Going Self Employed As A Writer

I am contemplating going self employed as a writer. However, I need to know where I stand in regard to claiming Working Tax Credits as a sole trader. I have heard some horror stories about this new Universal Credit tha t is being introduced will phase out Working Tax Credit, consequently making it very hard for a person to start up their own business.

Is this true?

Also, when you tell the jobcentre that you want to start your own business, do you REALLY have to apply for the NEA and the loan, or is that just optional?