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Transitional protection AET self employed and carer element

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2 months 1 week ago #299506 by Eggcustard
Hi
I am entitled to contributions based ESA support group & PIP enhanced on both elements. My partner is self employed.
We migrated to UC from TC. We have 16K+ savings. We have carer element for UC and child element daughter is 17

I have had a message saying the claim will end because during month 1 partner was above AET and months 4,5,6 (3in a row) he was below AET.

I have been told my income doesn’t count towards AET because it’s other income. They are using couples AET to say it will stop.

Is this correct? I don’t understand how my partner is expected to care for me for 35+ hours a week and also earn above couples AET on his own which is basically a 70 hour week every week

In the 1st month he was above it because he was paid for a big well paid job and no tax was taken by that company which usually doesn’t happen. We were well below on months 4,5,6 because of van MOT & repairs (£600) van insurance (600) breakdown cover (150) new mobile (200) going out in consecutive months. Also winter so can’t render, people don’t want work done over Christmas, too cold sometimes sites close for 2 weeks. He has no control over when he is paid, if they take tax, big expenses etc.

I also thought as a carer he had no work commitments so it doesn’t make sense.

Also is there a cut of time during the day you have to enter self employed income? When he initially entered 1st months income at 6pm he was below AET but another payment appeared at 9pm. I thought we should include it in that month so we changed earnings which took us over AET. Is this right or should they have told us to put it into the following month?

Thanks

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2 months 1 week ago #299510 by David
Hi Eggcustard

Firstly your £16k savings will be disregarded for 12 months only.
As a carer your partner will be in the No Work Related Requirements conditionality group which gives him exemption from the Minimum Income Floor but not from the earnings rules regarding AET.
UC self employment accounts are administered completely differently to HMRC accounts as they are done on a cash in, cash out basis. If you had planned the business payments , you could have spread it out so as to avoid being caught in the trap regarding the AET as you have been.
Regarding the time of day for making accounting entries, UC will look at your monthly Assessment Period which will end at midnight.
Here are the rules regarding the AET and earnings-

Cessation of employment or sustained drop in earnings

56(2) This paragraph applies to an assessment period other than an assessment period in relation to an award of universal credit mentioned in regulation 60A(1) (waiver of upper age limit for claimants migrated from tax credits) if the following condition is met–

(a)in the case of a single claimant–

(i)it is the assessment period after the third consecutive assessment period in which the claimantʼs earned income is less than the amount specified in regulation 99(6)(a) of the Universal Credit Regulations (“the single administrative threshold”), and

(ii)in the first assessment period of the award, the claimantʼs earned income was equal to or more than that threshold; or

(b)in the case of joint claimants–

(i)it is the assessment period after the third consecutive assessment period in which their combined earned income is less than the amount specified in regulation 99(6)(b) of the Universal Credit Regulations (“the couple administrative threshold”), and

(ii)in the first assessment period of the award, their combined earned income was equal to or more than that threshold.


Hope this helps.
David

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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2 months 5 days ago #299599 by Eggcustard
Thanks for the reply. I can’t see what the regs are but they definitely aren’t fair to carers.
Should it be the single AET or couples AET that is being used?
We could have paid monthly for insurance if we had known but part of the problem is no one told us anything about AET

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2 months 5 days ago #299601 by Eggcustard
It looks from that like couples AET. I don’t see how he can be expected to earn enough for both of us and care for me for 35hrs+ a week. This definitely isn’t fair.
I can see it’s what regs say but will be doing an MR if needed so it might be changed for other people with no savings who are losing hundreds per month for the same reason

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2 months 5 days ago #299602 by Eggcustard
Is there really no exemption for carers? Thanks

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2 months 5 days ago #299604 by David
Hi Eggcustard

You are a couple so it will be the couple AET.
There is no exemption from this 3 months earnings rule and Transitional Protection for carers.
You are unfortunate and it is something that self employed claimants should be aware of as their income, as you say fluctuates more than employed personnel.

David

Nothing on this board constitutes legal advice - always consult a professional about specific problems
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