employment work coach employment in ucfs
TRANSCRIPT
UCFS16a - Self Employment Work Coach
Advanced Self-Employment in
UCFS
Facilitator Led Brief V14.0
Advanced Self-Employment November 2017 V14.0
Page 2 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Contents
Contents ......................................................................................................... 2
Important Information: ................................................................................... 3
Module Aim and Objectives .......................................................................... 4
Gateway Interview ........................................................................................ 9
Business Plan ............................................................................................. 17
Claimant no longer self-employed .............................................................. 23
Tailored Commitment in the Start-up period ............................................... 25
SWOT and PESTLE Analysis ..................................................................... 35
Provision ..................................................................................................... 41
Module Summary ........................................................................................ 49
Advanced Self-Employment November 2017 V14.0
Page 3 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
To help facilitators prepare to deliver this module a
number of videos have been produced. These videos are
intended to show an example of how the module can be
presented. Throughout the module you will find reference
to these videos (LDO Prep 1 – 10) located in the Public
Info folders:
Public Info > Learning & Development > UC Full Service >
Video > UCFS16 Self Employment
NOTE:
The videos are for preparation purposes only and should
not be shown to learners.
Important Information:
Job Role Learning Required Duration
Self Employment Work Coach All 6 hours
Work Services Manager All 6 hours
Des
ign
ers
No
te
Advanced Self-Employment November 2017 V14.0
Page 4 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Ac
tiv
ity
Show Slide 01 – Self Employment Work Coach -
Advanced Self-Employment in UCFS
Before delivery of this module you should familiarise
yourself with the contents of the Facilitators Preparation
Pack.
Module Aim and Objectives
Show Slide 02 – Aim and Objectives. Summarise and
check the learners’ understanding before proceeding to
the activity associated with Slide 03.
Ask learners to consider the following questions and
feedback to the group. Allow 10 minutes for this activity.
How do you determine if a claimant is gainfully self-
employed?
What is the start-up period?
When is the start-up period applicable?
When can the start-up period be stopped?
What is the Minimum Income Floor (MIF)?
Who is subject to the MIF?
What determines an individual claimants MIF amount?
When is the MIF applied?
Po
werP
oin
tP
ow
erP
oin
tT
ip
Advanced Self-Employment November 2017 V14.0
Page 5 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Show Slide 03 – Key Terms
The start-up period begins on the first day of the
assessment period that the claimant declares themselves
to be self-employed with Universal Credit, if the claimant
is entitled to one.
The MIF will change at least once per year, when national
minimum wage (NMW) or national living wage (NLW)
increases.
As a result of the NMW changing on 1 April, existing MIFs will
need recalculating. The ‘Update the Minimum income floor’ to-
do will be automatically created.
The MIF may also change for a variety of other reasons for
example, a change to the claimant’s age or changes to the
ages of their children.
Show Slide 04 – Changes to the MIF.
The slide is animated and contains three examples of
instances where the MIF can change. Each example has 2
clicks, one for the scenario and one for the answer.
Example 1 is a change of age leading the claimant from
NMW to NLW.
Po
werP
oin
tN
ote
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 6 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Example 2 is a change in circumstances affecting the
number of hours that the claimant is available for work.
Example 3 is a yearly uprating of the NMW.
Run through the examples and check the learners’
understanding.
The Work Coach may anticipate the following:
NMW/NLW wage uprating
Claimant’s change in age will move them to a new
NMW/NLW wage level
Claimant’s youngest child turns 12 and they are no
longer entitled to reduced availability.
This list is not exhaustive.
At the gateway meeting you should anticipate any changes
and set a to-do to review the MIF when the change is due.
Whenever the MIF is changed the claimant must be asked
to attend an appointment to inform them of the changes to
the MIF. It is especially important that those claimants who
are subject to the MIF are informed about any changes.
Show Slide 05 – Determining Self-Employment status
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 7 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Only claimants in the intensive, light touch and working
enough Labour Market regimes are eligible for a start-up
period. Before a start-up period can take place, it must first
be determined that the claimant is self-employed and that
this self-employment is gainful self-employment.
To do this, you should consider:
what is the Labour Market regime?
is the claimant employed or self-employed?
are they gainfully self-employed?
are they in the start-up period or subject to the MIF?
Discussion
Discuss with the learners what the responsibility of the
Decision Maker is.
Emphasise that the Self Employment Work Coach is the
Decision Maker and that they are solely responsible for
making the GSE decision.
always refer to the Advice for Decision Making (ADM)
instructions first. If you are still unsure you should
discuss with colleagues/manager
Dis
cu
ssio
n
Advanced Self-Employment November 2017 V14.0
Page 8 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
as a Decision Maker it is your responsibility to make
decisions based on your interpretation of the ADM. A
different decision maker may make a different decision
based on their interpretations
as long as you have gathered the evidence from the
claimant and considered it in conjunction with the ADM
your decision will be correct
you should use the ALP free text boxes to document
your decision
you should always be able to explain your decision and
what evidence/instructions you have used
Show Slide 06 – Is the Claimant Self-Employed?
