Step 2 – self-employed

Deductions for earned income (if you’re self-employed)

You should have already worked out the Maximum Universal Credit amount in step 1. Deductions may be made from this figure for your earned income, unearned income, and because of the Benefit Cap.

‘Earned income’ includes both: employed earnings, and self-employed earnings. What counts in either situation is the amounts you receive in the assessment period.

If you are confident that neither you nor your partner has any earned income you can go straight to step 3.

If you or your partner are self-employed (or both employed and self-employed) you can work out your earned income on this page instead.

  • wages;
  • overtime pay;
  • tips, bonuses, and commission;
  • holiday pay;
  • sick pay (including SSP);
  • pay for parental leave (including SMP, SPP, SAP, SSPP, and SPBP);
  • tax & NI rebates; and
  • equal pay settlements