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Universal credit and self employed

5 replies

lifeisrubbish123 · 27/02/2025 08:11

I am posting on behalf of a friend who needs some help but we can't do this anonymous online and the person she rents from would see.

My friend and her husband are both registered as self employed and subsequently they now both hit the minimum income floor every month even if they don't due to separately being self employed over a year. He tends to hit his bur she's hasn't been by time her expenses come out.
She rents a chair in a salon where we both have been working but let's say that's a story in it's self but for lots of reason she needs to leave. Currently she pays £360 a month for the chair plus although the chair agreement states it should be includes the salon owner is shit and won't provide toilet roll, the drinks etc for the clients as doesn't want to spend the money plus she also uses all of my friends shampoos etc to wash hers and her kids hair daily. She has found a place to rent of her own for £500 pcm which actually means that she will be spending roughly the same she's worked out.
She has to give two weeks notice at the current salon but will not be going into work due to the bullying.
Anyways our questions are...

  1. could she apply to universal credit and ask if for a few months they don't hit her with minimum floor whilst she is moving businesses?

  2. if not the above could she ask at least for a months grace.

  3. if she was to essentially cease trading of this name she is running under and was to set up a new nake for the the new business and set a new business up then would she be able to register it to UC as a new business and avoid the minimum income for the first year as it's starting up

OP posts:
Nonametonight · 27/02/2025 08:20
  1. Only if she's willing to work search for the period she's not affected by the minimum income floor. That would mean spending 35 hrs per week looking for work and being ready to accept a job if one is offered
  1. She could ask but it's unlikely to be granted. As far as I know work coaches don't have discretion to lift the minimum income floor
  1. No, she can't get a new startup period by changing the name of her business

It sounds like she's struggling to make her business pay. She may need to look at whether she could increase her hours or put up her price

Some jobcentres have self employed work coaches who can give advice on improving the business's profitability

Nonametonight · 27/02/2025 08:22

Is your friend sure she's spending £140 per month on toilet roll, tea and coffee and the shampoo that's being filched ? It seems like rather a lot

lifeisrubbish123 · 27/02/2025 10:30

@Nonametonight
Yes she is.

Last month alone she spent £200 on shampoos. She got through twice the amount of bottles that she did with the same clientele base before this lady took over the salon lease. She has been marking the bottles when she leaves everyday and by the time she is back on 4 days later the bottles are practically empty etc.

She has an order with the coffee pods etc and she worked out that out of the pods she bought that her clients in the month inly used 25% of them. But the women who owns the salon daughters make at least 2 of the hot chocolate each per day. She has really worked it all our xx

OP posts:
Blondeshavemorefun · 27/02/2025 19:51

I’m se and have to hit minimum floor but my expenses come out after so I always hit it iyswim

Jellycatspyjamas · 05/03/2025 09:54

If she’s moving to another salon will her current clients move with her, so she’s not starting from scratch, not needing to build her business in the same way. Has she spoken to the new owner and told her she’ll reduce her rent payments to account for the goods being used when she isn’t there!

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