If the claimant answers ‘yes’ to most of the questions, it
is probable that they are self-employed.
Show Slide 07 – Is the Claimant Gainfully Self-
Employed?
If the claimant answers ‘yes’ to most of the questions, it
is likely that they are GSE.
Po
werP
oin
tP
ow
erP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 9 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
When claimants answer these questions they will need to
provide evidence to support their answers. For example, if
they say they have a Unique Tax Reference (UTR) number
then they can show paperwork from the HMRC detailing the
UTR.
Refer the learners to Advice for Decision-Makers (self-
employed earnings): intranet > A-Z > A > Advice for
Decision Making > Universal Credit (UC) Chapters > H4:
Earner Income – self employed earnings
ADM self-employed earnings
Refer the learners to Social Intranet > Organisation >
Universal Credit > Universal Learning > Self-
employment >Self-employment business tools
Self-employment Business Tools
During the Initial Evidence Interview if a claimant says
they are self employed a 50 minutes Gateway Interview
slot will be booked.
Gateway Interview
The Gateway Interview is used by the Self Employment
Work Coach to:
determine Self-Employment status and
Re
fere
nc
eR
efe
ren
ce
Advanced Self-Employment November 2017 V14.0
Page 10 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
if appropriate, whether the claimant is GSE and
if a start-up period or MIF is applicable
Show Slide 08 – Gateway Interview
Emphasise to the learners that it is a Self Employment
Work Coach responsibility to ensure that all the points
are covered in the Gateway Interview.
E-mail a copy of the Self-Employment Guide UCFS5 to
the learners.
Page 3 of the Guide states that self-employed earnings
should be reported by telephone. This will now change
following FUN release 75 which introduces the facility to
report online.
It is crucial to discuss the importance of the UCFS5 to the
claimants. The UCFS5 can be uploaded to the claimant’s
journal.
When is the best time to issue the UCFS5?
It should be issued when the Gateway Interview is
booked, either by the case manager or Work Coach. The
UCFS5 explains what the claimant should bring to the
Gateway Interview.
Han
do
ut
Qu
esti
on
Po
werP
oin
tN
ote
Advanced Self-Employment November 2017 V14.0
Page 11 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
The claimant should read the UCFS5 prior to the
Gateway Interview
Why is the UCFS5 important?
The UCFS5 is important because it gives the claimant all
of the information regarding their responsibilities
relating to their self-employment while claiming
Universal Credit. It also tells them what information they
can provide to prove their self-employment so they are
prepared for the Gateway Interview.
E-mail a copy of the ‘Verify Self-Employment’ ALP to the
learners.
Slides 09 – 17 cover various parts of the ‘Verify Self-
Employment’ ALP. Ask the learners to follow the ALP
as you go through the learning.
For preparation purposes, a video has been produced
covering the completion of the ALP. The Video is called
‘LDO Prep 10’. Please do not play for learners.
Video ‘LDO Prep 1’ is available for preparation purposes
for this section. Please do not play for learners.
Note: refer to the ‘Important Information’ section of this
module for instructions on where to access this.
Han
do
ut
Tip
Qu
esti
on
Advanced Self-Employment November 2017 V14.0
Page 12 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Show Slide 09 – Legal Business Structures (1 of 2)
Animated slide – Click 3 times to reveal all of the
information
Most of the claimants you encounter will be either sole
traders or sub-contractors. A smaller number will be
company directors. They’re usually all treated the same for
DWP purposes however there are always exceptions
For example some sub-contractors are considered
employees rather than self-employed. There are company
directors who have no meaningful influence over the day to
day running of the business so would not be considered self-
employed for Universal Credit purposes. Further details will
be discussed later in the brief.
Sole Traders:
are most small business owners
are paid via ‘drawings’ from the business
make their annual tax return by self-assessment
have personal liability for business debts
Sub-contractors
are contracted to carry out a particular job
Po
werP
oin
tT
ip
Advanced Self-Employment November 2017 V14.0
Page 13 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
most commonly found in the construction industry
Company Directors
the company is the legal entity
paid via salaries, dividends or directors’ loans
HMRC consider directors to be employees rather than
self-employed
DWP consider directors to be self-employed if they have
“meaningful influence” over the day to day running of the
business
more administrative commitments (for example, Annual
General Meeting (AGM), Company Secretary, Pay as
you Earn (PAYE) tax returns, annual audit, registration
with Companies House etc.)
