Remaining politically neutral during General Election 2024


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Starting a business on limited capability for work

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emmaline66
emmaline66 Community member Posts: 1 Listener
Hi
I would like to start up my own business again. I am on limited capability for work. Has anyone done this? I'm worried I will loose everything I get, which would make starting a business impossible. 

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  • poppy123456
    poppy123456 Community member Posts: 56,208 Disability Gamechanger
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    LCW is part of UC. People do work while claiming this. Starting your own business would mean you will be self employed. If you start doing this then you will need to report a change of circumstances and tell them you're self employed.

    You will need to attend your local job centre for a gateway appointment which is standard procedure for newly self employed people. During this appointment you will need to tell them about your business. There's some information here. https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/universal-credit-and-self-employment-quick-guide

    You can ignore the part about minimum income floor in that link because you have LCW so it doesn't apply. 

    You will need to report your earnings and expenses on the last day of each assessment period going forward. 

    You will also have the work allowance, which means a certain amount of earnings received each month will be ignored before the 55% deductions apply. If you claim for help with the rent it will be £379/month, if you don't it will be £631/month. 

    You do need to be aware that if the work you do contradicts the reasons why you were found to have LCW then it could go against you at your next review. Though many people work while claiming this. 
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
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