I am looking into the position of our union members who have claimed UC and operate via PSCs (personal service companies):
SE guidance H4374 states as follows:
H4374 Where H4360 applies to a company which is carrying on a trade
1. the income of the company or the person’s share of that income has to be treated as the claimants S/E income and calculated in the same way as S/E earnings and
2. the person has to be treated as in gainful self-employment (see H4020 et seq) if their activities in the course of the trade are their main employment.
1: the S/E earnings in 1. are in addition to any earnings the claimant may have received in their position as a director or employee of the company
2 . 1 UC Regs, reg 77(3)(b) & (c); 2 reg 77(4)
The relevant part of the UC Regs i.e. Reg 77 (3) (c) states:
(c) where the person’s activities in the course of the trade are their main employment, the person is to be treated as if they were in gainful self-employment and, accordingly, regulation 62 (minimum income floor) applies in relation to any assessment period where the amount of the person’s earned income is below the minimum income floor specified in paragraph (2) of that regulation.
The wording seems to imply that if the company is trading and that is the claimant’s main employment then GSE is assumed i.e. all limbs of the GSE are met.
The MIF is of course under temporary suspension during COVID so I’m looking at their potential position post 13th November when as things stand that discretionary suspension is lifted.
Have anyone come across this issue before?