DWP issues guidance on how payments under CJRS and SEISS are treated for purposes of universal credit

New ADM Memo sets out treatment of payments in the assessment of income and capital

The DWP has issued new guidance on how payments under the Coronavirus Job Retention Scheme (CJRS) and the Self-Employment Income Support Scheme (SEISS) are treated for the purposes of universal credit.

In ADM Memo 11/20, the DWP sets out guidance to decision makers including that -

• CJRS and SEISS payments are treated as earnings in the normal way;
• each SEISS payment will be treated as self-employed earnings in the assessment period in which it is received;
• business grants and loans intended to provide support during the coronavirus outbreak will be treated as payments of capital and will be disregarded as business assets;
• wages in respect of their employees covered by CJRS should not be reported as expenses by a self-employed earner - HMRC rules require that all monies received by employers under the CJRS must be paid to eligible employees;
• self-employed earners who are also paid as employees (eg company directors) may also receive CJRS payments - if these are reported through Real Time Information there is no requirement for self-declaration; and
• self-employed claimants cannot claim as allowable expenses any expense that has been reimbursed through a coronavirus grant or loan.

ADM Memo 11/20 is available from gov.uk