Hi. I'm not sure about England. But here in Scotland working tax credit has changed over to universal credit. Think the rules are the same though, just called something else. But you can ask to be put on a business course at business gateway and they will pay your credit plus an extra. Not sure how much though. But It'll give you some time and extra cash in the meantime and keep them off your back about looking for a job. Especially if you're wanting to go self-employed. Don't be afraid to have a big list of questions to ask. To get a payment you have to be either looking for work, or be doing some sort of self-employed stuff like advertising, promotions. Getting business cards done and a business plan on that business gateway course will help you. It might just be the thing you need to get some breathing space and get the information you need. Ask your work coach if you have one.
Hope this helps
Nicky