I would like some advise please. Gainfully self employed. will my housing benefit stop after 1 year?

missp71

Hi all, I am self employed and have been gainfully employed for a year, receiving UC and Housing benefit whilst I grow my business. My year of being gainfully employed will be coming to an end this month. I am a bit concerned that my monthly income is much lower than the national advantage wage. I just wanted to know will my housing benefit stop after my year period is up, I'm just concerned how I will pay my rent if this happens. Any advice would be greatly appreciated. Thank ☺️

Albus_Scope

Hey there @missp71 and welcome to the community.

I'm afraid I don't know a huge deal about the housing element with UC, but hopefully one of our super smart regulars will be able to answer your query shortly.  I'm just going to pop your discussion over to the UC category, so more people in the know will be able to see it. I hope that's ok? 

missp71

Thank you Albus that is very kind of you 

poppy123456

At the end of those 12 months you don't stop being gainfully self employed. What it means that the Minimum Income floor will apply, if you're in the all work requirements group.

There are some instances where it won't apply, for example if you've been found to have limited capability for work, you claim carers allowance or responsible for a child under 3. 

If it does apply then your UC entitlement will be based on your Individual earnings threshold and not what you actually earn. This means that your whole UC would reduce, not just part of it so yes your UC could reduce to zero. 

For the avoidance of doubt, your rent will be paid with your UC known as housing element, not housing benefit, unless you're living in either supported or temporary housing. 

There's some information here on the MIF https://www.entitledto.co.uk/help/self-employment-and-minimum-income-floor-universal-credit

missp71

Hi Poppy thank you for your reply ☺️ just to clarify on my last UC meeting I was told as of the 10th May the minimum income floor will be applied and my UC is more than likely be reduced to zero, I did ask the question about my housing element because my business is barely making a profit ATM and I wasn't given a clear answer. So will the housing element continue? and will I continue to log my monthly earnings like I have been doing for the past year? 

poppy123456

It will affect the whole of your UC and not part of it because the deductions will be based on what your MIF is set at, if your earnings are below that.

Yes you need to continue to report earnings and expenses each month. 

Do you have a health condition that limits your capability to work? 

missp71

Poppy123456 I do have health conditions but most of the time I don't let it effect my capability to work or I would lose my business. Thank you so much for taking the time to reply Poppy ☺️

poppy123456

I totally get what you mean by that but sometimes you have to do what you have to do. You can report your health condition, supported by a fit note and you'll be referred for a work capability assessment. If found to have either LCW or LCWRA then the MIF wouldn't apply to you. 

If found to have LCWRA you would receive extra money from the 4th month after you provided your first fit note. You would also have the work allowance, which means a certain amount of earnings each month would be ignored before the deductions apply. See link https://www.gov.uk/government/publications/universal-credit-if-you-have-a-disability-or-health-condition-quick-guide/universal-credit-if-you-have-a-disability-or-health-condition

Being found to have either LCW or LCWRA doesn't mean you can't work, people do work and claim either of those. 

Please have a think about this because the MIF will be very difficult and your UC could be drastically reduced, even as much as to zero. 

missp71

Hi Poppy thank you again for your help. I haven't been too well recently with my mental health and my meeting tomorrow is filling me with dread to be honest. I have a long diagnosis with my mental health since my dad died 6 years ago and my marriage of 23 yes ended. I had a really bad episode 2.5 years ago that I was nearly hospitalised. I have a close family that help me massively but I do struggle daily and think I always will now. I have never claimed any benefit before and have always worked my butt off to make things meet. It's got harder the pass couple of years. I never mentioned this at my meeting because 1:I really feel triggered when I talk about it. 2: I wanted my business to succeed and I thought the wouldn't take me seriously. I have grown my business successful over the last year but i have never managed to meet the MIF except on 2 months. My capacity to work fluctuate, some days I'm thriving and some days I can't get out of bed. I'm not sure how I will manage when my UC payment reverts to zero as of tomorrow I'm expecting. I would consider finding PT work to top up my self employed earning but at the moment I would say I am not capable of holding down another job. I have no idea what to do. Sorry for the long message I'm holding back a lot. Thank you ☺️