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Query about universal credit (limited capability work related activity)

sorcha41sorcha41 Member Posts: 1 Listener
edited August 2020 in Universal Credit
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

Replies

  • poppy123456poppy123456 Member Posts: 22,218 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.

    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
  • janer1967janer1967 Member Posts: 9,173 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_ScopeChloe_Scope Scope Posts: 10,652 Disability Gamechanger
    Welcome to the community @sorcha41! Great to have you with us. Please do let us know how you get on. :)
    Community Partner
    Scope

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