Help for the Self Employed

steadg

Hi all
Writing on behalf of my sister who is in a bit of mess cash wise. Her hubby is self employed and hasn't worked for 5 weeks due to the weather, then his van blew up so he can't get to any jobs anyway. As his business was making losses and they always struggled for cash he went up to see what benefits he was entitled too. My sis is a nurse and works 2 days a week - but only gets £517pcm take home. They have 4 kids. Hubby went to the benefits office and was told as he is class 2? and hasn't paid NI so he is not entitled to a penny. Sis has been told she has to claim and has been told that she will get an extra £200 per week for the adults and kids. She is not sure if that includes her hubby and if it does whether the claim will be reduced. No one seems to give them a clear answer and shes at her wits end.

The housing association that took over her council house has today started eviction proceeding as she is one month late with rent. Ridiculous I know, I have told her not to worry about this but thats easier said than done.

Question I have is it correct that her hubby cannot claim anything? All they have said to him is that they will pay his stamp from now, but as far as they are concerned he effectively does not exist.

Also as my sister works (and incidentally is working to an IVA) is she entitled to benefits.

Poor guys have rent being chased and council tax, but she has managed to pay the bills out of her last salary. We had to buy them food this week otherwise the kids would not have been able to eat. Surely that can't be right?

Any help or advice much appreciated.

TA

Steadg

Vixie_Pixie

they can claim Housing and Council tax benefit to cover their rent and ctax.

with SE claims the LA tend to use accounts for the last tax year so 08/09 but if he can provide proof of what he has earned so far this year with receipts they can work it out of 09/10 using the lower income (due to no work) in the assessment of his claim.

with 4 children the amount the government says they can live on is fairly high per week, so even if they are not entitled to full benefit they may be entitled to a bit.

Tell them to make a claim and get the LA to contact the housing association to hold off eviction proceedings.

Btw have the HA given them a Section 21 notice?

karenx

Self employed people only pay class 2 NI which isnt enough to cover for JSA etc, he would of needed to be paying more.
I dont understand the part about her working but being able to claim JSA and getting an extra £200 a week?? I think you have yourself mixed up. She cant claim JSA as she works. And even if she was claiming JSA its not £200 a week its £100 for a couple

DX2

Do they get tax credits? Have they informed tax credits of the current situation?

steadg

Thanks both.

Never mentioned JSA been told she can claim tax credits. I'm only going by what she is telling me which is through sobs and tears but its the fact the hubby cant claim that is causing concern. Poor lads having a nightmare.

She has nothing now - but the forms are on their way (could take up to 10 days) they are backdating payments to the middle of December - but she is three - four weeks off being paid anything and salary not due till end of Februaty. She has been told she should have claimed months ago.

No S21 notice yet but she is told one is on its way.

She spoke to Housing Benefits people today but again they said help is a few weeks away as she has more forms to complete.

I just cant believe her hubby who has worked all his life and for himself for the last two years is not entitled to anything!

DX2

Are you telling me she doesn't get child tax credits either?

The biggest flaw that people find with being self employed is when it comes to claiming benefits, they havn't paid nough stamp.

steadg

I think that is what she is now claiming in her name but its the fact she has nothing now that is causing the problem and any form of payment is a while away.

karenx

If he had looked into class 2 when going self employed he would of known it wasnt enough credits for JSA etc.
Housing benefit wont be backdated but tax credits will.
They dont have a tax credits claim at all? Dont think it will be as much as £200 a week though. Try input her details into entitledto but remember put as husband earning zero.

karenx

steadg wrote: »

I think that is what she is now claiming in her name but its the fact she has nothing now that is causing the problem and any form of payment is a while away.

It will have to be a joint claim as they are a couple

DX2

steadg wrote: »

I think that is what she is now claiming in her name but its the fact she has nothing now that is causing the problem and any form of payment is a while away.

She can claim child tax credits and working tax credits two seperate credits but on the same form, if that makes sense.
HMRC forms do take approx 10 days for them to come out.
I'm thinking maybe a crisis loan to tide her over.

steadg

Thanks - dont think they ever envisaged not working so to be fair to them they wouldn't even have considered NI. He had a poor accountant which is being dealt with!