There is no legal definition of ‘meaningful influence’. It
is the responsibility of the Work Coach as Decision
Maker to make that subjective decision based on all of
the evidence and the ADM.
Show Slide 10 – Legal Business Structures (2 of 2)
Animated slide – 2 clicks to reveal all of the information
Po
werP
oin
tT
ipN
ote
Advanced Self-Employment November 2017 V14.0
Page 14 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Company Directors often consider themselves to be
employees rather than self-employed because they usually
receive a salary through PAYE from their business and
HMRC often consider them as employees.
However, if they have meaningful influence over the day to
day running of the business then DWP usually consider
them to be self-employed for the purposes of Universal
Credit and treat them in exactly the same way as sole
traders.
DWP has legislated so that claimants cannot circumvent the
MIF simply by structuring their business as a company,
and/or becoming a paid director of that company, either
solely or as a partner.
Normal rules apply if the claimant exercises “meaningful
influence” over the day to day running of the business.
Regardless of their title, you need to look at the work the
claimant does, and determine if they are GSE or not.
Where they are GSE, you also need to determine their MIF
and any start-up period in the usual way.
The salary element of their profit should be reported
automatically via PAYE/RTI. Additional profits after salary
should be self-reported on-line via the claimant journal or
exceptionally, by contacting the Service Centre.
Advanced Self-Employment November 2017 V14.0
Page 15 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
ADM notes H4360-H4364 state:
“a claimant who is in a position similar to a sole owner or
partner… has to be treated as the sole owner or
partner”.
“these claimants are treated in the same way as
claimants who run a business… on their own account”.
“for the purposes of Universal Credit, a person trading
through a company is treated in the same way as one
who has not set up a company to conduct their
business”.
“whether a person who has shares in a company is
similar to a sole owner or partner in the business of that
company is a question of fact in each case”.
“when a business is jointly owned… the number of
shareholders in the company should be small and the
person should have some meaningful influence over…
day to day running”.
For more information on company directors, refer the
learners to Social Intranet > Organisation > Universal
Credit > Universal Learning > Self-employment >
Companies and Directors – Gainful Self-Employment.
Companies and Directors
Re
fere
nc
e
Advanced Self-Employment November 2017 V14.0
Page 16 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Show Slide 11 – Practical Information
Self-employed claimants should ensure that they register for
the following where appropriate:
HMRC - all self-employed claimants should register with
HMRC. This must be done by 5th October following the
end of the tax year when the tax return is due.
Unique Tax Reference Number (UTR) - this is a 10 digit
number provided by HMRC when the claimant registers
as self-employed
VAT - not all claimants need to register for VAT. Only
those with a VAT taxable turnover of £85,000 need to
register for VAT
Tax and National Insurance
National Insurance Contributions (NICs) are
set at a different rate (class) for self-employed
people depending on profit, when compared
to employed people
Income Tax is paid by sole traders
Corporation Tax is paid by Limited
Companies
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 17 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
directors of Limited Companies may also pay
Class 1 National insurance Contributions if
they receive PAYE from their company.
Business Plan
Video ‘LDO Prep 2’ is available for preparation
purposes. Please do not play for learners.
Show Slide 12 – Business Plan (animated slide – 7
clicks to reveal the bullet points below.
At a minimum the business plan should contain:
executive summary
business overview
strategy and risk
sales & Marketing
operations & Policies
financial
appendices
Show Slide 13 – Business Plan (continued).
Po
werP
oin
tP
ow
erP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 18 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
A business plan provides focus and direction to the business
and evidence of the business for stakeholders.
A Harvard Business School study asked graduates if they
had set clear, written goals for their future and made plans
to accomplish them – only 3% said ‘yes’.
The students were interviewed again 10 years later. The 3%
that had made written goals were earning on average as
much as the other 97% combined.
Show Slide 14 – Marketing Documents
A claimant may bring in any or all of the documents listed on
Slide 14 to prove that they are taking appropriate steps to
promote their business:
Work Coaches can use the Commitment in order to get self-
employed claimants to complete a business plan and
provide copies for their scrutiny.
As a Self Employment Work Coach you are expected to look
at general business documents provided by the claimant
and analyse them in depth. You are not expected to be able
to write them but you are expected to be able to extract
relevant information from them.
