Universal Credit Minimum Income Floor Calculator

8 72 x 35 305 20 per week.

Universal credit minimum income floor calculator. Universal credit includes a minimum income floor mif if you are gainfully self employed and your business has been running for more than 12 months. Your payment will be worked out as if you d earned the minimum income floor amount. If you earn less than your minimum income floor. For universal credit if you are self employed and your earned income is lower than your minimum income floor mif the mif will be used instead of your actual earnings when calculating your universal credit award less an amount to reflect income tax and national insurance.

The mif is an assumed level of earnings. The universal credit minimum income floor mif will be temporarily removed for self employed workers who will lose income if they have to self isolate. If you earn more than the minimum income floor you will get less universal credit. What is the minimum income floor and how does it work.

The minimum income floor equates to what someone would earn if they worked for 35 hours a week at the national minimum wage for their age group. It s also removed the minimum income floor to help self employed people whose income has fallen and increased the allowance for private renters who need help with housing costs. In response to the coronavirus crisis the government has made changes to universal credit including upping the monthly standard rate eg from 317 82 to 409 89 for single people aged 25 or over. Universal credit minimum income floor.

If you earn less your payments will still be calculated as if you did earn the minimum income floor. His minimum income floor for any assessment period using current figures should therefore be. You get a 12 month start up period for the first 12 months of your universal credit claim if you started your business less than one year before you started your claim. Universal credit includes a minimum income floor mif if you are gainfully self employed and your business has been running for more than 12.

So for someone over the age of 25 this would be 1 245 18 per month or 8 21 per hour. In the start up period your universal credit payment is calculated based on your actual earnings even if they are lower than your minimum income floor. Your minimum income floor is the amount the dwp uses to set your universal credit payment each month. The basic rule is for every extra 1 you earn your universal credit will go down by 63p.

The minimum wage for the number of hours the claimant is expected to work is based on the national minimum wage of 8 72 an hour for a 35 hour week.