This means you might be able to get more Universal Credit.
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Tell your work coach if you can’t work because of coronavirus - they can remove or reduce your minimum income floor. You can find out more about growing a business on GOV.UK If you can’t work because of coronavirus If you don’t do this, the DWP can end your start-up period early and the minimum income floor will be used to work out your payments. You’ve already had a start-up period - for any business you’ve had in the last 5 yearsĭuring your start-up period, you’ll need to show your work coach how you’re growing your business. You’ve already had the minimum income floor used to work out your earnings for the same self-employed work You won’t have a start-up period if either: If you don’t know whether the DWP have said you’re in gainful self-employment, check with your work coach. After a year, the minimum income floor might be used to work out your payments. This is known as a start-up period and lasts for a year. When the DWP say you're in gainful self employment, they might not use the minimum income floor straight away - they might use your actual earnings instead. Check you’re in the right work-related activity group. You might be in the all work-related requirements group when you shouldn’t be - for example, if you’re a carer or responsible for children. If you can’t find your claimant commitment, ask your work coach which work-related activity group you’re in. If you don’t have an online account, you can find your work-related activity group on your paper ‘claimant commitment’. You can find out which work-related activity group you’re in by looking in your Universal Credit online account. If you’re not in gainful self-employment and the all work-related requirements group, the DWP won’t use the minimum income floor - they’ll use how much you actually earned to work out your payments. They might agree to work out your payments using your monthly earnings instead. If coronavirus is affecting your business - tell your work coach. The DWP will give you a month’s notice if the minimum income floor will be used to work out your payments. The DWP have started checking if people are still in gainful-self employment - they might decide to start using the minimum income floor again. The DWP didn’t use the minimum income floor to work out Universal Credit payments from 30 March 2020 to 31 July 2021. If you were self-employed and got Universal Credit before 1 August 2021 You’ll also need to be in the ‘all work-related requirements group’ - this means you’re expected to work or look for work. This means being self-employed is your main job, you work regularly and expect to make a profit.
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The minimum income floor might apply to you if you're in gainful self-employment. Check if the minimum income floor will apply to you If you haven’t claimed Universal Credit yet, check if you can get Universal Credit. Check if the minimum income floor applies to you before you work out your payments. The DWP might not use the minimum income floor to work out your payments - for example, if you're sick or haven't claimed Universal Credit before. This means the DWP will take more off your Universal Credit payment than if they’d used your actual earnings.
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If you earn more than your minimum income floor, your Universal Credit payment will be based on your actual earnings.įor example, if your minimum income floor is £1,200 and you earn £800 - the DWP might work out your Universal Credit payment as if you had earned £1,200. If you earn less than your minimum income floor, the DWP will usually work out your Universal Credit payment as if you’d earned your minimum income floor. The minimum income floor is different from what you actually earn. The amount the DWP expect you to earn each month is called your ‘minimum income floor.' Your Universal Credit payments might change - it depends on how much you earn.Įach month, the Department for Work and Pensions (DWP) check if you’ve earned more or less than they expect you to earn.