Migration from WTC to UC...

DJKav

Hi, I'm DJKav and I'm autistic, so please bear with me.

I have until the 13th June to migrate to UC.

I'm very anxious, as I've convinced myself that I'll be worse off.

I'm self employed, caring for my mum. Who pays me out of her money, into my business account. I have an accountant who does my yearly tax returns.
I don't earn more that £6000 p/a 

I'm a single parent to an 10 (going on 11) year old daughter, whom lives with me 60% of the year.
I'm also disabled and have a PIP award for an ongoing period.
I claim WTC and CTC which does include the Disabled Worker Element, and the Severe Disability Premium for myself.

Altogether, I collect around £1,100 in Working Tax Credits + Child Tax Credits every 4 weeks. 

I really don't know anything about UC, as I've been on WTC for around 15 years. I also struggle with understanding information, as I need it presented to me in a particular way and style.

My next Tax Credits payment is on the 11th of June, Just 2 days before the UC migration deadline.

I have lots of things flying around my head.

Should I start my claim now, or wait till I get the next TC payment?

Based on the information presented, is there anything I should be aware of when I begin the claim process.

Many thanks.

poppy123456

What do you mean your mum pays you and you put that into your business account? Does your mum claim a disability benefit such as PIP/ADP daily living, DLA mid/high rate care or AA?

When you claim UC because you are self employed you will need to attend a gateway appointment with a work coach to discuss your self employed work. If found to be gainfully self employed you will have a 12 month start up period where the minimum income floor will not apply. You will still be expected to report your earnings and expenses on the last day of each assessment period. https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/universal-credit-and-self-employment-quick-guide

When you submit your claim for UC your Tax credits will stop and your first payment for UC will be 1 month and 6 days later so please be aware of that. You can request an advance payment for UC but this needs to be repaid back and your future UC payments will be reduced. 

If you have savings/capital of more than £16,000 then you will be given a 12 month period where that capital is disregarded. If after those 12 months you still have that capital then your UC will end. There will be a deduction for capital of more than £6,000, which is £4.35 for every £250 or part thereof over that amount. 

Once you claim UC if the figures of your Tax credits against UC show that you're worse off then your UC will include Transitional Protection. Unfortunately because it's so incredibly complex I will not be able to advise on that. 

If you can answer that first question then I can advise further. 

DJKav

Yes she is in receipt of high rates for both parts of PIP for an ongoing period. 
She's rather pay me as a self employed PA, rather than pay out for a stranger.
She's a retired nurse, and I've been caring for her since I was 16, after a nursing injury.

I had to give up a well paid job, due to extra caring needs for her, and my own disabilities progressing.

poppy123456

Thanks. Then when you claim UC you need to make sure you report being her carer and they will include the carers element in your claim. There's no earnings limit to this like there is with carers allowance. 

As a carer you will have no work requirements. This means if found to be gainfully self employed after the 12 month start up period the Minimum Income Floor will not apply to you. 

Although you can also report your health condition and provide fit notes, if you do that and you're found to have LCWRA then you may not be any better off. This is because if your UC includes any TP this will erode if found to have LCWRA. You also can't receive both carers and LCWRA element at the same time and you would only be entitled to the higher element, which would be LCWRA. For both of those reasons in my opinion it's probably better not to report your health condition. 

As you're responsible for a child your UC will also include the child element so you will also have the work allowance. This means that you can receive a certain amount of earnings each month before the 55% deductions apply. If you claim for help with any rent it will be £673/month, if you don't it will be £404/month. For every £1 of earnings received over those amounts your UC will reduce by 55p. See link https://www.entitledto.co.uk/help/work-allowance-universal-credit

Do you rent or own your own home? if you rent do you have liability to pay rent to a landlord?

DJKav

I bought my own home, with the savings I stored in an ISA when I was an employee, before having to give up. I currently have a mortgage of around £44,000.

DJKav

If I don't declare that I receive PIP, won't the DWP already know that I get it?

poppy123456

PIP is irrelevant for your UC claim. This doesn’t automatically entitle you to LCWRA.

DJKav

1 - Should I do my claim now, or wait till after my next TC payment?

My next TC payment is on the 11th of June, and my UC claim deadline is the 13th of June.

2 - When I click on the green 'Start Claim' button, will that trigger the claim, or can I fill out the form and submit it on the 12th of June?

Sorry for all these questions.

poppy123456

If you claim today then your assessment periods will be 17th to 16th of every month and your payment date will be 23rd of every month (unless that date falls on a weekend or a bank holiday and then you will receive payment on the Friday before) so your first payment will not be until 23rd June, which is actually a Sunday so payment will be 21st June. Though you can ask for an advance payment as I advised above.

You can start the form and save it for a maximum 28 days and go back to it to continue the form. Your claim will not start until you click "submit"

Once you've claimed you will receive your final Tax credits award notice at some point in the near future.

DJKav

So for me, I should start filling out the UC claim form, and then submit the claim after I receive my next TC payment on the 11th and submit the claim on the same day. So that the claim has been submitted before the deadline on the 13th of June?