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 19 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
General types of documents that you might expect to see
from a trading business owner include:
business contact details
HMRC correspondence (for example, tax returns,
confirmation of self-employment registration/UTR)
business plan
insurance certificates for business and/or business
assets
licences (for example, Data Protection, DBS, Food
Hygiene)
certificates of achievement (for example. correct edition
of Electrical Installation certificate, hair & beauty
qualification, Construction Skills card etc.)
companies House registration (if applicable)
partnership agreement (if applicable)
contract for services (subcontractors)
list of customers/suppliers
copies of quotes for work carried out/list of scheduled
jobs
Advanced Self-Employment November 2017 V14.0
Page 20 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Sub-contractors may provide evidence such as:
contract of employment
business accounts
record of expenses
Show Slide 15 – Business Finance Documents
Claimants may provide any of the following as evidence
relating to their business finances:
forecast/Actual Cash Flow statement (c/w Personal
Survival Budget)
accounts (including balance sheet and profit & loss
account)
transactions record/cash book
bank statements
invoices
receipts for business expenses
accountant details
business loan details
payslips (if paid through PAYE)
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 21 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Video ‘LDO Prep 3’ is available for preparation
purposes. Please do not play for learners.
Show Slide 16 – Business Contingencies
When you run a business there are a number of things that
substantially affect the ability of the business to earn money.
Businesses therefore need contingency plans for:
seasonal fluctuations
periods of illness
periods of low earnings
unexpected circumstances
Some claimants are reluctant to bring in a business plan.
Without this it will be difficult to see what contingency
arrangements the claimant has made for this business.
If someone runs an ice cream van they should have a plan
showing what their contingency is for seasonal fluctuations.
For example, they may vary what they sell during the winter
months such as hot drinks and food.
What sort of things could come under the heading of
unexpected circumstances?
Po
werP
oin
tQ
ue
sti
on
Advanced Self-Employment November 2017 V14.0
Page 22 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
This could include anything from bad weather to bad
press about your products (for which there is
insurance).
Video ‘LDO Prep 4’ is available for preparation
purposes. Please do not play for learners.
Show Slide 17– MIF Calculator
This is what the MIF calculator looks like and can be found
in the ‘ALP Links’ folder.
The age and number of hours, in the yellow boxes, are
variable fields and used to calculate the claimant’s MIF.
Where on the MIF Calculator would you find the figure
used for the MIF?
The MIF figure is in the NET Monthly income box at the
bottom right hand side of the calculator
Do not confuse the MIF amount in the ‘Net Monthly
Income’ field with the amount in the ‘Monthly gross
income’ field.
Po
werP
oin
tQ
ue
sti
on
Tip
Advanced Self-Employment November 2017 V14.0
Page 23 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Claimant no longer self-employed
If the claimant reports that they are no longer self-employed
they will need to provide evidence to prove this. What
evidence could be gathered?
Show Slide 18 – Evidence of ending self-employment
Evidence of continued job search activity that is checked
robustly by the Work Coach on a regular basis could also
indicate an end to self-employment.
If the claimant has provided evidence to prove that they are
self-employed, it is also their responsibility to provide
equivalent evidence when the business ends. The MIF will
stay in place until this has been provided.
If the claimant reports an end to self-employment over the
phone, then a Gateway interview will need to be arranged
with the Work Coach to review this evidence.
An ending self-employment decision should not be
made unless claimants have provided sufficient
evidence that their self-employed has officially ended.
Slide 19 onwards refers to the Gateway Interview
No
teT
ipP
ow
erP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 24 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Ac
tiv
ity
Show Slide 19 – Activity – Completing the ALP
Refer the participants to Handout 01 – Case study –
Maple
As the facilitator, use Handout 01FRN - Case Study –
Maple to answer questions from the learners. The
learners will be using the ALP to determine whether
Maple is GSE and if she’s subject to the MIF or in the
start-up period. The learners should use the ADM to
help them make a decision.
When the ADM is used ask the learners to make
references to the parts they use to help them come up
with a decision.
Once the activity is complete, go through the ALPS,
focusing in particular on what is written in the free text
boxes to ensure learners have provided sufficient detail.
Learners should discuss whether they have found
Maple to be GSE, in the MIF/start-up and why they have
come to the conclusion.
Maple is gainfully self-employed. She should be subject
to the MIF, as despite doing some employed work she’s
been registered as a self-employed bricklayer since
2014 and has been doing this sort of work ever since.
Po
werP
oin
tH
an
do
ut
Advanced Self-Employment November 2017 V14.0
Page 25 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Tailored Commitment in the Start-up period
More specific Commitments tailored to the business will be
needed for self-employed claimants in the start-up period.
What information could be included on the Commitment
for someone in the start-up period?
Video ‘LDO Prep 5’ is available for preparation
purposes. Please do not play for learners
Show Slide 20 –Commitment for the start-up period
Show Slide 21 – Quarterly Reviews
“Interviews need to be progressive/tailored and closely
monitored, with new requirements set to support progression
of earnings towards the MIF”.
This is a quote from the Universal Credit policy document.
These are the three main reasons to conduct quarterly
reviews in the start-up period.
Although the Gateway interview is important, quarterly
meetings are equally as important because they provide an
opportunity for the claimant to demonstrate how the
business is progressing towards the MIF.
