Universal Credit Minimum Income Floor (MIF) calculator
UC Minimum Income Floor 2026/27 - £1,927 a month gross at 35 hours on the NLW. See your MIF, the earnings DWP counts and what it does to your UC.
If you are self-employed on Universal Credit, DWP has decided you are gainfully self-employed, you would otherwise have all work-related requirements and you are not in a start-up period, it assumes you earn at least a minimum amount each month: the Minimum Income Floor (MIF). In 2026/27, for someone aged 21 or over expected to work 35 hours a week, it is £1,927 a month before an allowance for tax and National Insurance, or about £1,680.74 after it on our estimate. Earn less and UC is worked out as if you earned the MIF; earn more and your actual earnings are used. Enter your figures for one assessment period below.
Enter your figures and press the button.
How the MIF is worked out
The MIF is your individual threshold, the same figure that decides whether you have to look for more work, converted to a net amount (regulation 62(4)). Three steps:
- Minimum wage for your age, times your expected hours. The hourly rate is the one a person of your age is paid under the National Minimum Wage Regulations, not the apprentice rate (regulation 90(2)). Expected hours are 35 a week unless a lower number applies (regulation 88).
- Convert to a month: multiply by 52 and divide by 12, and drop any fraction of a pound (regulation 6(1A)).
- Deduct notional tax and NI: "such amount for income tax and national insurance contributions as the Secretary of State considers appropriate" (regulation 62(4)(b)). DWP does not publish how it works this out. Its decision-makers' guide gives an example "for illustrative purposes only" (ADM H4079), and its operational guidance says only that "Notional tax and National Insurance payable on actual earnings are applied to produce a net earnings figure", with no rates or method (DWP, Applying the Minimum Income Floor, deposited in Parliament in 2024 as DEP2024-0673). The same guidance describes the MIF as what "a person in employed work in similar circumstances" could expect to earn at minimum wage, so we estimate the deduction as the Income Tax (20% above the £12,570 Personal Allowance) and employee Class 1 National Insurance (8% above the £12,570 Primary Threshold) that an employee paid the gross figure every month would pay. We do not use self-employed Class 2 or Class 4. As a cross-check, the Low Incomes Tax Reform Group's 2026/27 example deducts "say £246.23" from £1,927.68 (LITRG response to the Low Pay Commission, 24 June 2026); ours is £246.26 on £1,927, because regulation 6(1A) drops the pence first. Your UC statement shows the real figure.
| Age | Hourly rate | Gross a month | Tax and NI (est.) | MIF (est.) |
|---|---|---|---|---|
| 21 or over | £12.71 | £1,927 | £246.26 | £1,680.74 |
| 18 to 20 | £10.85 | £1,645 | £167.30 | £1,477.70 |
| Under 18 | £8 | £1,213 | £46.34 | £1,166.66 |
Rates: National Minimum Wage Regulations 2015, reg 4 and reg 4A; the National Living Wage is for people aged 21 and over (gov.uk). Fewer expected hours give a lower MIF: at 25 hours a week (aged 21 or over) it is £1,376 gross, about £1,284.02 net; at 16 hours, £881 gross, which is below the point where any tax or NI is due on our estimate. In Scotland the Scottish Income Tax rates change our estimate slightly: at 35 hours, aged 21 or over, about £1,684.05. The minimum wage rates change each April, and the MIF follows them. The government announced on 28 October 2026 that from April 2027 the National Living Wage will be £13.21, the 18 to 20 rate £11.27 and the 16 to 17 rate £8.31, accepting the Low Pay Commission's recommendations (Low Pay Commission). They are announced, not yet in force, and this calculator uses the current rates.
Who the MIF applies to
Regulation 62(1) applies the MIF only if both of these are true:
- You are in gainful self-employment. DWP has decided that self-employment is your main employment, your earnings from it are self-employed earnings, and it is "organised, developed, regular and carried on in expectation of profit" (regulation 64). gov.uk lists the evidence your work coach may ask for: tax returns, accounts or a business plan, your UTR, customer and supplier lists, receipts and invoices, and marketing materials (gov.uk).
