Universal credit is being used as a hit on the self-employed

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Universal credit is being used as a hit on the self-employed

Post by Mary_FV on Sat Jun 10, 2017 11:39 pm

Universal credit is being used as a hit on the self-employed
http://www.newstatesman.com/politics/june2017/2017/06/universal-credit-being-used-hit-self-employed

I advise people to think very carefully before pursing self employment, particulary part-time.

https://www.citizensadvice.org.uk/benefits/universal-credit/before-you-apply/self-employed/
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Re: Universal credit is being used as a hit on the self-employed

Post by Absolut on Sun Jun 11, 2017 8:04 am

I have heard both work programme providers and DWP staff "recommending" self employment to claimants. None of them had even heard of IR35 or "disguised employees".

http://www.contractorcalculator.co.uk/what_is_a_disguised_employee.aspx

There are three main tests of employment to determine whether a contractor is a disguised employee and not genuinely in business on their own account. These are:

Control: if a contractor is told by their client where, when and how to complete the tasks allocated on their contract, they have passed the control test.

Substitution: if a contractor cannot send a replacement, or a substitute, to complete the tasks for the client on their behalf, they have passed the substitution test.

Mutuality of obligation (MOO): if a contractor expects the client to give them work, and the client expects the contractor to complete it, they have passed the MOO test.

In other words if you have no control over your work, who you work for and how you work it's not self employment.

On top of that many people can't afford to pay the public liability insurance that they need to be self employed. The DWP don't tend to take that into consideration either when "encouraging" people to be self employed.

One mum described how after the move to Universal Credit she can no longer plan the household budget. The reason is because of the way UC has been implemented. If her partner has good earnings in one month, their universal credit is reviewed and the award reduced for the following month. If in that month her partner had a low income, then any rebalancing won’t take place for another month.

Being a month behind also applies for people on ESA or on JSA who have an income. It is not exclusively something that only happens under UC. What is happening is that people who weren't subjected to such flucutations before are now being dragged into the UC net.
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Re: Universal credit is being used as a hit on the self-employed

Post by Mary_FV on Sun Jun 11, 2017 8:19 am

Fake self-employment in the Work Programme
http://indusdelta.co.uk/discussion/fake_self_employment_work_programme/12156

Bernadette Meaden wrote:Anecdotes abound. For instance, if a claimant mentioned they enjoyed baking, they would be encouraged to 'go self-employed' and set up a cupcake business. In 2013, the BBC reported this phenomenon, looking at six Work Programme providers. It found clients of all six providers who said that they were "encouraged to either pretend to be working for themselves or to set up businesses they did not consider viable."

Single mother Joanna was encouraged by her Work Programme provider to set up a gardening business. She would need to work sixteen hours a week to claim tax credits, but, "It was suggested to me that in the winter – when I have a down season and I would probably have no hours work a week – that I could invent the whole 16 hours a week, which I think is totally unacceptable."

http://www.ekklesia.co.uk/node/22173
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Re: Universal credit is being used as a hit on the self-employed

Post by Absolut on Sun Jun 11, 2017 12:48 pm

Yes, such reports are always referred to as "anecdotes" if a benefit claimants says them, but "the truth" if a government minister claims the opposite Shocked Laughing
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Re: Universal credit is being used as a hit on the self-employed

Post by Mary_FV on Sun Jun 11, 2017 6:13 pm

Indeed A!

I know for a fact what you are saying is true! I have helped people who have had their Tax Credits stopped completely following wrong advice from the work programme and DWP staff.


Last edited by Mary_FV on Mon Jun 12, 2017 2:44 am; edited 2 times in total (Reason for editing : correction)
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Re: Universal credit is being used as a hit on the self-employed

Post by Rebel-1 on Sun Jun 11, 2017 7:09 pm

I was Self-employed 1990 to 2009 and it was very rewarding, BUT it was a 7 day week 12 hours a day for the whole period, No Holidays, working when ill or recovering from Injuries;
you have to be very strong and tough to survive, I was also working away from home much of the time, sleeping in my Transit-Van to save money, was good for a long time, but fell apart after the world-Wide financial collapse in 2008. After that it all went to shit.
As stated in above posts; Self-employment is not a "Magic Fix" think about it before going down that road.

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