Help & advice needed regarding change of circumstances & Universal Credit

Daniel_2021

poppy123456 said:

If you haven't been found to have either LCW or LCWRA because of a health condition then you will not have the work allowance. For example, if your earnings from self employed after expenses are £500 then you will need to multiply that by 0.63 to know how much UC you will receive. Earnings of £500 will reduce your UC by £315 so UC entitlement will be £9.84 per month. Earnings of more than £515 each assessment period there will be no UC entitlement.

Hi,
The 63% ruling doesn't apply for self employed people, it only applies to people employed by an employer normally via the PAYE system.
For self employed people the minimum income floor is applied. This was temporarily suspended during lockdowns however was reintroduced earlier this year. In short UC "assumes" you've earned 36x national minimum wage each week, if you earn less then the above assumption is used, if you earn more than your actual earnings are taken into account. You always have to report your actual earnings via your journal though.
More information can be found below:

https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/universal-credit-and-self-employment-quick-guide

Thanks, 
Daniel 

calcotti

Daniel_2021 said:

The 63% ruling doesn't apply for self employed people, it only applies to people employed by an employer normally via the PAYE system.
For self employed people the minimum income floor is applied. 

You have misunderstood how this works and that statement is incorrect. 

The MIF sets a minimum level of assumed earnings for the self employed subject to the MIF.

Normal earnings rules regarding Work Allowances and the 63% taper rate still apply. So where applicable a self employed person will have the MIF applied, the Work Allowance deducted and then the 63 % taper applied.

If dad successfully gets AA and OP is then recognised as his carer then he will not be subject to MIF.

Daniel_2021

calcotti said:

Daniel_2021 said:

The 63% ruling doesn't apply for self employed people, it only applies to people employed by an employer normally via the PAYE system.
For self employed people the minimum income floor is applied. 

You have misunderstood how this works and that statement is incorrect. 

The MIF sets a minimum level of assumed earnings for the self employed subject to the MIF.

Normal earnings rules regarding Work Allowances and the 63% taper rate still apply. So where applicable a self employed person will have the MIF applied, the Work Allowance deducted and then the 63 % taper applied.

If dad successfully gets AA and OP is then recognised as his carer then he will not be subject to MIF.

Hi,
You're quite correct my comment was wrong, i'm thinking allowed in my head and writing...I don't do multitasking.
What I wanted to point out was the MIF which hadn't been mentioned previously, I got the element correct and then lost my way.
The other bits I didn't comment on as they are hypothetical, I just wanted to cover the MIF.
Thanks for clarifying.
Daniel