New Self Employment Help

HelenNMO

Hello, 

I'm on UC with LCWRA element, also getting enhanced PIP on both counts. My partner is my full time carer and gets carers allowance. I want to become self employed selling vintage items from home. I can buy online and sell via Etsy/Ebay or something similar. It's minimal work, I don't plan on earning a lot of money because I'm not well enough to put that kind of time in. Just a bit of extra pocket money, y'know?

But how will registering as self employed affect my UC? Will they deduct 63p per every £1 I earn? If so I honestly don't think it's worth my effort.

Every time I've looked into this and asked for advice (even from benefits advisors, citizens advice, the DWP themselves etc) nobody seems to be able to give me a straight answer, and I end up completely demoralised and just don't bother taking it any further. 

Has anyone been through this themselves?

Thanks in advance   

Ross_Scope

Hi @HelenNMO

Hope you're well

Sounds like an interesting idea, what sort of items would you sell? 

Personally I'm not sure how this would impact your benefits, it might depend on how much you earn through it. I'm sure somebody will be along who has a better answer for you though.

poppy123456

HI,

As you have limited capability for work then you will have the work allowance, which means you'll be able to earn a certain amount of money each month without it affecting the amount of UC you're entitled to. If you claim the housing element in with your UC amount then you'll be entitled to £292 per month, if you don't have the housing element then it's £512 per month. This means that you'll be able to earn that amount of money before the 63% deductions apply. See link. https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances

For self employed then you will need to report your earnings and expenses on your journal each month. Some information here.

https://www.gov.uk/self-employment-and-universal-credit

Your PIP will not be affected.

If you're claiming council tax reduction then you will need to report the changes to your local council because earnings may affect the amount of CTR you're entitled to.

Although people do work and claim LCW and PIP do be aware though that if the work you do contradicts the reason why you're claiming both of these then you could be re-assessed early and the decision could go against you once it's made.

Hope this helps.

cupcake88

Great advice from above . I used to sell things online also make Home made Things I’m still registered as self employed . If you earn more than 1000 pounds a year doing self employment you will have to register as a sole trader and file a tax return . 

Tax aid are really good at advising people on a low income there all accountants that volunteer there time prehaps give them a call . 

HelenNMO

Thank you all for commenting.

@poppy123456

The work allowance thing is great, thank you! 

I do worry about the possibility of a reassessment being triggered though. Everything I would be doing can basically be done sat on my backside  so that's ideal. I can even get parcels collected from the doorstep so I don't have to get to the post office. And my partner (my carer) can help with anything difficult like packaging. I know that - but I worry how it will be interpreted by the system. I really don't have the strength to cope with reassessments and all of that stress. I have a 10year PIP award which is something I reeeeeally don't want to lose.

It's so easy to end up demotivated. There's nothing at all about the current welfare system that encourages disabled people to work!

poppy123456

For the work capability assessment, even those that don't currently work can be reassessed anytime from 3 months. There are people that work and have limited capability for work. Personally, i've never worked since i've been in the Support Group for ESA.

It's entirely up to you what you decide to do but if you do go ahead then you will need to report the changes on your journal, just to let them know that you're working.

HelenNMO

@poppy123456 I've not worked either. I tried to volunteer before and just couldn't manage. I don't even know if I could manage self employment to be honest with all of the paperwork etc, but I'd like to give it a try at least. 

I'll have to have a good think over Christmas. I've only just got to a point where I'm feeling settled and actually getting all of the benefits I'm entitled to - am I ready to rock the boat on the off chance it'll work out? Hmm. I don't know! 

Glad I found this discussion board though, seems like a really friendly bunch. Thank you again for all of your advice!