Universal credit and self-employment

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I’m just migrating over from ESA (support group) where I did a small amount of permitted work. for context, I made under £2000 in the last tax year. I am too unwell to work so this is more for my self-esteem and sense of self-worth than anything else.

I am self-employed and take on projects. These last 2-6 weeks and earn me £4-800. I then submit an invoice to the company that has employed me and eventually receive payment. This is usually then followed by several months without work.

How do I manage this when reporting income? Do I just lose most of the UC in the month in which I receive payment? Is there any way round this? Or have I misunderstood? How do other people with unpredictable and sporadic income manage this?

If you are in the support group then that will mean you will have the LCWRA element on your Uc claim. This will mean that you ahve a work allowance meaning you can earn up to a certain amount without earnings affecting your total UC. the amount will depend on whether you will be claiming help with rent or not on UC. So even if you had £800 of earnings to declare in one assessment period, there would not be much of a deduction. Anything over the work allowance is deducted at 55p in the pound, so you would lose 55p of UC for each pound you earned above your work allowance.

As @Miley23 says the work allowance and taper rate mean, an this is fundamental to the design of UC, that you will be better off in work.

The difficulty for Self Employed claimants is the need to show (a) they're gainfully self employed and (b) after a year they're subject to the Minimum Income Floor. However, as you've got LCfWRA, neither of those should apply.

Thanks, both. You’re right - I do have a work allowance. It looks as though I’ll lose 55p for every £ above my allowance, even though the total would be under the allowance for the two months. it doesn’t look like there’s any way round that?

Are you able to issue an interim invoice and then a final one, in different months?

I could try. I’m embarrassed to admit I’m on benefits! They know I’m disabled - I’m constantly going in and out of hospital so they had to know - but I like to give the allusion of being a proper member of society! I wonder how I could phrase it…

But do you only “lose” the money in the month you have the extra money? I don’t see the problem if so?

You could just say you've been reviewing your business practices and you've decided to change to that way.

If they ask and if you feel comfortable then you could explain why, but I wouldn't lead with that because it's a perfectly reasonable way to do business.