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Query about universal credit (limited capability work related activity)

sorcha41
sorcha41 Member Posts: 1 Listener
edited August 2020 in Universal Credit (UC)
Hi. I have a query about universal credit, limited capability work related  activity.
I have been getting lcwra for a couple of years now. I also get PIP
I would like to start selling craft online. I am looking in to it at the moment, but haven't actually started selling qnything yet. 
Is this allowed under the UC rules. If this is possible then might /   will this affect my benefits. Are there any limits on the amounts I can earn. If I was to set up as a first time business .... is this allowed
Look forward to hearing from you
Ms S Roberts

Comments

  • poppy123456
    poppy123456 Member Posts: 25,645 Disability Gamechanger
    HI and welcome,

    This would be classed as self employed and if you will need to register with HMRC. There's a guide here that tells you what you need to do. https://www.simplybusiness.co.uk/knowledge/articles/2019/11/how-to-set-up-as-self-employed-with-hmrc-uk/

    As you have LCWRA then you'll have a work allowance, which means you can earn a certain amount of money each monthly assessment period without it affecting your UC. Once you go over that amount then your UC will be reduced by 63% for every £1 you earn.

    The work allowance amounts are as follows.
    If you claim the housing element in with your UC amount then your work allowance will be £292 per month,
    If you don't receive the housing element then it will be £512 per month.

    Being self employed you will need to report your earnings and expenses on your journal every month.

    Yes people do work and claim  LCWRA but please be aware that if the work you do contradicts the reasons why you're claiming LCWRA then you could be reassessed early and the decision coulc go against you, once it's made.

  • janer1967
    janer1967 Member Posts: 13,342 Disability Gamechanger
    Hi and welcome @sorcha41 Glad you have joined us and I hope the info given is useful.

    What sort of crafting do you do
  • Chloe_Scope
    Chloe_Scope Scope Posts: 10,566 Disability Gamechanger
    Welcome to the community @sorcha41! Great to have you with us. Please do let us know how you get on. :)
    Scope

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