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    Hi could someone please help me. I am starting a new job and trying to work out how I will be best off financially. I am single claimant over 25
    have 3 children (girls) born 2008, 2018 and 2020. Rent is 710 pcm. With my new job I will be responsible for paying my own tax, so I suppose self employed/sub contractor type thing. I will be receiving £10 per hours before tax. How many hours would be best for me to work (part time). I tried to do the calculator and just seemed to be working at a complete loss? Many thanks in advance.

    Rubez08 hi

    with self employment it works a bit differently

    You will have a 12 month “start up period” when you go self employed
    Each month you will get sent a “to do” on your to do list where you would report income & expenses
    The difference (income - expenses) = profit
    So the profit would be used as your earned income when calculating earnings deductions on your uc

    After 12 month you will have another appointment to determine if you are gainfully self employed. If you are then you will have a minimum income floor set which is what they expect you to earn based on your circumstances - if you earn less than the mif they will still use the mif amount to calculate your deductions

    So its really hard to say what would be best for you hours wise as we cant predict what expenses/profit etc you will have as it isnt as simple as wage x hrs = income

    Are you affected by the benefit cap?
    If you are, ideally you want to be working enough that after expenses you have income of £617 a month to lift the cap

    I’m going to pop some links below for you aswell to have a read through regarding self employment & uc


      This link is also from our website which has further links at the bottom explaining sub sections of self employment such as the mif, expenses etc


        This is where I am confused. How it works is, I get paid an hourly rate or £10 per hour, have to save 20% for my tax (although I don’t think I will be earning enough to pay tax) and that’s it. I won’t have any expenses. It is a palliative care company they just don’t use PAYE I guess. So would I even be classed as self employed?

        I am effected by the benefit cap yes. This month they took 7p from my benefits (unemployed atm) but I don’t receive child benefit for my youngest so they would take that as well if I did. I have a meeting at the job centre tomorrow and I just want to go in there with as much information as possible.


          Yes you would be self employed if they arent paying you via reporting in the normal way an employer otherwise would

          So you would register as self employed with a utr number etc

          would there be any expenses such as fuel etc?

          I would definately try to earn at least the minimum to make you exempt from the cap - or enough that after earnings deduction there isn’t enough to still be capped which would be much as your cap isn’t very high

          Really, it would be down to personal choice of how many hours you want to work. Your earnings will always be higher than the amount deducted so essentially it would be what is a happy work/home life balance for you.
          look at things like will you have childcare to pay? If you do, you can claim 85% back via uc for costs paid & used during ap dates - however with your younger child what would be feesable childcare costs if any to make it worthwhile for you


            Ok so if I work 20 hours at £10 per hour that would be £200 per week before tax and £160 after tax. So in a 4 week month I would earn £640 and a 5 week month it would be £800 so should be over the benefit cap thing.

            Do you know how it works with the tax bit, as in if I don’t earn enough in the year to pay tax do I just declare all my wages or do I keep the tax back just in case? I just don’t want to end up owning a big bill to either the tax man or universal credit.

            when I went to the interview yesterday they said they pay for fuel so shouldn’t come out of my wages.

            lastly with childcare. I am trying to find child care for 2 day times and then the rest I work would be evening because the children’s dad can have them to save so much on childcare payment.


              On 20hours a week earnings of £200 it would be around £4.49 tax/ni a week or £19.46 monthly

              In terms of self employment/taxes etc you would probably be best speaking to HMRC to ensure you know the ins & outs of that side of things


                Oh well I really worked that calculation out wrong lol. Thank you for all your help. I will contact HMRC tomorrow