The Universal Credit system expects a lot from self-employed claimants. Any self-employed legacy benefit claimant thinking of claiming UC because they will be better off should first consider the other implications of claiming UC.

They must report their income and expenses every month or risk having their payments suspended.

When someone who is self-employed makes a claim for Universal Credit / or someone on Universal Credit already starts self-employment, they will have to attend a 'Gateway Interview' interview and provide the DWP with information regarding their business so that the DWP can work out whether or not they are 'gainfully self employed'.

If gainfully self-employed

If they are then will be entitled to a 12 month 'start-up period' during which their UC award will be based on their actual earnings as long as they attend four quarterly meetings.

After the 12 months 'start-up period' however they may be subject to the minimum income floor. If they are then they will be treated as earning a certain amount from their self-employment and this level of earnings will be taken into account when their UC is assessed even if their actual self-employed earnings are lower than this in any Monthly Assessment Period.

If not gainfully self-employed

If the DWP decide the claimant is not gainfully self-employed, they they will usually be expected to look, and be available, for other work while they’re getting Universal Credit.