Self-employed minimum income floor

Minimum income floor (MIF) relates to Local Council Tax Support for people of working age who are self-employed.

If you have been self-employed for more than a year, you are subject to a MIF. It is based on the national living wage of £11.44 per week for those aged 25 years or over as of 1 April 2024.

How it's calculated

A minimum income floor will be applied in the calculation of Local Council Tax Support if the income from your self-employment is less than 35 hours x the hourly National Living Wage for an ordinary employed worker, equal to £400.40 per week.

From this, a deduction of estimated tax, national insurance and half a pension contribution (if being paid) will be used.

For example

35 hours a week multiplied by the national living wage of £11.44 = £400.40

Minus tax of £32

Minus national insurance of £9.60

The minimum income floor would be £358.80 per week

If you are claiming Housing Benefit, self-employed income is still assessed based on your gross income, less any allowable expenses solely in relation to the business. The net income from this assessment would also be subtracted from the minimum income floor.