answer text |
<p>Claimants with earnings from self-employment are required to report them to DWP
on a monthly basis. These earnings are reported on a simplified 'cash accounting'
basis, which asks for the total income from receipts into the business and details
of payments out of the business under defined categories during the assessment period.
We assess net earnings after deducting business expenses. The requirements were designed
to be as simple as possible in order for self-employed claimants to easily report
their earnings and monthly reporting allows Universal Credit to be adjusted on a monthly
basis.</p><p> </p><p>Where claimants are in the 12-month grace period or are gainfully
self-employed and earning above the Minimum Income Floor (MIF), the single taper rate
acts to ensure that they are better off working and earning more under Universal Credit,
removing the cliff edges from the old legacy benefits system.</p><p>We announced at
Autumn Budget 2018 that all new gainfully self-employed claimants can, from September
2020, access a 12-month exemption period from the MIF. This change will assist all
gainfully self-employed claimants to grow their earnings, prepare and adjust for the
application of the MIF. In 2022/23 it will allow 130,000 self-employed people the
space to grow a successful business when moving on to Universal Credit.</p>
|
|