Minimum income floor - is take home earnings not pre-tax earnings.

seatbeltnoob

the work coach told me my minimum income floor £1330 (or something along that figure). I thought MIF was £1440 calculated as (9.5 x 35)*52/12

But that £1440 is before taxes. so for someone whose self employed it would be £1315 (or somethign around that) Because £1440 PAY earnings would be subject to NI and tax.

Self empoyed people pay different national insurance rates (ususally less, but varies on income level).

Someone like myself. I have half og my income paid under PAYE through a ltd co, half earned through sole trade. Both of which fall below the NI requirements so dont pay any.

seatbeltnoob

I'm actually not sure what the actual MIF amount is.

I put annualised minimum wage @ 35 hours as a salary into a PAYE calculator online. I put in £17,290 as a salary on https://www.thesalarycalculator.co.uk/salary.php

Basically 9.5 x 35 x 52 (minimum wage by 35 hours by weeks in the year). The after tax amount came to £1314.96. The work coach said my MIF is £1330.

You can't actually get a MIF figure anywhere, they always show you minimum wage hourly rate and the hours youre expected to work per week.

sheramber

https://www.litrg.org.uk/latest-news/news/221117-press-release-low-paid-self-employed-may-well-be-impacted-today’s-minimum

The MIF is usually calculated as 35 hours a week x relevant minimum wage rate, less a deduction for notional tax and national insurance3.
..........................

The MIF is not always set at 35 hours; it depends on the circumstances of the claimant. To work out the level of MIF for an individual you need to multiply the minimum wage for their age group by the number of hours that they are expected to work. A notional amount of tax and national insurance is deducted to arrive at the person’s MIF. If their actual earnings are below the level of their MIF, the MIF will be used instead of their actual earnings when calculating their UC award. ( my bold)

NedS

The notional tax and and NI deducted when calculating the MIF are based on what an employed person would pay who was working 35h x NMW (or whatever your required number of hours are).

You will see the exact MIF amount printed on your UC statement once it is being enforced (after the 12 month start up period).

seatbeltnoob

Oh sorry, I just finished my startup period and yet to have MIF showing up. I can't see it anywhere (yet). I assumed it is hidden away somewhere.

NedS

seatbeltnoob said:

Oh sorry, I just finished my startup period and yet to have MIF showing up. I can't see it anywhere (yet). I assumed it is hidden away somewhere.

Cool. When you get your first statement where the MIF applies, it will show as the amount you are expected to earn, or something like that. It will be in the section relating you your self employed earnings.

As you've shown above, entering the number of hours you are required to work and NMW into a salary calculator should give you the same answer.

tifo

seatbeltnoob said:

I put annualised minimum wage @ 35 hours as a salary into a PAYE calculator online. I put in £17,290 as a salary.

It's basically min wage (£9.50) x 7 hours a day x 260 working days inc bank holidays which gives £17,290 ....