DH and I separating just as I set up my own business how does universal credit work?

[youreonyourownkidyoualwayshavebeen]

So for the last few years I've worked a mixture of self employed and employed.

Last month I decided to give up my employed role and to fully self employed.

Then DH and I split up.

So for the last 6 months I've brought in about 800 through part time self employment, but by about February I should reliably be bringing in around 3k per month (this is a reliable figure as I freelance for an org who give me the work and they have loads of work).

For the next couple of months I'll need UC to pay mortgage and feed the kids, after that I hope not to need it.

I'm scared about being overpaid UC and having to pay it back and getting in a pickle. Can anyone tell me how UC works when you are self employed? Do you just tell them every month how much you've earned?

At the end of each month you have to report your earnings. It will ask you how much you earned through self employment, if you paid tax, pension, any expenses and vehicle use and based on all of those it's calculated by how much you received in income. You'll likely have the child element applied as well which will make up part of it.

I'm self employed freelance and I've not had any issues, they haven't pushed to find work as they know it's sometimes volatile. If I earn more I get less or nothing at all because I've earned enough to not needed it. So it changes month to month, based on earnings of that month and not over or underpaid.

In the first twelve months they give you a breathing period where the minimum income floor calculation isn't applied so you have more leeway as to how much you receive based on earnings. After that they expect you to earn X amount I think if I remember rightly.

You should be okay though, people I've dealt with have been very helpful and understanding I'm trying to run a business which I wasn't expecting tbh.

Welcome to the freelance world, hope it goes well!

I don't think you get the housing element of UC if you're paying the mortgage. You only get it for rent.

I don’t know much about it, but could you be eligible for a government start-up grant?

There is also entrepreneurs’ tax relief for people starting up businesses.

Contact your local council as there may also be a local grant or incentive scheme.

Thanks all, I'm not too worried about the housing element (DH is still paying the mortgage then I make a contribution to him).

I'm not sure I need a startup grant given the nature of my business.

It's not being a Personal Trainer but I'll use that as an equivalent - I work as a sole trader with very few overheads except travel and am on a zero hours contract with a gym who passes me as many referrals as I can handle.

So I don't think I require any startup money?

I'm already up and running it's just that I've jacked in my 3 day a week paid role as the two days freelancing paid more so now I'll freelance 5 days a week.

That's really helpful to know re: reporting being monthly. I know how much I'll earn on average but some months are lower than other for e.g. Christmas and summer when clients go on holiday.

Assume you're aware of HMRC's position on self employed working alarmist exclusively for one client?

You'll have to translate that into English, sorry.

I don't only work for one organisation though if that's what you mean when you said client?

@anythinginapinch can you please explain more about your post?