Universal Credit and self employment - How much do they deduct?

sofaman

I'm looking to go self employed whilst on UC. I understand that they'll either classify you as gainfully self employed, or not gainfully self employed (which you still have to report your earnings).

I take it that the amount of UC they deduct is different for both categories? Also, I'm unable to find out the amount that they deduct when making money as self employed.

calcotti

For both they take your earnings as the difference between your business income and business expenditure.

however if you are treated as gainfully self employed then, after 12 months, you are subject to the Minimum Income Floor which means that you are treated as earning at least a certain amount even if you actually earn less.

https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/universal-credit-and-self-employment-quick-guide

sofaman

So do they take 63p from every £1? Can't seem to find out any info on the actual money I can earn before they deduct, etc.

calcotti

sofaman said:

So do they take 63p from every £1? Can't seem to find out any info on the actual money I can earn before they deduct, etc.

Google “how much is Universal Credit” brings up
https://www.gov.uk/universal-credit/what-youll-get
or
https://www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/check-how-much-universal-credit-youll-get/

poppy12345

sofaman said:

So do they take 63p from every £1? Can't seem to find out any info on the actual money I can earn before they deduct, etc.

Unless you have the work allowance, explained in link. https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances

You can always get a lot of information by just using google.

sofaman

I've tried Google, and apart form the Work Allowance (which I'm not entitled to), I can't find the info anywhere.

Gonna make an appt with an adviser, so hopefully get to the bottom of it. Thanks.

poppy12345

Use a benefits calculator to check entitlement. Any earnings received during your AP will reduce your UC by 63%. https://www.entitledto.co.uk/benefits-calculator/Intro/Home?cid=70dbbdd5-7c96-4b5f-82e3-e17d8ed258a3

Did you look at the links that were posted by calcotti? lots of info in there.

NedS

sofaman said:

I've tried Google, and apart form the Work Allowance (which I'm not entitled to), I can't find the info anywhere.

Gonna make an appt with an adviser, so hopefully get to the bottom of it. Thanks.

In that case (not eligible for the work allowance), it will be a straight 63p in the pound deduction. Self employed earnings are treated no differently to employed earnings.