Overview of Self-Employment and Universal Credit

Self-employment has been used as an option for additional income or a complete career change. However, if you are relying on Universal Credit then there are specific measurements and calculations to keep in mind.

Earning Cap

Firstly, those receiving Universal Credit have an earning cap. This capping amount is currently set to a maximum of £2,300 in any one month. This amount can vary from case to case, so ensure you have contacted a Jobcentre in order to find out for yours.

Contributing to Universal Credit

Once the earnings cap has been reached, then any universal credit payments will start to be withheld. This can be seen varying from a basic cutback in the amounts previously receiving or a complete removal of the payment until the next assessment period.

Finding Information

It is important to remember that any reliable information should be found on the government website. This is essential to check the status of your payment regarding any changes through self-employment.

Important Points to Remember

When considering self-employment or switching to self-employment ensure that you:

  • Contact the Jobcentre: Make sure you make contact with your local Jobcentre Plus regarding your request to switch to self-employment.
  • Check your entitlement: Use the government website to calculate what your current entitlements are and how they could be affected by any changes.
  • Keep up-to-date with payments: Staying updated with payments and Universal Credit amounts is essential. This will help to avoid any deductions or cuts to the usual amount received.

In conclusion, if you are considering self-employment then it is important to be aware of the effects this could have on Universal Credit payments. Instead of presuming that the payments made after switching to self-employment reflect the usual amount, it is always best to do your research ahead of planning the switch and ensure you remain in contact with the Jobcentre.

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