Trap for the Self Employed

MakingWorkersPay

Tax credits cut 100%  for self employed without children, up to 70% for a single parent and 58% for a couple with children under Universal Credit

Update: the cuts below were  in place before the election, but  more cuts were announced in the Summer Budget. The Universal Credit Work Allowance drops from up to £263 /m (single parent +1 child+ housing element) to £192 and is abolished for childless claimants. The following figures are therefore underestimated.

Hidden in plain sight – trick or mistake?

the mechanism to cut scales11100% from some self employed claimants Universal Credit claimant’s basic awards is already in the Welfare Reform Act.  An 87% reduction to the Universal Credit Work Allowance for claimants with no dependant children combined with a limit on entitlement if they earn too little, cuts their basic award by 100%. For self employed parents, the basic award could be cut by up to…

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