Self-employment and Universal Credit
Universal Credit is a monthly payment to help with your living costs. You may be able to get it if you’re on a low income, out of work or you cannot work.
Find out if you’re eligible for Universal Credit.
If you live in Northern Ireland, go to Universal Credit in Northern Ireland.
If your business has been affected by coronavirus (COVID-19)
You may be able to get a grant through the Self-Employment Income Support Scheme.
If you get the grant, your Universal Credit payments may stop or go down.
Providing information about your income and earnings
At the end of each monthly assessment period, you’ll need to report:
- how much you earned from self-employment, even if it’s nothing
- any money you paid into a pension
- information about your business
This also applies to company directors, even those paying themselves by PAYE.
Information about your business
You’ll need to report payments into and out of your business in the assessment period. This includes:
- the total amount your business received
- how much your business spent on different types of expenses, such as travel costs, stock, equipment and tools, clothing and office costs
- how much tax and National Insurance your business paid
Your business’s property
You do not need to report things your company already owns (‘business assets’), such as machinery, buildings or cash in your company account.
How your Universal Credit payment is worked out
Your Universal Credit payment will be based on the earnings you report at the end of each monthly assessment period.
If you’re already getting Universal Credit
The way your Universal Credit payment is worked out has temporarily changed because of coronavirus.
Payments are not currently being calculated using an assumed level of earnings, called a Minimum Income Floor. They are now based on your actual earnings.
If your payments were calculated using the Minimum Income Floor, they may change.
If you’re both self-employed and employed
Your Universal Credit payment will be calculated based on your combined earnings from self-employment and employment.
If you make a loss from self-employment, only your employment earnings will be used to calculate how much Universal Credit you get.
Reporting changes in your circumstances
You’ll need to report any change in circumstances, for example if you:
- close your business
- start a different kind of business
- take a permanent job
- are no longer able to work