- Apart from the MIF and your earnings, you would have all work-related requirements (Welfare Reform Act 2012 section 22). People in the other groups are not subject to the MIF.
So the MIF does not apply, for example, if you:
- have limited capability for work, with or without work-related activity (s.19(2)(a), s.21(1)(a));
- are the lead (responsible) carer of a child under 1, aged 1, or aged 2 (s.19(2)(c), s.20(1)(a), s.21(1)(aa));
- have regular and substantial caring responsibilities for a severely disabled person (s.19(2)(b));
- have reached the qualifying age for State Pension Credit, are pregnant with 11 weeks or less to go before the expected week of birth, gave birth 15 weeks ago or less, or had a child placed with you for adoption 12 months ago or less (regulation 89, which lists more cases).
If your circumstances change, DWP's own guidance gives the example of a self-employed claimant who has a baby and moves into the no work-related requirements group: "The minimum income floor no longer applies" (ADM H4061). If you are the lead carer of a child aged 3 or over, or have an impairment, your expected hours (and so your MIF) can be lower than 35.
The 12-month start-up period
A new business can get a start-up period of 12 months, running from the beginning of the assessment period in which DWP decides you are gainfully self-employed (regulation 63(1)). During it your actual earnings are used and there is no MIF: the MIF cannot apply to an assessment period that falls wholly within, or begins or ends in, a start-up period (regulation 62(5)). The conditions:
- the MIF has not already applied to you for the trade that is now your main employment, on this or an earlier UC award;
- you are taking active steps to increase your earnings to your individual threshold;
- you have not had a start-up period before, unless the earlier one began more than 5 years before and was for a different trade that you have stopped (regulation 63(2)).
DWP can end it early if you stop being gainfully self-employed or stop taking those steps (regulation 63(3)). gov.uk says you will have quarterly appointments with your work coach during it (gov.uk), and DWP guidance says the start-up period keeps running if your award ends and you reclaim within the 12 months (ADM H4102, example 2).
What the MIF does to your UC: worked examples
UC is reduced by 55% of earnings above your work allowance. There is a work allowance only if the claim includes a child or someone with limited capability for work: £710 a month without housing costs in the award, £427 with them (regulation 22). When the MIF applies, the 55% is taken from the MIF instead of what you earned.
Single, aged 30, renting, no children
Maximum award: the £424.90 standard allowance plus, say, £500 of rent = £924.90. No work allowance. This month £1,500 came in and £400 went on expenses, so self-employed earnings are £1,100. That is below the MIF of about £1,680.74, so UC deducts 55% of the MIF, £924.41, leaving £0.49. On actual earnings the deduction would be £605 and UC £319.90, which is what the same person gets in a start-up period (£319.90).
Single parent, child aged 9, 25 expected hours
With a child at primary school the work coach agrees 25 expected hours, so the MIF is about £1,284.02. Maximum award: £424.90 standard allowance, £303.94 child element (child born after 6 April 2017) and £600 rent = £1,328.84, with the £427 work allowance. Earnings this month are £800. UC deducts 55% of (£1,284.02 - £427) = £471.36, paying £857.48, against £1,123.69 on actual earnings: the MIF costs £266.21 this month.
Rent figures are illustrative; the housing element can be capped below your rent. MIF figures use our tax and NI estimate. Each figure is computed by the calculator above.
Couples
For joint claimants the couple threshold is the sum of your two individual thresholds (regulation 90(3)(a)). If you are below your own threshold and the two of you together earn less than the couple threshold, you are treated as earning your own threshold, minus any amount by which that plus your partner's earnings would exceed the couple threshold (regulation 62(3)). If your partner is also gainfully self-employed, would otherwise have all work-related requirements (Welfare Reform Act 2012 section 22) and is not in a start-up period, the same test is applied to them.
DWP's own example, with illustrative thresholds of £950 each (couple threshold £1,900): one partner's self-employed earnings are £500 and the other earns £1,200. Raising the first to £950 would make £2,150, £250 over, so the first partner is treated as earning £700 (ADM H4080).
A partner's individual threshold depends on their own work-related group: their expected hours if they have all work-related requirements, or 16 hours if they have only a work-focused interview or work preparation requirement (regulation 90(2)). If your partner has no work-related requirements, the calculator does not work out a couple threshold; ask your work coach. Couples where one partner claims as a single person have a different couple threshold (regulation 90(3)(b)), which this calculator does not cover.
