Would my partner be penalised for taking a wage from his CIC?

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Laura90
Laura90 Online Community Member Posts: 1 Listener
edited November 2022 in Universal Credit (UC)
My partner is currently on LCWRA for Bi-Polar complex PTSD and emotional unstable personality order and has been for 3 years,
He has set up a CIC with his business partner which is now generating alot of interest and custom.
The majority of the work he does is online via video ( Zoom Teams ) when he enters depressive stage his buisness partner completes the day to day running of the buisness. 
He is currently only taking expenses out of the business and is soon to be in a position to hopefully be able to take a regular wage.
Can someone please explain what we as a family would be entiltled to as my head is going crazy as you can imangine feel like were going to be penalised.


Comments

  • Hannah_Alumni
    Hannah_Alumni Scope alumni Posts: 7,866 Championing
    Hello @Laura90

    I'm keeping everything crossed for your partner! :) 

    The best course of action here would be for your partner to speak to Universal Credit, he can do this over the phone or via in his online journal, and someone will be able to go through it with him. There are factors such as the hours he'd work each week, meaning the amount he'd bring in each week could be different month by month. Don't fret about being penalised, you aren't going to know unless you go over everything with them.
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited November 2022
    What is CIC?

    If he is a partner in a business he should have reported this as soon as he started. He will be treated as self employed and will be expected to report all business income and expenditure each month. The difference between income and expenditure will be treated as earnings. If equal partners then 50% of business earnings will be treated as his. His earnings are then taken into account when calculating his UC for the month.

    What he actually withdraws is not what is taken into account.


  • Tori_Scope
    Tori_Scope Scope Posts: 12,468 Championing
    I believe a CIC is a community interest company calcotti :) 
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    Thanks Tori. 

    If it’s set up as a company claimant will still be treated as self employed for UC although employed for tax purposes. He may be paying himself through PAYE in which case he will have both self employed and employed earnings 

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