posts
    • 16,321 Thanks
    gettingready
    • #2
    • 13th Apr 19, 12:58 AM
    • #2
    • 13th Apr 19, 12:58 AM
    https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/universal-credit-and-self-employment-quick-guide

    2. The Minimum Income Floor
    Universal Credit includes a ‘Minimum Income Floor’ (MIF) if you are gainfully self-employed, and your business has been running for more than 12 months. The MIF is an assumed level of earnings. This is based on what we would expect an employed person to receive in similar circumstances.

    It’s calculated using the National Minimum Wage for your age group, multiplied by the number of hours you are expected to look for and be available for work. It also includes a notional deduction for tax and National Insurance.

    If your self-employed earnings are below the MIF we have calculated for you, we will use the MIF to work out your Universal Credit award instead of your actual earnings.

    So.... if your MIF is calculated at say £1000 per month (for example) but you only earn £600 per month then for the UC purpose you may not be considered gainfully self employed and your benefit calculation can be based n the £1000 per month income despite you only having £800 per month income - reducing your benefit this way.
    Last edited by gettingready; 13-04-2019 at 1:02 AM.
    • tacpot12
    • By tacpot12 13th Apr 19, 9:01 AM
    • 2,296 Posts
    • 2,002 Thanks
    tacpot12
    • #3
    • 13th Apr 19, 9:01 AM
    • #3
    • 13th Apr 19, 9:01 AM
    Leaving your cleaning job is a risky strategy, but I understand why you might want to give up this job.

    Gettingready has explained the risk. If you go ahead, you need to set a date by which, if your self-employment is not able to support you without claiming UC, you will start job hunting.

    You also must ensure that you meet with the business advisor, do so whether or not the business is doing well.

    Good luck with the business!
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always check official information sources before relying on my posts.
    • AMN1607
    • By AMN1607 14th Apr 19, 6:16 PM
    • 2 Posts
    • 0 Thanks
    AMN1607
    • #4
    • 14th Apr 19, 6:16 PM
    • #4
    • 14th Apr 19, 6:16 PM
    Thank you for your replies. I know it is risky leaving my paid employment but itís something I need to do - if all else fails I can get another job!
    • richardw
    • By richardw 14th Apr 19, 8:54 PM
    • 18,943 Posts
    • 7,991 Thanks
    richardw
    • #5
    • 14th Apr 19, 8:54 PM
    • #5
    • 14th Apr 19, 8:54 PM
    Could you offer a cleaning service if you are pet sitting at someone’s home?
    Posts are not advice and must not be relied upon.
    • gettingready
    • By gettingready 16th Apr 19, 9:36 PM
    • 10,928 Posts
    • 16,321 Thanks
    gettingready
    • #6
    • 16th Apr 19, 9:36 PM
    • #6
    • 16th Apr 19, 9:36 PM
    Not everyone who uses pet sitters can also afford a cleaner at the same time
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