The government has issued guidance on how the furlough scheme and self employment equivalent are treated as income for Universal Credit Memo ADM 10/20 and Memo ADM 11/20
'CJRS and SEISS payments are treated as earnings in the normal way. Each SEISS payment will be treated as self- employed earnings in the AP in which they are received'
'Example 1 – Employee receiving CJRS payments.
A claim for UC is made on 12.05.20 meaning that the first AP is fixed for the period 12.05.20 to 11.06.20. The claimant reports that he is on furlough and receives a CJRS payment of £1050 on 29.05.20. The DM determines that the claimant’s earned income in that AP is £1050.
Example 2 – Self-employed earner receiving SEISS payments.
Existing award. The relevant AP is for the period 20.05.20 to 19.06.20. The claimant reports that she received a SEISS payment of £6,000 on 29.05.20. The claimant has permitted expenses of £1,600. The DM determines that the claimant’s earned income in that AP is £4,400. The claimant has two employees on furlough.'