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Self employment and claiming Universal Credit questions

4 replies

Staerke2020 · 13/10/2020 07:05

I have a question with regards to claiming universal credit whilst being self-employed.

I lost my job during the pandemic and have struggled to find anything else. I have now been given a "self-employment opportunity". It's basically a job at a call centre with all the trappings of a job, except that we are technically classed as self-employed.

Upon signing up I had to promise that I would be willing to work at least 30 hours per week and told that I would usually be able to get full time hours (35 +).

However, they have not guaranteed to me that they will give me at least 30 hours per week, or any minimum hours, which is very concerning.

Now, I've been reading about Universal Credit and been told that during the first year of self-employment, the self-employed may also claim UC for support whilst they establish their business.

So, if they didn't give me hours, I take it that I could currently claim UC if they did not offer me enough hours?

**If so, how would I prove that they had not given me the hours that I had asked for? As opposed to just not being willing to work the hours I had promised?

Also, I intend to go back to university next year, to learn a profession that would actually give me the opportunity to work freelance for myself.

This is what I have actually always wanted to do, but due to circumstances, I have been unable to attend uni previously to get the necessary qualification to do.

I'm worried that using up my first year of self-employment support year with no minimum income floor whilst I took this current job to survive, may impact my later ability to start the business that I actually want to start.

*Any ideas whether this removal of the minimum income floor for UC is only available to any individual once in their life, or is it awarded once per business?

(I am aware that the minimum income floor has been lifted momentarily for ALL self-employed due to covid, but this has been stipulated as being temporary)

OP posts:
rosie1959 · 13/10/2020 07:09

Doesnt sound self employed to me the idea if being self employed is that you work or do a service for more than one person or company

ageingdisgracefully · 13/10/2020 07:19

I would firstly check your status for self employment. Self employment is contract for services, not contract of service. There's a checklist on Gov.uk, or try acas and run it past them. It sounds to me as if you're employed rather than SE on the basis of what you've said.

As regards UC, you can claim on the grounds of low earnings. You may even qualify for other grants.

However, the lifting of the MIF is temporary afaik so no guarantee of it continuing.

The other thing is that once in place, the MIF is usually pretty much set in stone.

Bagadverts · 13/10/2020 07:25

It doesn’t matter what a contract is called if it is actually employment and you may be an employee or worker here are some of the differences.

www.acas.org.uk/checking-your-employment-rights

As regards self employment and universal credit the rules can be complicated but more importantly change regularly. Perhaps contact citizens advice.

BarbaraofSeville · 13/10/2020 15:11

Another one saying it doesn't sound like you are self employed. It's not something they (or you) can decide upon, but is subject to HMRC tests.

It sounds like they are doing this to get out of their obligations re employer's NI, sick pay, holiday pay, NMW etc.

What is their explanation re the 'technically self employed'?

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