Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Staying in credit

goodall_3

Basic rules for universal credit, and the complexities facing self-employed claimants

KEY POINTS

  • Starting in pathfinder areas the universal credit is replacing claims to child tax credits and working tax credits.
  • Many claimants may struggle to understand the “extremely complex” benefit.
  • Complications include monthly assessment periods and calculation of net income.
  • Should universal credit claimants pay their tax liabilities monthly?
  • Will the minimum income floor penalise those in gainful self-employment?

Readers with self-employed clients claiming tax credits will have had to master perhaps reluctantly the complexities of child tax credit and working tax credit.

Universal credit (UC) is set to replace tax credits and some other welfare benefits; but any thoughts that this is likely to be simpler than tax credits or that it can be ignored altogether must be put to one side.

It...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon