Universal Credit & Tax Credits

If your self employed profits (or for directors, salary and dividend) – combined with any jobs or other sources of income – are below the prescribed limits you may be able to claim Universal Credit to help top your income up.

  • Universal Credit replaces the former Tax Credit System.
  • Universal Credit is means tested as regards both savings and income
  • Your partners income is taken into account
  • Housing costs and children are factored in

Universal Credit Rates (2022/23):

  • Single and under 25 £265.31 / month
  • Single and 25 or over £334.91 / month
  • In a couple and you’re both under 25 £416.45 (for you both) / month
  • In a couple and either of you are 25 or over £525.72 (for you both) / month
  • These are the basic rate – there may be increments for your circumstances
  • These rates taper off the more you earn, or the more savings you have

Alas Universal Credit is not straightforward, and some perseverance may be needed in understanding it, especially if you are Self Employed.

For more detail, view HMRCs guide

We haven’t given details of the thresholds in this summary, as they are far from simple and vary according to circumstances. It is best to use a calculator to check your circumstances.