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The Universal Credit (Surpluses and Self-employed Losses) (Digital Service) Amendment Regulations 2015

Consolidated Text Cited authorities 19 Cited in Amendments 9 Related
Vincent
JurisdictionUK Non-devolved
  • These Regulations may be cited as the Universal Credit (Surpluses and Self-employed Losses) (Digital Service) Amendment Regulations 2015 and come into force on
    • (1) The Universal Credit Regulations 2013(2) After regulation 54 (calculation of earned income – general principles) insert—
      (54A) F3Surplus earnings
    • (1) This regulation applies in relation to a claim for universal credit where—
    • (a) the claimant, or either of joint claimants, had an award of universal credit (the “old award”) that terminated within the 6 months ending on the first day in respect of which the claim is made;
    • (b) the claimant has not, or neither of joint claimants has, been entitled to universal credit since the old award terminated; and
    • (c) the total earned income in the month that would have been the final assessment period for the old award, had it not terminated, exceeded the relevant threshold.
    the claimant, or either of joint claimants, had an award of universal credit (the “old award”) that terminated within the 6 months ending on the first day in respect of which the claim is made;the claimant has not, or neither of joint claimants has, been entitled to universal credit since the old award terminated; andthe total earned income in the month that would have been the final assessment period for the old award, had it not terminated, exceeded the relevant threshold.Where this regulation applies in relation to a claim, any surplus earnings determined in accordance with paragraph (3) are to be treated as earned income for the purposes of determining whether there is entitlement to a new award and, if there is entitlement, calculating the amount of the award.if the claim in question is the first since the termination of the old award, the amount of the excess referred to in paragraph (1) (c) (“the original surplus”) ;the original surplus, plusthe total earned income in the month that would have been the first assessment period in relation to the first claim,the adjusted surplus from the second claim, plusthe total earned income in the month that would have been the first assessment period in relation to the second claim,if the claim in question is the fourth or fifth since the termination of the old award, an amount calculated in the same manner as for the third claim (that is by taking the adjusted surplus from the previous claim) .if the claim in question is the first joint claim by members of a couple, each of whom had an old award (because each was previously entitled to universal credit as a single person or as a member of a different couple) , the amounts of any surplus earnings from the old award or from a previous claim that would have been treated as earned income if they had each claimed as a single person are to be aggregated; anda single claim where the claimant had an old award, or made a subsequent claim, as a joint claimant, ora joint claim where either claimant had an old award, or made a subsequent claim, as a member of a different couple,No amount of surplus earnings is to be taken into account in respect of a claimant who has, or had at the time the old award terminated, recently been a victim of domestic violence (within the meaning given by regulation 98) .In this regulation—
    • “total earned income” is the earned income of the claimant or, if the claimant is a member of a couple, the couple's combined earned income, but does not include any amount a claimant would be treated as having by virtue of regulation 62 (the minimum income floor) ;
    • “the nil UC threshold” is the amount of total earned income above which there would be no entitlement to universal credit, expressed by the following formula—
    (3) In regulation 62 (minimum income floor) Where this regulation applies in respect of an assessment period in which surplus earnings are treated as an amount of earned income under regulation 54A (surplus earnings) , that amount is to be added to the claimant’s earned income before this regulation is applied and, in the case of joint claimants, it is to be added to the earned income of either member of the couple so as to produce the lowest possible amount of combined earned income after this regulation is applied.(1) The Universal Credit Regulations 2013 are amended as follows.(2) In regulation 57 (self-employed earnings) for paragraphs (2) and (3) substitute—
    • (2) A person’s self-employed earnings in respect of an assessment period are to be calculated as follows.
      • Step 1
      • Calculate the amount of the person’s profit or loss in respect of each trade, profession or vocation carried on by the person by—
        • (a) taking the actual receipts in that assessment period; and
        • (b) deducting any amounts allowed as expenses under regulation 58 or 59.
      • Where a trade, profession or vocation is carried on in a partnership, take the amount of the profit or loss attributable to the person’s share in the partnership.
      Step 2
      • If the person has carried on more than one trade, profession or vocation in the assessment period, add together the amounts resulting from step 1 in respect of each trade, profession or vocation.
      Step 3
      • Deduct from the amount resulting from step 1 or (if applicable) step 2 any payment made by the person to HMRC in the assessment period F4by way of national insurance contributions or income tax in respect of any trade, profession or vocation carried on by the person.
      • If the amount resulting from steps 1 to 3 is nil or a negative amount, the amount of the person’s self-employed earnings in respect of the assessment period is nil (and ignore the following steps) .
      Step 4
      • If the amount resulting from step 3 is greater than nil, deduct from that amount any relievable pension contributions made by the person in the assessment period (unless a deduction has been made in respect of those contributions in calculating the person’s employed earnings) .
      • If the amount resulting from this step is nil or a negative amount, the person’s self-employed earnings in respect of the assessment period are nil (and ignore the following step) .
      Step 5
      • If the amount resulting from step 4 is greater than nil, deduct from that amount any unused losses (see regulation 57A) , taking the oldest first.
      • If...
    A person’s self-employed earnings in respect of an assessment period are to be calculated as follows.

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