Some self-employed individuals who receive Universal Credit may be affected and result in a hefty penalty
Universal Credit, a significant source of income for some self-employed individuals, could potentially be lost. This benefit is designed to assist with living costs and can be claimed by those on a low income, out of work, or unable to work.
The amount received depends on earnings reported to the Department for Work and Pensions at the end of each monthly assessment period. The calculation of Universal Credit payments is based on an assumed level of earning - the minimum income floor. If actual earnings exceed this floor, then the Universal Credit payment is calculated based on these earnings.
However, if earnings are lower, the DWP uses the minimum income floor to calculate potential payments. As earnings may fluctuate slightly each reporting period, several periods will be examined to ensure more consistent Universal Credit payments.If a loss rather than a profit is reported, the loss will be carried over until a profit is made, which could result in increased Universal Credit payments until the loss is accounted for.
If your earnings exceed the limit by £2,500 or more, your Universal Credit payments will be halted and any excess over £2,500 will be treated as income in the subsequent assessment period. However, this does not rule out the possibility of receiving Universal Credit again in the future. The DWP stresses that you can qualify for Universal Credit again if your income falls below the threshold, taking into account any carry-over amount, in the next evaluation period. Comprehensive information on Universal Credit payments for self-employed individuals, including application procedures, is available on gov.uk.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
People on Universal Credit may face a penalty for not reporting these 16 changesThere are currently 3,100 full-time DWP agents reviewing Universal Credit claims.
Read more »
DWP Universal Credit change sees 280,000 cut off from benefitsNew figures released by the Department for Work and Pensions showed 32 per cent of people sent a letter to switch from legacy benefits had failed to respond
Read more »
DWP update after calls for £7,500 Universal Credit increasePayments could increase by over £620 a month
Read more »
DWP responds to proposal to boost Universal Credit by £600 a monthA Labour MP set out plans for more additional payments for the benefit
Read more »
New DWP changes to PIP and Universal Credit assessments due to start this monthDelivery of functional health assessments is set to change in September.
Read more »
DWP can stop Universal Credit and PIP payments if you go abroadThe DWP has a new system in place for formally reporting travel plans if you are receiving Universal Credit - and it could affect your payments
Read more »