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 £12.21 per week for those aged 25 years or over as of 1 April 2025.

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 £427.35 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 £12.21 = £427.35

Minus tax of £37.09

Minus national insurance of £14.85

The minimum income floor would be £375.41 per week