Is UC different if you're self employed?

[Illbefinejustbloodyfine]

I currently work p/t, employed. But am suffering serious burnout from the traumatic nature of my job.

I relieve UC as a single parent.

Just wondering, is it different if self employed? If I learnt a similar amount, would I still get a similar amount of UC?

It is different if self employed yes because rather than earnings it goes by the Minimum Income Floor, which is worked out as the equivalent of someone working full time for NMW Rate.

So for example if you only earn £1000 in a month self employed, which is below the Minimum Income Floor, you’re still treated for UC purposes as if you earned the Minimum Income Floor which is around £1700, so the £1700 is the figure used to calculate your UC entitlement. If you earn above the floor then they use your actual earnings to work out your entitlement.

The Minimum income floor is actually more than the equivalent employed minimum you have to earn - which is unfair I think. It depends on your child age and so on but you have to earn about 200 - 300 per month more if you're self employed which does not seem fair.

That said, you can get a year start up period if they believe you have a valid business proposal, so some time to work up to that amount.

I’m self employed and was worried about going over from WTC to UC. The biggest difference is that because they work it out and pay monthly instead of yearly the fluctuations in my income each month are balanced out by the changes in UC, so if I have a good month I get less UC, whereas with WTC i got the same amount averaged out across the year.

My work coach has been really encouraging and understanding about the struggles of trying to grow a business, and it has actually been helpful having to submit my accounts monthly instead of saving it all up until the year end and having to do it all in one massive go!

Sadly after a year of being assessed as a start up I haven’t been able to meet the minimum income floor, despite working like a dog! So I either have to give up my business or do some part time work alongside it to bridge the gap. But its been a lifesaver this year to be fair.

Yes that is really annoying that they don't balance it out. it means some careful juggling with expenses, invoices and so on - I try to smooth out my monthly income and invoice at certain points in the month so that the income is as balanced as possible and I know how much I will be paid that month and avoid having a lower month the next month. This means you have to time certain necessary expenses for months when you have more income (not always possible but sometimes can be done!).

I believe if you earn way under the MIF they can harass you to get a job you don't want, which could affect you being allowed to be self employed. So it is worth some careful thought.

But once you have the hang of it it is ok.

Yes same, I’ve had to ask people to pay before or after their 30 days credit to try and get payments into the right month so that my income isn’t wildly under or over. I’m always worried that if I go over then they’ll stop my claim, but (luckily or unluckily!) I’ve never earned too much!