Self employed people may be hit by the new Universal Credit. Under new rules the Government may impose a miminum level of assumed earnings based on hours worked and minimum wage. The white paper states;
“Some self-employed people under Tax Credits report very low levels of income. We know that in starting up a business that it can take some time before it becomes profitable. But once established we would expect to see a reasonable income from the business activity. So for Universal Credit we are considering introducing a floor of assumed income from self-employment for those registering as such. The floor will be set at the National Minimum wage for the reported hours; clearly profits above this limit may be received and reported.”
Are you self employed? How will this affect you?
If you are self employed then please take a look at Cathy Ashley’s excellent blog regarding Universal Credit and how it may affect you : Universal Credit and the Self-Employed