Birmingham news Universal Credit for self-employed people - how much is it and how does it work? MetiNews.Com
MetiNews.Com - As the coronavirus pandemic continues and we move further into a third lockdown, those who are self-employed are asking about their benefit entitlements
Breaking News ! Self-employed people whose income has been impacted by the coronavirus pandemic have been invited to apply for a grant. But what about additional help such as Universal Credit? Following two previous cash support payouts, the Self-Employed Income Support Scheme (SEISS) is now offering a third grant to those who put in a claim by January 29, 2021. Your business must have had a "new or continuing impact from coronavirus between 1 November 2020 and January 29, 2021, which you reasonably believe will have a significant reduction in your profits." The third taxable grant is worth 80 per cent of your average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. The Government has explained that may also be possible to get benefits such as Universal Credit, in some circumstances. There are several things you need to know. Universal Credit How much you will receive The extra help you can get New payment rates for 2020 What times it goes in account How much is Universal Credit? The current Universal Credit payments - along with the 2021/2022 changes coming this April - are as follows: Standard allowances For those single and aged under 25, standard allowance is £342.72 including the coronavirus boost. In April it will drop to £257.33 For those single and aged 25 or over, standard allowance per month is £409.89 including the coronavirus boost. In April it will drop to £324.84 For joint claimants both under 25, standard allowance per month is £488.59 including the coronavirus boost. In April it will drop to £403.93 For joint claimants where one or both are 25 or over, standard allowance per month is £594.04 including the coronavirus boost. In April it will drop to £509.91 Read More Related Articles PIP rates 2021/2022 - how much it's going up and all the extras you can get Read More Related Articles All the free stuff you can get on Universal Credit - 27 money saving tips Extra amounts of Universal Credit if you have children For those with a first child born before April 6, 2017, the extra amount is £281.25, going up in April to £282.50 For those with a child (born on or after April 6, 2017) or second child and subsequent child (where an exception or transitional provision applies), the extra amount is £235.83, going up in April to £237.08 For those with a disabled child, the lower rate of the additional payment is £128.
.89 and the higher rate is £400.29, going up to £402.12 Extra amounts of Universal Credit for limited capability for work For those deemed to have limited capability for work, the extra amount is £128.25, rising in April to £128.89 For those deemed to have limited capability for work or work-related activity, the extra amount is £341.92, rising in April to £343.63
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Extra amounts of Universal Credit for childcare costs Those on UC who need help with childcare costs can get up to 85 per cent of it back: For those on UC with one child, the maximum amount given for childcare costs is £646.35 and will stay the same from April For those on UC with two or more children, the maximum amount given for childcare costs is £1108.04 and will also remain the same Extra amount of Universal Credit for being a carer If you are on UC and provide care for at least 35 hours a week for a severely disabled person who receives a disability-related benefit, the extra amount you receive in your UC is £162.92, rising in April to £163.73 Deduction from Universal Credit for non-dependants Non-dependants’ housing cost deductions are £75.15, rising to £75.53 (this is the amount taken off your UC). Non-dependants are people who live with you but not a partner or child - usually it refers to grown-up sons and daughters or elderly relatives.
How the SEISS grant affects Universal Credit If you do qualify to receive both the SEISS grant and Universal Credit, your UC payments may reduce or even stop altogether in some situations. This is because earnings and savings affect Universal Credit. For every £1 you earn, your UC payment reduces by 63p. At present, the Minimum Income Floor - an assumed level of weekly income for a self-employed person, based on the national minimum/living wage rate for your age multiplied by 35 hours - is not in place so this means actual earnings are taken into account. In addition, you and your partner must have £16,000 or less in savings between you in order to receive Universal Credit, so if the SEISS grant takes you over that limit, eligibility for UC will cease.
Universal Credit payments are given in arrears based on the earnings you report at the end of each month. At the end of each monthly assessment period, you need to report: how much you earned from self-employment, even if it’s nothing any money you paid into a pension information about your business This also applies to company directors, even those paying themselves by PAYE. You need to detail all the payments in and out of your business in the assessment period. This includes: the total amount your business received how much your business spent on different types of expenses, such as travel costs, stock, equipment and tools, clothing and office costs how much tax and National Insurance your business paid You also need to report any changes in your circumstances such as: closing your business starting a different kind of business taking a permanent job no longer being able to work
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