LCWRA Self-Employment Review

J121

Hello there,

I'm looking for some help as I am seeing some conflicting Information during my searches.

I have been on LCWRA UC for just over a year now and have decided to do some self employed work possibly leading to PAYE work if all goes well.

I updated my journal a few days ago when I started work and the same day I received a letter in my journal saying I am not gainfully self employed and would need to look for work.

They then sent me a phone appointment for a self employment review which will be done just after my assessment period.

My plan is to close my claim completely when I feel I am able to earn enough to get by as the whole benefit system is exhausting and I would much rather be able to just lean on it for a couple more months until I am in a position to do so.

Some of the information I have read reports that the LCWRA would mean I do not need to search for work but in the letter they sent it now says I do?

Also i have read I can't be gainfully self employed whilst in LCWRA and therefore unless reassessment is done I wouldn't be expected to attend these appointments?

Please can someone advise on this and also if reassessment is triggered, how much notice would I be given usually? 

Any help would be much appreciated 

poppy123456

UC are totally incorrect to do this. As you were found to have LCWRA then you can't be gainfully self employed. You don't have any work commiments either and you don't need to attend any appointments as you correctly suggested.

You don't need to close your UC down once your earnings increase. Your UC will be adjusted each month depending on the earnings you receive.

As you have LCWRA you will have the work allowance, which means part of your earnings will be ignored before the 55% deductions apply. If you claim for help with the rent your work allowance will be £344, if you don't it will be £573/month.

J121

Thank you so much Poppy for your reply and commitment to helping others.

Very much appreciated and I will be contacting them In my journal to bring it to their attention in the kindest way possible 😊 

poppy123456

You're welcome. It's beyond a joke really just how little knowledge they have about their own rules.

JayJayJuliette

Hello everyone and Happy 2024. I really need some advice please if you would be so kind. I was put onto LCWRA 2 months ago, well actually longer but have recieved payment for LCWRA for 2 months now. My question is, today I went to check my payment statement in my UC account and had the shock of my life as they have deducted so much money from me for this coming payment and said it was due to the minimum income floor. But I am no longer working at my self employment business due to my illness, im pretty stressed out as my previous work coach told me that the minimum income floor would not apply to me as I was no longer gainfully employed. she told me I could keep my buisness open and if I was ever well enough to work at it again I could. I am still being asked for the last 2 months to do my income and expences or I wount get paid as it says and am not sure why now that I am having to forfit £600 of my monthly payment. How am I suppossed to pay my rent electric and buy food and toiletries.
Many thanks Jay x x
Jay Jay

carbow32

I had exactly the same letter when I registered as self employed but also a journal message to say ignore the bit about looking for work because I was LCWRA so it didn't apply to me.

carbow32

JayJayJuliette said:

Hello everyone and Happy 2024. I really need some advice please if you would be so kind. I was put onto LCWRA 2 months ago, well actually longer but have recieved payment for LCWRA for 2 months now. My question is, today I went to check my payment statement in my UC account and had the shock of my life as they have deducted so much money from me for this coming payment and said it was due to the minimum income floor. But I am no longer working at my self employment business due to my illness, im pretty stressed out as my previous work coach told me that the minimum income floor would not apply to me as I was no longer gainfully employed. she told me I could keep my buisness open and if I was ever well enough to work at it again I could. I am still being asked for the last 2 months to do my income and expences or I wount get paid as it says and am not sure why now that I am having to forfit £600 of my monthly payment. How am I suppossed to pay my rent electric and buy food and toiletries.
Many thanks Jay x x
Jay Jay

This is really wrong.  You need to sort it with them.  It is an error.

JayJayJuliette

Hi I didnt recive a letter they have just deducted £600 from my up coming payment for the 7th of April.
I have left a message in my journal for payments and also a note for my previous work coach but not sure she will get it as I am not on her list anymore, it really quite frightening and hope they dont do this to me 

poppy123456

JayJayJuliette said:

Hello everyone and Happy 2024. I really need some advice please if you would be so kind. I was put onto LCWRA 2 months ago, well actually longer but have recieved payment for LCWRA for 2 months now. My question is, today I went to check my payment statement in my UC account and had the shock of my life as they have deducted so much money from me for this coming payment and said it was due to the minimum income floor. But I am no longer working at my self employment business due to my illness, im pretty stressed out as my previous work coach told me that the minimum income floor would not apply to me as I was no longer gainfully employed. she told me I could keep my buisness open and if I was ever well enough to work at it again I could. I am still being asked for the last 2 months to do my income and expences or I wount get paid as it says and am not sure why now that I am having to forfit £600 of my monthly payment. How am I suppossed to pay my rent electric and buy food and toiletries.
Many thanks Jay x x
Jay Jay

Put a message onto your journal under the payment section and remind them that you were found to have LCWRA is the MIF can't apply to you. They will need to recalculate your statement before they can repay what it is owed to you. Make sure it's under the payment section that you post it because this was a case manager will see it. 

JayJayJuliette

I meant  the7th of Feb 2024

JayJayJuliette

Hi Poppy Thank you so much I did leave a message in  the about a payment marker in my jounal to say an error has been made as I havent made any money and that I am on LCWRA and for them to rectify it asap.
Poppy do think that will be enough of must I write again? Thank you Jay-Jay x x

carbow32

Depending on how long you think you maybe too unwell to participate in your self employment, is it worth deregistering as self employed and then registering again when you feel more up to it.  Just a thought.

JayJayJuliette

Hello Carbow How do I deregister please?

carbow32

JayJayJuliette said:

Hello Carbow How do I deregister please?

You can do it within your UC account.  Change of circumstance that you are not self employed anymore.  

poppy123456

carbow32 said:

JayJayJuliette said:

Hello Carbow How do I deregister please?

You can do it within your UC account.  Change of circumstance that you are not self employed anymore.  

To de-register would mean reporting the changes to HMRC. (if you were registered) You don't do that with UC. https://taxaid.org.uk/guides/information/a-starting-point-for-the-self-employed/self-employed/previously-self-employed 

If no longer self employed for UC you just report a change of circumstances and tell them you're no longer self employed, as you correctly advised. 

JayJayJuliette

Thank you Poppy I just tried and there isnt an option in UC for self employment, there was only an option for work and earnings in make a change and I clicked cancel quickly as I dont want to mess things up  that might stall my payment on the 7th

poppy123456

That's exactly where you need to report the changes that you're no longer self employed. It's all under employment/earnings, regardless of what work you do/did.

Nothing will happen to your payment on the 7th, you will receive what it says on your statement. Just make sure that when you put the message on your journal that you actually "ticked the payment box." As you don't have a work coach it will be very difficult to get a reply putting the message anywhere else. 

Do be aware that it may not be sorted in time for your payment on 7th. 

JayJayJuliette

Thank you Poppy x x

JayJayJuliette

Hi Carbow and Poppy I just looked again and there is no option for, you are not self employed anymore Ive checked and double checked and there is nothing to click on for that, it only has if you are self employed but no where to state that you are no longer.  Thank you both very much anyway I really appriciate the help
ML Jay-Jay

poppy123456

JayJayJuliette said:

Hi Carbow and Poppy I just looked again and there is no option for, you are not self employed anymore Ive checked and double checked and there is nothing to click on for that, it only has if you are self employed but no where to state that you are no longer.  Thank you both very much anyway I really appriciate the help
ML Jay-Jay

You just put in the work and earnings section.

carbow32

Login to your Universal Credit account.

Click Report a change

Click Work and Earnings

Follow through with the questions