Benefits with seasonal income and saving for quiet parts of the year?

[Fantasiatallis]

How does this work?

I’m self employed, working around the kids school hours. One child has sen so my work needs to be flexible enough that I can cope if, for example, I can’t get him to go to school on time, or I have to pick him up early. I get dla for him.

Dh and I may be separating. I’m trying to work out the logistics of keeping my job and claiming benefits to top up my income.

I earn about 12k per year. But the 12k isn’t spread evenly, ie 1k per month. I invoice every half term and only work term times. June till xmas (6months) I earn maybe 3K, jan to April 5k then the other 4k is before exams finish, working flat out may-June.

So, at the moment, I save during my peak income, to supplement my quieter months.

How would this work were i to claim benefits as a single parent?

Thank you.

Savings below £6k are disregarded, so if the money you save is to just manage cashflow throughout the year it's unlikely to build up to more than this.

However, your income is counted in monthly periods not annually so in the months when you receive payment for an invoice you wouldn't normally receive UC because it will look like your income is high.

If you have periods where you receive no payment for work in a month you may get more UC but it won't be enough to make up for what you lose when you get an invoice paid. They might also pester you to earn money because the system will see you as being out of work for that period even if you have been working but you haven't been paid.

I don't know if there is any way to get this recognised an annualise your UC claim due to irregular income?

Is there any way you could invoice monthly for the service you provide? Or can you do it employed rather than (presumably) self employed, even if you earn slightly less?

I've no idea how it would be treated in reality and you'd need to make sure the costs could be minimised, but... I'd wonder about setting up a Ltd company and paying yourself monthly from it, to smooth out your income. (that payment would probably best be a mix of salary and dividends to optimise the tax situation but I might be wrong)

What savings, if any, are you likely to end up with in a financial settlement? That could make the question irrelevant at least to start with.

I agree that changing how you invoice to monthly where possible would seem appropriate even if inconvenient. I do understand where you're at though, I invoice half termly myself.

You wont be pestered to look for more work on UC if you are a carer for your child in receipt of DLA.
Do you currently own your home ? If that will be sold and leave you with savings in excess of 16k then you will not be able to claim UC. It can be disregarded as capital if on the market.