Benefits/Self employment

oujipickle

Hi, I am wanting to start a home based web design business. I am not currently working and i am receiving income based job seekers and housing benefit.

What i want to know is can i start up and still claim these as it will be very difficult at first waiting for the phone to ring, and only working 16 hours per week until the business can support me coming off benefits ?

Thanks in advance

ouji

bexmark_2

There should be nothing to stop you starting up a business. Talk to the JCPlus advisor about any help that the DWP can offer for the transition period and make sure that when you sign off, you ask about the Housing Benefit Run On. It pays your rent and/or Council Tax for the first 4 weeks after signing off as though you were still in receipt of JSA(IB).
The local authority should accept that you are going self-employed, with a projection of your income, probably for the first three months. There should not be any problem with stating that while you build up the business, etc, then there may well be more expense than income, so to treat you on a nil income calculation. They will probably look to review your circumstances after 3 months. There are no hard and fast rules for this, just best practice. Keep a decent record of your money; a decent cash book showing income and expenses, with supporting invoices, etc is fine. At this stage, they won't insist on anything like full proper accounts for at least the first year; just clear records that show your earnings.
As Housing Benefit is means-tested, it will decrease as your earnings improve. It's not the case, as many think, that once you start work, it stops.
Best advice is to talk to the DWP and the local authority to see what help they can offer.
Good luck

oujipickle

Thanks, I just thought that if people can work up to 16 hrs for an employer and still claim all benefits, then why cant i start self employment and work and declare 16hrs while the business is new and very unstable. Then when the business is looking after itself i can go full time.

Can anyone see why this would not be possible ?

Cheers

ouji

mowerman2

Your status as employed or self employed is not relevant. You will be entitled to benefit providing you continue to meet the qualifying criteria and notify the authorities when your circumstances change. From personal experience the only difficulty you may face is the authorities interpretation of when "circumstances change" and you actually have 'earnings/money coming in'. In self employment this can be subjective and interpretation differ between DWP and your LA.
Is it:
The date you carry out the work?
The date you invoice the client?
The date payment is due, or
The date payment is actually received ?
I would suggest you keep precise records to include all of the above and submit your figures monthly. Bear in mind that certain expenditure that is allowable for tax purposes may not be allowable by DWP/LA when calculating your deductable costs. Advertising and marketing expenditure is a prime example.

ali82

You can claim Self Employment Credit for 16 weeks after sihning off of Job Seekers Allowance if you have been on it for 6 months or more