WTC HB Start Up Business Problem

monkey74

I am self employed on low income, in receipt of WTC and HB. I made a mistake on last years (08/09) Tax Return which I have told HMRC and WTC departments about. I reported my income as £338, I have now amended it to £1495.

On my start up business course I was given the following chart, which is still correct.




I started work half way through the year. Prior to that I was on JSA. Originally I had an income of £794 from JSA and £338 from work in 08/09.

Was my gross pay £1132 (£338+£794) or just £338?

I ask because, although either amount would have given me full housing benefit, with my increased declared income, if I include the JSA it means my new gross pay is £2289, equating to £44 a week, which according to the chart, reduces my HB and means I will have to pay several hundred pounds back to them, whereas if my new gross pay is £1495 I am still elligible for the full HB.

I know I could ask them, but I would prefer an answer from you guys first, thanks.

karenx

Housing benefit goes on what you are earning now per month. So if it keeps changing then you will need to send them profit/loss accounts on a monthly basis so they can work out your award.
Its not like tax credits where it goes on yearly income, so if one month you actually made £1000 your entitlement to HB would probably be nil. But the next month you could only make £100 and you could be entitled to the full award for that month.
Always best to keep them up to date if your income keeps changing that way if they suddenly ask you the past 6 months accounts you could end up with an overpayment if you have earned more than what you have previously told them.

monkey74

karenx wrote: »

Housing benefit goes on what you are earning now per month. So if it keeps changing then you will need to send them profit/loss accounts on a monthly basis so they can work out your award.
Its not like tax credits where it goes on yearly income, so if one month you actually made £1000 your entitlement to HB would probably be nil. But the next month you could only make £100 and you could be entitled to the full award for that month.
Always best to keep them up to date if your income keeps changing that way if they suddenly ask you the past 6 months accounts you could end up with an overpayment if you have earned more than what you have previously told them.

Thanks for that, but it doesn't help as my authority only asks me for my self employed book-keeping details once a year, so I assume they take an average. I am very glad it isn't once a month, I have enough to do!

Jowo_2

Your self employed income is £28 per week? Or did you start up towards the end of the financial year so it's much higher?