Universal credit fuck up, self employed

[Cappuccino23]

Hi all just looking for some perspective.

long time lurker and I am borderline emotional breakdown today so just needed some advice.

I am self employed in a relatively new business (7/8 months it’s been going). UC all informed of everything, I report my income and expenses every month and they pay a certain amount towards my childcare.

I have struggled and worked so so hard to get my business off the ground (customer facing). I love what I do and have worked so hard to build a client base etc. my business isn’t really turning over a profit yet and I do rent a space (necessary) so there are some other expenses involved. My best month before expenses I made about £1300. I have built it up from absolutely nothing.

out of absolutely nowhere UC decide they are not paying my childcare anymore because I “don’t work” and I quite - other people’s taxes shouldn’t have to pay for my lifestyle. Which is not only incredibly offensive but also very cruel.

My child now can’t go into nursery as the fees are so far overdue which means I am having to cancel clients left right and centre and my business has as a result made no income at all this month. My business is on the brink of collapse and it’s everything to me. I have called them every day, multiple times and no one can help except for to offer me an appointment mid July as they have “nothing sooner” for me to “prove” I work and have a premises. My business will have long collapsed by July due to the rate I’m having to cancel clients at.

what can I do? I feel completely powerless and my business had been set to make a lot of money this month. I have no one to have my children in the day time so I can work and I’m literally feeling like I’m having a breakdown due to the stress. Am I in the wrong here? Am I not classed as working because they have taken everything from me and I’m struggling to salvage this with no childcare to send her too.

sorry for rambling and bad spelling but I’m crying my eyes out

Sorry about that, OP. I don't understand why they are saying you're not working if you have a business.

Would this help OP?

https://www.citizensadvice.org.uk/benefits/universal-credit/problems-with-your-payment/challenging-a-universal-credit-decision-mandatory-consideration/

Is it that they have decided you don't work or is it that the childcare hours you are claiming for are worth more than the income you are bringing in?

How many hours do you claim childcare, and after expenses are you making minimum wage? If not then they are probably looking at it as it is not a sustainable choice as a business and are wanting to push you into actual employment perhaps?

Get a start up period

you may be eligible for a 12 month start up period if you’re self-employed. Your work coach can tell you if you can get a start up period for your business.
During your start up period your monthly earnings are used to work out your Universal Credit and the minimum income floor does not apply. You’ll also receive support from a work coach who’s trained to work with the self-employed.
You’ll need to attend quarterly appointments with your work coach, providing evidence to show that you’re still gainfully self-employed and actively taking steps to build your business.
You’re only entitled to one start up period, unless it has been more than 5 years since your previous one, and you’ve started a completely different type of self-employment.

This is from the gov website

https://www.gov.uk/self-employment-and-universal-credit

You need to ask for a start up period.

If I'm understanding things correctly - UC are saying you aren't working because on your best month, you're only making approx. £1300 a month. If that's correct, I think you need to be realistic about whether its a viable career path at this stage of life. I understand you've worked hard to build the business to where it is but if you need to outlay money for things like office rental and are not making any profits majority of the time, its not a viable business and UC are within their rights to suggest that what you're doing is more of a side hustle/hobby than a "proper" job. UC is not set up to support that lifestyle and you may need to look again at your overheads for the business to improve profit margins or seek a more conventional role. Sorry, OP.

Every business takes a while to get up and running so the previous poster doesn’t make any sense🤔 however I’ve had nothing but shit since transferring over to UC and I’m employed! Not self employed..

today they have issued my statement as only £500 as apparently my take home pay was £2217 (certainly wasn’t😂 I wish!) it was actually £1004.84, they’ve miscalculated it and HMRC haven’t been informed properly by my employer, I showed UC this on my payslip and bank statement and there still not budging 😊 I’m now struggling this month due to no fault of my own!

I also found it extremely difficult to get any sort of help with childcare, youngest being 2! Each time there was always an excuse “I’m not dealing with this, I’m on annual leave next week etc” luckily family helped me when they did this! My husband has now reduced hours so we aren’t fucked over by them again.. worst system imaginable tbh.

I would try your best to see what has happened, ask for a mandatory decision (take it further).. also write to your MP! they seem to actually move things along quicker when they have the MP communicate with them.

you sound like you’ve done incredibly well! This is just a hurdle and you’ll soon overcome it😊! Good luck x