What the calculator does not do
- Losses carried forward. A loss in one month gives nil earnings that month and is deducted from later months' earnings, oldest first (regulation 57, 57A). DWP compares the earnings left after that deduction with the MIF (ADM H4503). If you have unused losses, the calculator stops rather than guess.
- A job as well. DWP adds your PAYE earnings to your self-employed earnings and uses the total or the MIF, whichever is higher; your job's hours do not change the MIF (DWP, Applying the Minimum Income Floor). The calculator does not combine the two.
- Surplus earnings. If an earlier award ended because of high earnings and you reclaimed within 6 months, surplus earnings can be added to your earnings before the MIF test (regulation 54A, regulation 62(4A)). Not modelled.
- Northern Ireland has its own Universal Credit regulations. This page applies the Great Britain rules.
- Other deductions from your award, such as unearned income, savings over the lower capital limit, advances or sanctions, are not modelled. Enter your maximum award before them.
Related
- Universal Credit calculator: your maximum award and payment.
- How earnings affect Universal Credit: the taper and work allowances in detail.
- Working on Universal Credit.
- Self-employed tax calculator: your Income Tax and Class 4 NI for the year.
- Side hustle tax guide.
Frequently asked questions
What is the Universal Credit Minimum Income Floor?
It is a level of earnings DWP assumes you have if you are gainfully self-employed, would otherwise have all work-related requirements, are outside a start-up period, and earn less than it. Your Universal Credit is then worked out as if you had earned the floor, so a low month does not raise your UC. It is based on the minimum wage for your age times the hours you are expected to work, less an amount for tax and National Insurance (Universal Credit Regulations 2013, regulation 62).
How much is the Minimum Income Floor in 2026/27?
For someone aged 21 or over expected to work 35 hours a week, the gross figure is £1,927 a month: £12.71 x 35 x 52 / 12, with the pence dropped. DWP then deducts notional tax and National Insurance, an amount it decides and does not publish a method for. Our estimate is £246.26, which leaves about £1,680.74. Your UC statement shows your actual MIF.
Who does the Minimum Income Floor not apply to?
It applies only if DWP has decided you are in gainful self-employment and, apart from the MIF, you would be in the all work-related requirements group. So it does not apply during a start-up period, or if, for example, you have limited capability for work, are the lead carer of a child under 3, have regular and substantial caring responsibilities for a severely disabled person, or have reached State Pension Credit age.
What is the Universal Credit start-up period?
A 12-month period, from the start of the assessment period in which DWP decides you are gainfully self-employed, when your actual earnings are used and no MIF applies. It is only available if the MIF has not already applied to you for the trade that is now your main work, and you must be taking active steps to raise your earnings to your threshold. DWP can end it early if those conditions stop being met. After one start-up period, DWP may give another only if the earlier one began more than 5 years before and was for a different trade you have stopped (regulation 63).
Can my Minimum Income Floor be based on fewer than 35 hours?
Yes. Your expected hours are 35 unless a lower number applies, for example if you are the lead carer of a child, care for someone, or have a physical or mental impairment (regulation 88). Fewer expected hours means a lower MIF. If your circumstances change, tell your work coach so the MIF can be reviewed.
What happens to the MIF if I make a loss?
Your self-employed earnings for that month are nil, and if the MIF applies to you, you are treated as earning the MIF anyway. The loss is carried forward and deducted from your profit in later months, oldest loss first, until it is used up (regulations 57 and 57A); there is no fixed time limit. It is used up in months below the MIF too, where it makes no difference to your UC (DWP guidance, ADM H4503), so it helps only in a month when you earn above the MIF. If your award ends and you claim again within 6 months, DWP may carry the loss into the new award (regulation 57A(3)).
How does the MIF work for a couple?
If you are below your own MIF and the two of you together earn less than your couple threshold, you are treated as earning your MIF, reduced so that it plus your partner's earnings does not exceed the couple threshold (regulation 62(3)). For joint claimants the couple threshold is the sum of your two individual thresholds.