TIP: If you are working and you have (or your partner has) health issues then you (or they) may be able to have a Work Capability Assessment. If you (or they) are found to have a Limited Capability for Work this could increase how much UC you get. If you’re not sure speak to a Benefits Adviser.
If you’re self-employed, you’ll have to report your earnings each month before you can get your payment.
You will have a ‘to do’ task to report your self employed income and expenses on the last day of each Assessment Period.
You will need to report all the income your business has received during the Assessment Period – these are called ‘receipts’ less certain costs that you’ve paid – these are called ‘personal allowances and permitted expenses’. This will give you your final earnings amount.
Report your earnings through your online journal. Even if you haven’t made any money, or you’ve made a loss still report this. You can carry over a loss to the following month. A loss will be deducted from your next month’s earnings.
If you need help or support reporting your earnings, call the Universal Credit helpline.
For more information see the guide on the gov.uk website – click here.
Example
Stewart claims Universal Credit on the 16th July. His Assessment Periods start on the 16th day of each month, and end on 15th day of the following month. He must report his earnings and expenses by 15th of each month (he will receive a ‘to-do’ in his journal around 7 days before). If he fails to complete the ‘to-do’ he will not receive any Universal Credit until he does.
Minimum Income Floor
Some self-employment claimants are affected by the Minimum Income Floor.
The Minimum Income Floor doesn’t apply to everyone. If it doesn’t apply to you, your payments will be based on what you actually earn through self-employment.
If it does apply to you then, when the DWP work out your Universal Credit payment each month, they’ll use either your real earnings or your ‘Minimum Income Floor’ (how much they expect you to earn), whichever is higher.