Universal credit

[damnthisvirusandmarriage]

I run my own little business. Doesn’t turn over a lot. Profit last year was £8.5k

I’m not separated. And they said something g about minimum floor. If o don’t earn a certain amount through business will they make me close it? Or get another job (impossible for childcare).

How on Earth will I survive this. TY eh won’t pay towards the mortgage. I might aswell get with my Abusive ex so that we can afford to eat and be housed. Not even joking

And I have to pay hundred upfront in childcare costs. I don’t have it. God knows where I’ll get this from.

What line of business are you in?

This would be on the basis of your children's age and that if you can't earn the equivalent of name working ft then your business is not profitable enough.

This came about from the increasing number of people calling themselves self employed selling things on eBay as a hobby and happy to claim maximum benefits for many years.

Children are 4&6

It’s a lovely little business 😔very outing if I say what. I could sack a member of staff. But then they’ll be on UV. Viscous circle

@dontdisturbmenow

This would be on the basis of your children's age and that if you can't earn the equivalent of name working ft then your business is not profitable enough.

This came about from the increasing number of people calling themselves self employed selling things on eBay as a hobby and happy to claim maximum benefits for many years.

Yes exactly this. The minimum income floor for you will be calculated based on the age of your youngest child. they will expect your business to be viable and to be earning a certain amount. The MIF is temporarily suspended at the moment due to covid, I don't know when it will be re-instated. So if for example your MIF was 25 x nmw per week and your business doesn't make that amount your Uc may be calculated as if you did earn that much regardless of whether you actually did or not. Self employment is complex on UC. Are you separating from your partner?

@damnthisvirusandmarriage

Children are 4&6

It’s a lovely little business 😔very outing if I say what. I could sack a member of staff. But then they’ll be on UV. Viscous circle

Yes so it would be 25x nmw you would be expected to aim for.

@damnthisvirusandmarriage

And I have to pay hundred upfront in childcare costs. I don’t have it. God knows where I’ll get this from.

There may be help available form the flexible fund at the job centre to help with childcare fees maybe - worth asking your work coach if there's any help available. Child care fees paid during your assessment period are refunded in the payment seven days after your assessment period ends.

Uc doesn't pay towards a mortgage but you do get a much higher work allowance when you don't claim the rent element of Uc meaning you can earn £512 a month without any deductions for earnings, which really is fairly good.

Yes, UC will only pay housing costs towards rent. You can't get anything as a home owner to pay a mortgage. It sounds like you might be able to reach the minimum income floor once it returns if you push your business but you will probably struggle to pay a mortgage whatever.

@Doyoumind

Yes, UC will only pay housing costs towards rent. You can't get anything as a home owner to pay a mortgage. It sounds like you might be able to reach the minimum income floor once it returns if you push your business but you will probably struggle to pay a mortgage whatever.

But home owners get a much higher work allowance if you have kids on your claim.

Baby, OP said she was making £8.5k pa. She would need to be earning more like £11k because of MIF which she might be able to achieve. On less than £20k income, I doubt she could cover a mortgage.

I think this is is one of those situations where you have to admit defeat tbh. The business isn't earning enough for you to justify it.

@Doyoumind

Baby, OP said she was making £8.5k pa. She would need to be earning more like £11k because of MIF which she might be able to achieve. On less than £20k income, I doubt she could cover a mortgage.

I guess that depends whether she has CM coming in as well? Not sure whether op meant to say she was separating?

Also some people have very low mortgages especially if they have had them for some time, or she may be able to extend the term of the mortgage over a longer period to make it affordable.