Self-Employed but no work

LATEST UPDATED: Even better update for self employed – earings will be covered 80% just as employed!!! (See https://www.ftadviser.com/your-industry/2020/03/24/government-set-to-pay-80-of-self-employed-income/ ) The bill is still going through parliament but will likely go through.

It’s confirmed –> https://www.bbc.co.uk/news/uk-52053914

For those with no self-employed filing for 2018/19 see below

If you have historically been self-employed but now have no income due to all the work drying up then this page is for you. It’s a minefield of complexity but seems you can still qualify for universal credit, so far I have gathered some information:

  • Self employed people can get  universal income and help
  • The Minimum Income Floor has been abolished until further notice. This means even if your self-employed income was low you can now qualify for universal credit. See https://www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/how-the-minimum-income-floor-works-if-youre-self-employed/
  • You must be  ‘gainfully self-employed’ which means there must be a prospect for you to remain self-employed in the future. If you are not gainfully self-employed you must file under the normal thing as just unemployed. See https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/self-employment/
  • If you are newly self employed (less than 12 months) they look at your month to month earnings to determine the income floor and you have to prove your business/self-employment is viable. See https://www.gov.uk/self-employment-and-universal-credit
  • The tax year ends 5 April 2020 and the new one starts 6 April 2020 – * SPECULATION: you could end your self-employmentness by filing a tax return that you’ve closed your sole trader/self-employedness

Links:

  • https://www.gov.uk/self-employment-and-universal-credit
  • https://www.gov.uk/employment-support-allowance
  • https://www.turn2us.org.uk/Benefit-guides/Universal-Credit-income-and-capital/Self-employed-earnings
  • https://www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/how-the-minimum-income-floor-works-if-youre-self-employed/
  • https://www.moneyadviceservice.org.uk/en/articles/universal-credit-for-the-self-employed#how-do-i-show-im-self-employed
  • https://www.nidirect.gov.uk/articles/employedself-employed-while-claiming-universal-credit