Claiming JSA and declaring earnings...

tobybowes

Hello, First ill give you a little background information.

I am currently signing on to Job Seekers Allowance (JSA) and have been for over 12months through no fault of my own. Due to the lack of the jobs on the market i decided a few months ago that I would give self-employment a try (as a mobile dj).
I purchased the equipment costing over £1000, handed out a few business cards and the calls have slowly started coming in.
I understand that to stay on JSA you must be working under 16 hours and you get to keep the first £5 of you weekly earnings.
Now because im new to self-employment if i get a call and book a gig for 1 night (4hours + setup time) i would charge £80, i would then be able to keep £5 of that if declared (which is less than the cost of the travel and insurance for the event etc), if i was to sign off i might only get one gig in 4 weeks (again making me at a loss).
What would be the best option?

Also, I have my first gig tonight, although its booked at £80 i was thinking about dropping my price to £5 hence not losing anything really and giving myself a kind of training session.... would this all be above board?

I went into the venue last and the landlord told me he had also recieved a letter from the Job Centre Plus office stating im now working for him, they didnt know about the event as it was going to be declared on tuesday (ive always declared post-payment). Im concerned that someone might of called the benefit hotline or something (i have at no point wanted to cheat the system or kept the event quiet), what should i do?

The event is tonight, i see my advisor on tuesday.
Should i just charge £5?
Should i declare it before hand?
Or can i sign off as of yesterday and sign back on tomorrow (i think this would be dodgy but im only asking cause ive no idea).
Im panicing when all i wanted to do was get back on the work ladder

Thanks,
tobybowes

(hope this has all made sense)

mountainofdebt

Whilst I appreciate your efforts to get back into work, I don't think you can have your cake and eat it at the same time.

Either you are employed / self employed or unemployed.

btw have you informed HMRC that you have self employed earnings?

Vader123

It doesn't look very good from a outsider view.

You are on JSA yet can afford £1000 on equipment, have business cards etc. I can see why someone would report you (if for nothing else but the "envy" factor").

What will be the clincher here is, do the JC know anything about this DJ thing? Or was the first thing they knew was a tip off?

Vader

tobybowes

Thanks for the reply. I was informing HMRC on monday morning again after i have been paid.

Im not trying to "have my cake and eat it" though. I am fully declaring everything. (If i go back in a couple years i can also add i worked at a bar 8hours per week for 3months and declared all of that earning just £5 per week, most said i was stupid but i wantd to be above board and it eventually worked our well cause i ended up with on average 50hours per week when i signed off).

All i want is some opinions, should i just charge £5 as thats all i can keep? Should i declare im earning say £5 before the event or on my next sign on as usual? And why would the landlord recieve a letter informing him im working for him when i havent informed the jobcentre of this event yet and im doing it self-employed?

tobybowes

Vader123 wrote: »

It doesn't look very good from a outsider view.

You are on JSA yet can afford £1000 on equipment, have business cards etc. I can see why someone would report you (if for nothing else but the "envy" factor").

What will be the clincher here is, do the JC know anything about this DJ thing? Or was the first thing they knew was a tip off?

Vader

Theyve known for months, theyve put me in touch with Business Link and the other agencys aswell, all they dont know is ive managed to book a gig.

As for the money, ive always been a believer in you have to spend money to earn money (especially with self-employment). I took out a personal loan to cover the equipment which will be paid off as i get the work in, without spending the money i could be stuck on JSA for another year or more.

(More background, ive applied for over 300 jobs in the past year just like the majority of people on JSA but nothing has come of any of it. I just want to get back on the ladder so muc).

Thanks

Vader123

should i just charge £5 as thats all i can keep?

I would not go ahead with the gig at all until its all "above board". As mentioned you need to talk this through with the JC and register for tax.

Vader

tobybowes

Vader123 wrote: »

I would not go ahead with the gig at all until its all "above board". As mentioned you need to talk this through with the JC and register for tax.

Vader

I totally understand this, but the thing is its booked, its tonight, my advisor is not available to talk to until monday morning at the earliest. If i cancel now I will get such a bad representation I might aswell give up, i wouldnt even be able to step foot in the venue through the shame of having to do it.


Ive been on JSA so long now it keeps going through my mind that it would be easier to get a council house (paid for), get my weekly allowance, and my partner wants a child (which would also be paid for). I want to do it properly but i get so down and i can see this would be the easier way out....am i the only one who thinks the system is messed up, i cant do right for doing wrong

Vader123

Ive been on JSA so long now it keeps going through my mind that it would be easier to get a council house (paid for), get my weekly allowance, and my partner wants a child (which would also be paid for).

It might all be "paid for" as you put it, but you will have more money, freedom and self esteem if you earn your own money.

, its tonight, my advisor is not available to talk to until monday morning at the earliest

Have you not spoken to your adviser and said "What happens if I get a gig regarding my payment?"

If i cancel now I will get such a bad representation I might aswell give up, i wouldnt even be able to step foot in the venue through the shame of having to do it.

Well fair point, but this has to be balanced up with the repurcusions that its all above board, is it?

A middle ground is do the gig, leave a invoice and tell the pub you will come round on Monday for payment. Goto the JC on Monday first thing and talk it through.

Vader

tobybowes

Have you not spoken to your adviser and said "What happens if I get a gig regarding my payment?"

I have, theyve said make sure you declare everything, which is what i was going to do.

Well fair point, but this has to be balanced up with the repurcusions that its all above board, is it?

As far as i know ive done everything right, its just the fact he now has a letter from the JobCentre which has shuck me up.

A middle ground is do the gig, leave a invoice and tell the pub you will come round on Monday for payment. Goto the JC on Monday first thing and talk it through.

This is a good point, probably the best reply of the thread, ill have a word with the landlord this afternoon before the event and see if this is alright with him (and i shouldn't see a problem with that).

Thank you feeling a bit calmer now

smartpicture

Just to add another thought, if you're self-employed then you deduct you expenses to arrive at your net income. So you should be deducting the cost of your petrol and any other direct costs from the £80, or £5 or whatever you charge (you can't deduct the £1000 as equipment is treated differently).

I would probably be inclined to say you'll do this gig for free as a practice run then check with your advisor on Monday.

paulwellerfan

if i were you and you really wanted to go ahead with it.
well do it.
get the bloke to sign you some sort of paper work to say you were paid only £5.00.
take that to the job centre with you on monday, then see what they say.
enjoy the gig....