Britchick wrote: I'm not making any profit from my self employment
It is quite common with single parents on benefits who, when who their Income Support benefit stops when their youngest child turns age 5, to suddenly claim they are now self employed even if their income is zero. By doing this they can continue to avoid going out to work, or having to claim Jobseeker’s Allowance and being put on the work programmes, and their benefits will only reduce by £20 a week. TBF, it’s not just the single parents who do this but it is very common for single parents to do this when their benefits are reduced when their youngest reaches age 5. Under Universal Credit, that will reduced to age 1.
The problem is that it so common that the successive UK governments have decided to end that benefits abuse by replacing Tax Credits with Universal Credit. However, as it is taking a while to roll out UC, they intend to start to tackle the self employment/WTC abuse first, before Tax Credits are replaced by Universal Credit.
Britchick wrote:
The new universal credit will continue to help start-up businesses!
A
start-up business will still be supported by the welfare state, but it is only regarded as a start-up for 1 year from when the claimant started self employment. After that, the self employed claimant will have their welfare claim based on them earning a set amount each week at national minimum wage, even if they don’t earn that much. i.e. if their UC requirement is to earn at least 35 hours a week at national minimum wage, then their entire benefit claim will be based on them earning £227.50 per week, even if they don't earn that amount. The welfare state will no longer support a failed business or a hobby business.
Starting another business and asking for welfare to support that business instead, won't work either as they have already foreseen that abuse and stopped it. Claimants will need to wait 5 years before they can ask welfare to support another business for 1 year and the criteria will be harder to meet for benefits support to stop the abuse.
Britchick wrote:
You must be really bored, bitter person to sit on a forum judging people without facts.
It’s the government who had the facts and sat in judgment, as they have a duty to not waste the tax payers money. This “abuse” as the government called it, of the Working Tax Credit benefit by the self employed, was mentioned again in their Autumn statement. As was their intention to start to stop this abuse in April 2015 instead of waiting until all the self employed people are eventually moved onto Universal Credit over the next few years. That statement also said that all self employed claimants must now register with HMRC as self employed if they want benefits.
I appreciate it will be a shock to those that abused the welfare state for years or for those who planned to abuse the system, but the UK's welfare state will return to what it was invented for and will cease to be the lifestyle choice it has become for some.
It doesn’t matter what party you vote for as Labour have already said they intend to continue with Universal Credit and support further welfare cuts.
If it makes you feel any better, those on PAYE claiming the benefit Tax Credits, are going to have massive changes too when they lose their tax credits and are moved onto UC instead.
Britchick wrote: My son from a previous relationship has specialist needs and my care.
If you can't work because of your oldest child, then claim the appropiate benefits for him. If they agree that he needs your care and you can't work, then they will provide benefits. Using self employment that doesn't pay much to avoid getting a job, won't be an option soon for benefit claimants.
