YY, I've only just realised I've fallen foul of the double-speak myself. Will get on to the JCP tomorrow 
Rock, this is a long extract but it's important. It hasn't received nearly enough press, probably because it's both complicated and ridiculous :-
Universal Credit, which will introduce a staggering amount of complexity into the system and will stifle the chances of both the self-employed and the entrepreneurial alike.
According to the recently published draft regulations: ?claimants who declare that they have income from self-employment, or who are self-employed with no income, will be invited to a ?Gateway? interview.?
This appears to be some form of Stalinist Dragon?s Den, whereby people will be forced to prove to the DWP that their business, or their trade is: ?done with the intention of increasing the income received to the level we could expect the claimant to make if working full time?
Claimants will be expected to provide reams of evidence at these interviews which will no doubt be carried out by people with so much entrepreneurial know-how that they?ve ended up working in the Jobcentre.
Should the claimant pass this government test, then they will be granted a year?s start up period, during which they will be largely left alone. After that they will be subject to the ?Minimum Income Floor?. This means that self-employed people will be expected to earn a certain amount a week, or lose eligibility for benefits or self-employed status. The Government are not telling us exactly what that Minimum Income Floor will be in the consultation documents, however it has previously been suggested that people will be expected to earn at least the minimum wage for any self-employed activity.
Under the new proposals self-employed people will be expected to work at least 18 hours a week. It is unclear whether those in self-employment working at this level will be expected to abandon self-employment to take up full time work, or workfare, should the DWP deem it appropriate. Those working part time are now to be forced to continually look for full time work, attend interviews at the drop of a hat and hand in their notice immediately should they be offered even a temporary full time job.
If these requirements are not inflicted on self employed workers, then for many people simply under reporting their hours will mean they are able to qualify for the full Universal Credit award. If this all sounds confusing that?s because it is. Once again a key piece of legislation, set to go before Parliament in Autumn, has not been thought through or adequately explained.
It is likely that the Minimum Income Floor will mean that self-employed people are expected to earn the equivalent of the minimum wage for 35 hours a week or face a cut in benefits. As Housing Benefits are now to be lumped in with Universal Credit, this may mean homelessness for some.
Another aspect of the new regime will punish people who invest in tools, stock or other business expenses in order to increase earnings. Self employed people will now be required to report all income and business expenditure on a monthly basis as opposed to annually as under the present system. Expenses will not be carried over to the next month. This will mean if someone spends a couple of grand on stock this will only be reflected in their earnings for that month. The new system will make it impossible for self-employed people to invest on any significant level to improve their earnings.
It will not just be businesses that have large outlays, such as small shops or tradespeople, that will be affected by the monthly reporting. A freelance journalist who spends a month writing a piece in anticipation of it being sold will be penalised for not earning minimum wage during that period. Self employed people will be punished for injecting both time and cash into their business. The harder you work, the less you get.
And these are the lucky ones who have passed their DWP Dragon?s Den.
People who fail to impress the Government with their self-employment plans will still be permitted to earn money from self-employment, and will face the same monthly requirement to report any earnings. They will also however be given a Claimant Commitment, meaning they will not be treated as self-employed. This will mean that there will be a requirement to attend Mandatory Work Activity or attend pointless courses and workshops with Welfare to Work companies like fraud ridden A4e any time the DWP sees fit.
This will destroy people?s ability to take on small amounts of work on a casual basis. Should someone be offered a few days work on a self-employed basis they will not be in a position to guarantee they can turn up. They could be sent to work in a charity shop with no pay that week instead. Far from the stated aim of making all work pay, short periods of self-employed work will be a commitment that claimants can no longer make under the new regime. The DWP will decide how you spend your time and if you fail to comply you could face sanctions for up to three years.
johnnyvoid.wordpress.com/2012/06/23/universal-credit-self-employment-and-the-minimum-wage/