Universal credit and company director and owner

[Connie826]

Hi

I’m the sole director and shareholder of a limited company.

Does anyone have any experience of claiming UC when in this situation? I don’t earn very much so I think I’m entitled to claim, however I feel the whole process will be hell.

Anyone happy to share their experience?

UC isn't great for self employed people. How long have you been self employed.

www.rightsnet.org.uk/universal-credit-full-service-guidance
The guidance is on here for UC- just scroll down to the self employed sections

You maybe able to claim benefits if you have a low income. How you claim it would depend upon whether your self employment was non substantial, or substantial - or wording to that effect.
Non substantial (only working for a few hrs) You will have to provide them with a monthly breakdown of your income and costs and they will top it up with benefits, obviously what you get will vary dependent upon your profit each month, so the payment will fluctuate. Also you will have to be looking for work and attending the job centre each week, to meet with your job coach.

I did the above for a month, but lost the will to live for the amount of hoops they have you jumping through to get a pittance, it would be easier to get a part time job and slightly less demoralising. I have worked my entire life, my circumstances changed and i wanted to explore my options, this one wasn’t for me.

The other alternative is to say you are substantially self employed, if you’re working 40 hours per week, and your profit means you are working for £3.50 per hour, they will to pay a nominal sum to top it up.

You can only apply, just be honest about your earning and see what you are entitled to, but imo if you can get something part time, or full time if the business is not working then that is easier than trying to navigate the benefits system.

Perhaps you could get a second job to supplement your income rather than just expecting taxpayers to subsidise your non-viable hobby business?

@jemihap what enjoyment do you get out of being negative and attacking people?

You know what they say, 'if you don't have anything nice to say....'

In tax law, someone who is a director/shareholder of their own limited company isn't "self employed" - that's a term for sole traders and partnerships not limited companies. For tax, a director is taxed as an employee. For UC, the circumstances of what work you do and how you do it dictate how your business is regarded, i.e. whether you're an employee or self employed.

"Claimants who run their business through a company, all company directors and all sub-contractors will be required to attend a gateway interview to decide if they are gainfully self-employed."

"Self-employed gateway interview
Claimants must bring information and evidence about their self-employment to the gateway interview so a gainful self-employment decision can be made. During the gateway it must be considered whether the claimant is:

1. in the correct regime (for a gainfully self-employed decision)
2. self-employed or employed
3. gainfully self-employed

Where a claimant is found to be gainfully self-employed a decision then needs to be made to whether the claimant is either eligible for a start-up period or have the Minimum Income Floor (MIF) applied."