Glossary · UK
What is Minimum Income Floor (MIF)?
A Universal Credit rule that assumes self-employed claimants earn at least the National Living Wage for their expected hours, regardless of actual earnings.
Full Definition
The Minimum Income Floor (MIF) is a Universal Credit (UC) rule that applies to self-employed claimants after their 12-month startup period ends. It assumes that a self-employed person earns at least the equivalent of the National Living Wage (GBP 12.71/hour from April 2026) for their expected weekly hours -- typically 35 hours for a full-time worker. If your actual self-employed earnings are lower than the MIF, UC treats you as if you earned the MIF amount, which reduces your UC payment accordingly. This means low-earning self-employed people do not receive the same top-up as employees with equivalent low earnings. The 12-month startup period exempts new businesses from the MIF, giving new self-employed claimants a year to build their income without the MIF applying. The MIF is calculated individually per claimant and takes account of caring responsibilities and part-time working expectations. HMRC and DWP share data on self-employed income through the Real Time Information (RTI) system and annual self-assessment returns.