Universal Credit - Business Owners

Contents

Overview

Universal credit is a means-tested benefit that provides financial support to people who are on a low income or out of work. 


This benefit can be claimed by directors on low income and self-employed individuals who meet the eligibility criteria. Directors of small limited companies are treated as  self-employed for the purposes of claiming universal credit.


If you are eligible for universal credit, you may be entitled to claim council tax reduction.

Guide to universal credit

Universal Credit can provide financial support for self-employed individuals and directors who are on a low income. If you think you may be eligible, you can apply online and provide evidence of your income and business expenses. 


Here is a simple guide to Universal Credit:


Regular reporting of changes to your self-employed income is important to ensure that your universal credit award is calculated correctly.

Minimum income floor

The minimum income floor (MIF) is a calculation used in the Universal Credit system to determine the minimum amount of income that a self-employed person is assumed to earn. The MIF is intended to reflect the amount that someone working in similar circumstances to the claimant would earn if they were employed.


The minimum income floor is a calculation used in the universal credit system to determine the minimum amount of income that a self-employed person is assumed to earn. 


This calculation is used to ensure that self-employed claimants receive a Universal Credit award that is consistent with the amount that someone working in similar circumstances would receive if they were employed.

How to start a claim

Here are the general steps to claiming Universal Credit as a self-employed person:


Please watch the 'account set-up' instructional video for detailed instructions.

Please watch the 'making an online claim' instructional video for further instructions.


Please watch the 'claiming if you're a couple' instructional video to get further details about claiming as a couple.


Alternatively, you can read the entire PDF guide.