Po
werP
oin
tQ
ue
sti
on
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 26 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
The meetings need to be progressive because they need to
help the claimant to move forward. They must also be
tailored because each business is different and one set of
rules doesn’t apply to everyone who is self-employed.
Activity needs to be closely monitored because the claimant
needs to demonstrate that they are engaging in self-
employment activity.
New requirements need to be set in order to keep the
business moving forward. Claimants should agree new
actions that will improve the business at each meeting, for
example, attending a marketing course or contacting new
suppliers to see if costs can be reduced.
Quarterly reviews are all about providing evidence of
progression of earnings towards the MIF.
Why do you think it is important for claimants to attend
quarterly interviews while in the start-up period?
It’s important because:
they help the claimant stay focused on growing their
business,
they can provide the claimant with details of
organisations that offer help and courses for self-
employed people,
Qu
esti
on
Advanced Self-Employment November 2017 V14.0
Page 27 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
claimants are given the opportunity to discuss their
business and agree what courses of action they can
take, and
they encourage claimants to work on their business, not
just in their business.
This list is not exhaustive.
Video ‘LDO Prep 6’ is available for preparation purposes.
Please do not play for learners.
Show Slide 22 – Progression of Earnings Towards the
MIF
The graph represents the cash flow figures displayed at the
top of the slide. The example is Karen who is working as a
florist. This is what her start-up looks like.
This is a fairly typical example where the actual monthly
profit is quite different to the predicted monthly profit.
The blue line demonstrates the business initially trading
successfully but dipping below expectations in month 6. This
is partly due to the increase in MIF.
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 28 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Although the claimant should be seen regularly throughout
the start-up period, the need for a review is particularly
important in the third quarter to ensure the business stays on
track and increases its earnings for the remainder of the
start-up period.
Why do you think the MIF has increased?
The MIF can increase due to change of age, uprating of
MIF or change in availability. In this case Karen’s
availability changed, her youngest child turned 13 so
she was no longer able to restrict her availability.
Show Slide 23 – Work Coach or Business Advisor
A short video entitled Coaching or Advising highlights
the differences between coaching the claimant and
advising them about their business.
You can access the video from the Public Info folders:
Public Info\Learning & Development\UC Full
Service\Video\UCFS16 Self Employment
As a Work Coach you have to be careful not to give business
advice.
Qu
esti
on
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 29 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Karen’s business earnings have dipped below expectations
in month 6 and her MIF has increased.
Earnings have not recovered by the time of her quarterly
review in month 8.
As a Work Coach, what would you suggest to the
claimant?
“what opportunities do you have to source additional
work?”
“I would like you to explore different marketing options to
help you raise your profile.”
“are there ways in which you can increase the amount of
money you’re making?”
“can we discuss the benefits of attending a 3-day
business course in the local area?”
As a Work Coach what should you avoid suggesting to
the claimant?
“I would suggest sub-contracting your services a couple
of days a week.”
“could you increase your prices?”
“please attend the business course taking place at the
local community centre next week.”
Qu
esti
on
Qu
esti
on
Advanced Self-Employment November 2017 V14.0
Page 30 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
What are the possible consequences of giving business
advice?
If a Work Coach gives business advice and the
claimants business fails then it can cause a number of
issues including:
reputational damage to DWP
legal action being taken against the Work Coach or
DWP
Video ‘LDO Prep 7’ is available for preparation
purposes. Please do not play for learners.
Show Slide 24 – Key Business Growth Areas
Most of the business topics that you discuss with the
claimant will fall into one of the following areas:
business planning
goals and objectives, values, strategies,
operations and personnel, risk and
contingencies, products/services, systems
and policies etc
All of the following areas should also be included in a
Business Plan:
Qu
esti
on
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 31 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
market research
methods, identifying a target market,
competitor knowledge, analysis and
differentiation, SWOT/PESTLE (Strengths,
weaknesses, opportunities, threats/political,
economic, social, technological, legislative,
environmental) analysis etc
sales and marketing
sales activity, methods, advertising and
promotions, budgets, product
samples/examples etc
business finance
Personal Survival Budget, accounts, cash
flow, record-keeping, pricing strategies,
progression towards the MIF etc
All of these topics will be discussed in more depth later in
the module.
At all stages Work Coaches should consider whether any
local or national support would be appropriate. Information
should be available on the District Provision Tool.
These are the areas that should be discussed at the
quarterly reviews during the start-up period.
Advanced Self-Employment November 2017 V14.0
Page 32 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Show Slide 25 – Business Planning - Market Research
There is a need to do business planning if you are self
employed.
Why?
is there a market?
is there a place in the market for me?
Market research is an important part of business planning.
It’s important to prove that the business can work. It enables
you to find out about two things - your customers and your
competitors.
What?
customers
customer profile / target market
demographics/Psychographics
Who are your customers likely to be?
