Self-employment, tax credits and the move to Universal Credit: research summary: summary

Document type
Sainsbury, Roy; Corden, Anne
Date of publication
1 March 2013
Research summary; 829
Poverty Alleviation Welfare Benefits and Financial Inclusion, Employment
Social welfare
Material type

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Some elements of Universal Credit are specific to claimants in self-employment, including a requirement for self-employed claimants who are expected to look for and be available for work: to attend one or more gateway interviews; to provide evidence of self-employment; the use of an assumed income, the Minimum Income Floor, in calculating some awards of Universal Credit; and exemptions from some conditions of entitlement during a start-up period of 12 months from the start of a new claim. There will also be a regime of monthly self-reporting of income and outgoings.

This study set out to learn how current experiences of claiming tax credits might inform continuing development of Universal Credit policy, the extent to which the information requirements placed on claimants are likely to be feasible, and how the distinctive features of Universal Credit (particularly the Minimum Income Floor) might affect people’s circumstances and employment decisions

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