Claiming Housing benefit while self-employed

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BadBunnie
BadBunnie Posts: 12 Forumite
in Benefits & tax credits
TL;DR

Can someone link me the legislation that governs housing benefit calculations for self-employed claimants? Specifically, using loans as income.


There is a very long and complicated story behind this question so I'm just going to ask the question. Can someone link me the legislation that governs housing benefit calculations for self-employed claimants? Currently looking at how a government-backed start-up loan who's t&cs state it can only be used for business expenses can be used as an income and, by extension, to pay rent.

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  • pmlindyloo
    pmlindyloo Posts: 13,049 Forumite
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    BadBunnie wrote: »
    TL;DR

    Can someone link me the legislation that governs housing benefit calculations for self-employed claimants? Specifically, using loans as income.


    There is a very long and complicated story behind this question so I'm just going to ask the question. Can someone link me the legislation that governs housing benefit calculations for self-employed claimants? Currently looking at how a government-backed start-up loan who's t&cs state it can only be used for business expenses can be used as an income and, by extension, to pay rent.

    I am not quite sure what legislation you are after.

    Are you saying that you have been given a loan for your business and you are asking whether this loan would be counted as capital for claiming housing business?

    And/or are you saying that you have been given a loan for your business and are drawing down a salary from your business for living expense/rent etc?

    I can give you the link for the Decision Makers Guide for Housing Benefit and the assessment of capital here:

    https://www.gov.uk/government/publications/housing-benefit-and-council-tax-benefit-guidance-part-b

    but you may get more help if you explain exactly what you mean.
  • BadBunnie
    BadBunnie Posts: 12 Forumite
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    We are claiming housing benefit and council tax as self-employed on little to no income. We take no wage but do draw from the business when it's unavoidable. Housing expenses are paid from tax credits and the food is bought for us by family. My partner received the government-backed start-up loan and it is being counted as income that we can spend on household expenses even though the terms are that it can only be used for business and we can show that to be the case. My question is: how can a business liability be used as income for the purposes of housing benefit and council tax reduction. Thanks for the guidance notes :)
  • BadBunnie
    BadBunnie Posts: 12 Forumite
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    update: just to clarify it is being treated as income and not capital
  • sheramber
    sheramber Posts: 19,109 Forumite
    First Anniversary I've been Money Tipped! First Post Name Dropper
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    draw from the business when it's unavoidable.

    What amounts are you drawing from the business?

    Could this be the amount being counted as income?
  • BadBunnie
    BadBunnie Posts: 12 Forumite
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    I'd imagine the drawings are being treated as income yes. I can check that once they have completed my subject access request. However, I'm not disputing their use of drawings as income, that I agree with. It's their use of a liability as income that doesn't make sense. According to the guidance notes that have been linked in this thread, this loan should have been treated as capital and, therefore, disregarded as it's under £16,000. I have a meeting with my local councillor next week to discuss how best to approach this council as they are unwilling to amend their decision at this point. Thanks for your help so far :)
  • CIS
    CIS Posts: 12,260 Forumite
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    Was it the 'New Enterprise Allowance' that was paid ?

    Craig
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
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