What is your target market?
Where do they live?
How old are they, etc.?
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 33 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
You should use statistics to prove that there are enough of
this customer group to make your business a viable option.
Demographics is statistical information is about where
potential customers live, their age, job, etc.
Psychographics concerns buying habits and the likes and
dislikes of your customers
competitors
direct and indirect
Unique Selling Point/Unique Perceived
Benefit (USP/UPB)
You need to analyse your competitors to establish who is
out there and how they differ to you. Knowledge about your
competitors is essential.
You need to consider the difference between direct and
indirect competitors. For example, if you’re a designer of
wedding stationery, your direct competition is other wedding
stationery designers. Your indirect competition is wedding
caterers, photographers, venues, dressmakers because
they’re all taking money from the same customers.
It’s essential to know about your competitors because you
can then make yourself unique.
Advanced Self-Employment November 2017 V14.0
Page 34 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
It’s difficult to have a USP as lots of business offer similar
service. Having a UPB makes a customer perceive you as
unique.
For example, Uber are often perceived as unique as they
offer a complete service via an app. Since Uber has such a
large share of the market, their customers see the app as
unique to Uber. However, there are a number of other
businesses that offer taxi service and payment via an app.
How?
primary and secondary methods
competitor Analysis
SWOT/PESTLE Analysis
There are primary and secondary methods of market
research. What do you think are primary methods of
market research?
Primary methods are anything you do that gives you
direct contact with the customer, for example
developing questionnaires and undertaking
questionnaires. This can also include asking around
friends and family, attaching surveymonkey.com to your
business Facebook page and mystery shopping.
Qu
esti
on
Advanced Self-Employment November 2017 V14.0
Page 35 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Secondary methods include research that someone else
has done, for example looking at on-line survey results,
national statistics etc.
Refer the participants to Handout 02 – Competitor
Analysis Template
Talk the learners through the template. This helps
analyse unique selling points and areas you may need
to improve. It also helps to maintain awareness of what
your competitors
SWOT and PESTLE Analysis
SWOT – Strengths, Weaknesses, Opportunities, Threats
PESTLE – Political, Economic, Social, Technological,
Legislative, Environmental
It may be useful to write these acronyms on a piece of
flip paper.
A SWOT analysis is all about the strengths and weaknesses
of your business. For example, lots of connections in the
industry, access to cheap stock and lots of knowledge about
the product are strengths.
Weaknesses could be lack of transport, no contacts or other
commitments that affect your ability to run the business.
Han
do
ut
Des
ign
ers
No
teT
ip
Advanced Self-Employment November 2017 V14.0
Page 36 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Strengths and weaknesses are all about you and your
business idea.
Opportunities and threats are all about your market. What
opportunities are out there for you to take advantage of?
What is threatening your business?
Strengths and weaknesses are internal factors.
Opportunities and threats are external factors.
Opportunities and Threats can be broken down into
categories using the PESTLE analysis. The PESTLE
categories feed in to your SWOT analysis when looking at
opportunities and threats:
Refer the participants to Handout 03 – SWOT and
PESTLE Analysis template
Once the analysis has been completed positives are
associated with opportunity and negatives are associated
with threat. For example, Brexit may be positive for a builder
who is scared of losing business to builders from Europe.
However it could be considered a threat to a European
builder in the UK who may become uncertain about their
future and whether they’re allowed to stay.
Han
do
ut
Advanced Self-Employment November 2017 V14.0
Page 37 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Ac
tiv
ity
Ask the learners to complete the SWOT and PESTLE
analysis for a business they think they know quite well.
They can either work alone or in pairs.
They should complete the strengths and weaknesses
parts of the SWOT first, then the PESTLE analysis. Once
completed they should use the answers in the PESTLE
part to complete the Opportunities and Threats.
Ask the learners to feedback what they’ve done and any
conclusions to the group.
Allow 15 minutes to complete this activity.
All of the market research and SWOT/PESTLE analysis
enables you to then make informed business decisions
about the direction of your business.
Show Slide 26 – Customer Market Research
This is an example of the sort of customer market research
you can do. This sort of information would be useful if you
were going into a business as a child-minder in Sutton as it
tells you the number of people in Sutton with children in
relation to the national average.
Video ‘LDO Prep 8’ is available for preparation purposes.
Please do not play for learners.
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 38 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Show Slide 27 – Sales
This is about ways that you could improve sales. The
acknowledged ways of increasing sales are:
increasing customer numbers
increasing frequency of transactions
increasing average transaction value (ATV)
How the claimant does this is up to them. We would say to
claimants that they need to do this but how would they do it?
Go and look at competitors, etc. This is the sort of
conversation you should be having with the claimant.
Increasing ATV could be achieved by getting cheaper stock
or raising prices, for example, fast food businesses will ask
you if you would like to ‘go large’ on your order. This is an
easy way of increasing the ATV. The business has not
gained another customer but has increased the amount
received from customer, thus proving more cost effective.
Short term strategies to increase sales include:
setting Key Performance Indicators (KPI)
acting on feedback from customers
comparing earnings to MIF
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 39 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
In the short term claimants can set themselves some
SMART KPIs such as:
“I aim to gather feedback on customer service and ensure it
is acted upon within a reasonable time period. “
Feedback for the business could be gathered via a
suggestion box or on-line questionnaires. For example
shops often provide a questionnaire at the till. To encourage
completion, there is often a competition associated with it to
win rewards.
While undertaking any of these strategies you should
continue comparing your earnings to the MIF. This will help
to see if the actions taken are helping to increase profits.
As well as making short term strategies self-employed
people should always be thinking about the bigger picture
and have long-term strategies in mind. These include:
growing the business
continuing market research/analysis
increasing sales and marketing activity
developing financial awareness
The claimant must consider how the business will grow long-
term. SWOT/PESTLE analysis and business planning must
be continuous because once stopped, the data goes stale.
Advanced Self-Employment November 2017 V14.0
Page 40 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
The claimant must always be looking at ways to increase
sales and marketing activity to boost profit.
Developing financial awareness is very important because
business owners need to make financial decisions based on
the money going in and coming out of their business. This
enables the claimant to make informed decisions about their
business.
Show Slide 28 – Marketing
Trade shows and exhibitions are things that all business
owners should consider attending for networking purposes.
Free publicity uses interesting and quirky stories in
newspapers to generate interest in the business. This could
be about things like charity events organised by the
business, etc.
Pay per click utilises the internet to its full advantage, above
and beyond social media and website.
Referral schemes can include recommending a friend for
incentive, discount, etc. This is a good way of generating
interest in the business and increasing your customer base.
Do subcontractors need to carry out marketing?
Po
werP
oin
tQ
ue
sti
on
Advanced Self-Employment November 2017 V14.0
Page 41 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Sometimes: it depends on the business.
For example, when their contract is due to end, sub-
contractors should be marketing THEMSELVES at the
appropriate time, as they are the business. A sub-
contractor may not market in the traditional way. For
example, they may be more likely to get another job by
talking to their builder friend rather than advertising on
social media. This would be considered networking.
Provision
Video ‘LDO Prep 9’ is available for preparation
purposes. Please do not play for learners.
Show Slide 29 – Provision
Animated slide – click 4 times to reveal all of the
information
The District Provision Tool (DPT) can be accessed using the
filepath: Intranet Home Page > A-Z > D > District
Provision Tools > index to all DPT’s. Ask the learners to
save this to their Favourites toolbar.
The DPT contains information about:
advice, support and business mentoring
Po
werP
oin
tT
ipD
es
ign
ers
No
te
Advanced Self-Employment November 2017 V14.0
Page 42 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
business workshops
links to online resources
enterprise clubs & networking
business funding
start Up Loans Company factsheet
working areas/premises
adviser Toolkit
The DPT is only as good as the information that is
available on it. Please remember to get in touch with
your local representative to update the information
available on the DPT – local initiatives in particular will
not be picked up at national level so Work Coaches
must update the information as soon as you become
aware of new provision available in your area.
DWP is seeking feedback/suggestions regarding the
development of the DPT. Any feedback or suggestions
can be made by following the link within the tool.
Show Slide 30 – Business Finance – Personal Survival
Budget
Po
werP
oin
tN
ote
Tip
Advanced Self-Employment November 2017 V14.0
Page 43 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Refer the participants to Handout 04 – Cash Flow
Learners will just need copies of the Personal Survival
Budget and Cash Flow tabs.
The personal survival budget is about personal income and
expenditure. The figures shouldn’t be guessed at. It should
be completed honestly with bank statements and receipts.
You should also consider occasional costs that don’t happen
every month such as birthdays, MOT’s etc. This is used to
determine drawings and salary requirements from the
business.
Show Slide 31 – Business Finance – Cash Flow (1)
This is the business version of the personal survival budget.
It’s a prediction of monthly business income and expenditure
for the forthcoming year.
Self-employed people need to know how much money is
going to be brought into their business. The answer is based
on the market research done, the amount of footfall
expected, seasonal fluctuations in business, costs of
materials, number of hours available to work, etc. A record
of the income generated in the past month must be made.
Po
werP
oin
tH
an
do
ut
Advanced Self-Employment November 2017 V14.0
Page 44 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Which figure or figures would count towards monthly
declared income?
Which figure or figures would need to be declared by a
director of a limited company?
The NET Cash flow and the salary they are drawing from
the business count towards monthly income.
Answer is on slide 32 highlighted in red.
Show Slide 32 – Business Finance – Cash Flow (2)
Interactive slide – click twice to reveal all of the answers
The owner salary will not need to be reported by the
director as this will be received via the RTI feed.
Show Slide 33 – Business Finance
At quarterly review meetings you must be prepared to
compare and contrast the evidence documents provided; for
example:
do the claimant’s company accounts, bank statements,
cash books etc. correspond with their monthly
declarations to DWP?
Po
werP
oin
tQ
ue
sti
on
Tip
Po
werP
oin
tN
ote
Advanced Self-Employment November 2017 V14.0
Page 45 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
are company directors providing evidence of any income
additional to their Real Time Earnings, and does this
correspond with their monthly declarations?
can claimants explain any anomalies in the data?
Work Coaches and case managers should look out for
round figures and be willing to question claimants about
these.
Round figures would be acceptable for forecasts of earnings
but when reporting actual earnings, round numbers would
not be expected.
Show Slide 34 – Business Finance – Evidence (1 of 2)
Here is a very good example of what evidence could be
provided by a claimant, including:
certificate of registration for VAT
certificate of incorporation
professional indemnity insurance certificate
payslips
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 46 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Do you notice anything abnormal about the payslips
provided?
The claimant didn’t get paid in September.
If a claimant hasn’t received payment then the Work Coach
should be questioning the claimant about it.
Show Slide 35 – Business Finance – Evidence (2 of 2)
Here is an example of a receipt provided as evidence by a
claimant.
What does this evidence show?
It is very difficult to use this as evidence. This is not an
acceptable piece of evidence provided by the claimant.
As a Work Coach, you should inform the claimant that
this is an unacceptable form of evidence and re-book
the meeting for them to provide additional, acceptable
evidence.
Show Slide 36 – Illustrative Example (Part 1)
Po
werP
oin
tQ
ue
sti
on
Po
werP
oin
tQ
ue
sti
on
Advanced Self-Employment November 2017 V14.0
Page 47 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Ac
tiv
ity
Ac
tiv
ity
Ask Learners to consider Bianca’s Circumstance based
on the information she has provided.
What Questions could Bianca be asked in order to
identify any issues and opportunities?
This activity should take 10 minutes.
Possible questions include:
why do you think you’re not earning much money
what do you think you can do to increase turnover
what marketing activity have you carried out?
who is your competition and what are they doing?
Show Slide 37 – Illustrative Example (part 2)
Ask learners to consider the additional information
provided by Bianca. What questions could they ask her
in order to help her to identify how she could increase
her earnings?
This activity should take 10 Minutes
Bianca could be asked:
is selling English breakfast in Italian restaurant a good
idea?
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 48 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
is there a customer demand for breakfast?
would she make more money by just opening in the
evening?
where in the city are you based? This helps to see if it’s
a busy area with a lot of passing foot traffic or if it’s
somewhere more out of the way that people may need
to drive to.
what are the reasons why business is slow?
have you considered doing a cost benefit analysis of
employing a waitress?
can someone else cover the waitressing role while
covering the take away?
why does the advert not mention all of the facets of the
business? It didn’t advertise breakfast or restaurant.
why offer 15% discount? What discounts are
competitors offering?
what effect has the advertisement had on the business?
are you making more or less profit?
We have now completed UCFS16A Advanced Self
Employment in UCFS. The next module will be (facilitator to
insert if appropriate).
Advanced Self-Employment November 2017 V14.0
Page 49 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
Video ‘LDO Prep 10’ is available for prep purposes.
Please do not play for learners.
Module Summary
Show Slide 38 – Module Summary
If you need further help you should follow these steps:
check the ADM or Universal Learning.
consult your Self Employment Work Coach colleagues
refer to a trained Work Coach Team Leader
Stress the importance of consulting the ADM as they are
now required to make decisions in this role.
Useful resources include:
advice for Decision Making: Intranet > A-Z > A >
Advice for Decision Making > Universal Credit (UC)
Chapters > H4: Earned Income – self employed
earnings
self-employment Desk Aid & business tools: Social
intranet > Organisation > Universal Credit >
Universal Learning > Self-employment > Self-
employment Business Tools
Po
werP
oin
t
Advanced Self-Employment November 2017 V14.0
Page 50 of 50
UCFS16a - Self Employment Work Coach Advanced Self-Employment in UCFS
for general advice on business and self-employment:
https://www.gov.uk/browse/business
for local business events:
https://www.eventbrite.co.uk/
for information about domain name ownership and
current status: https://www.whois.com/
freelance services for entrepreneurs:
https://www.fiverr.com/ or
https://www.peopleperhour.com/
for information about limited company ownership:
https://www.gov.uk/government/organisations/comp
anies-house
Show Slide 39 – Module Summary
Po
werP
oin
t