Housing Benefit for home owners

asu1z

Oldernotwiser wrote: »

Why do you earn so little, working as an accountant?

Dear oldnotwiser, bestpud, trixe, Wee willy harris...

Before starting my own business....I remained employed for last 4 years and eventually decided to start my own accounts and book keeping services. I am just the starter and new in business that is why I earn less. The business rents, rates, advertising costs and other expenses are too much and I end up not saving much for myself for last year or so. For the first year, I went in loss and it is just this second year when I broke even.

Hope this clarifies your doubts.

My post is quite general about inquring government rules on housing benefits for someone owning a flat. And everybody has the right to have the right information, so whats wrong with it?

asu1z

seven-day-weekend wrote: »

You will not, AFAIK, be able to claim help with rent on one flat whilst collecting rent from another (even if it only covers your mortgage).

Thanks a lot. Your answer clarifies my doubts.

Wee_Willy_Harris

asu1z wrote: »

My post is quite general about inquring government rules on housing benefits for someone owning a flat. And everybody has the right to have the right information, so whats wrong with it?

Fair comment. And, in reply, the Housing Benefit system is not designed to enable claimants to use public funds to subsidise their aspirations towards a property empire, however modest.

If you sell the flat, (which is why I asked) on the open market at a fair and honest price, you may be able to claim some assistance with subsequent rent on a property to suit your needs.

asu1z

Wee_Willy_Harris wrote: »

Why don't you just sell the flat?

Yes, may be that is one of the options.
I have only taken interest only mortage. Because owning the flat is costing me money and prices are also not going up so what is the point in retaining it. I also need to see the oportunity cost.

asu1z

Prudent wrote: »

You get £900 a month from the taxpayer because one of you only works part time and the other doesn't work at all and you still want more? I am a single mum and manage to work full time in a demanding job with an auto- immune disease. Why can't both just work more hours?

I am working full time and my partner is looking after the kids as they are very young.

MissMoneypenny

LizzieS wrote: »

You can sell your house and rent (probably be a private landlord) as long as the council agrees your need.

And as long as you mortgage lender gives their permission to allow you to rent the flat.

As a landlord, how will you manage to pay for repairs, like a new boiler? How will you manage to pay the mortgage when you have a void? Or when the mortgage rate goes up?

No one knows if your very generous benefits will continue: how will you cope then if you are only managing to find a few hours of work now?

Can you do your self employed work in the evenings and find a job to support your family?

Oldernotwiser

MissMoneypenny wrote: »

No one knows if your very generous benefits will continue: how will you cope then if you are only managing to find a few hours of work now?

The OP says that he's working full time!

Barneysmom

Looks like the op wants the benefit system to pay for his flat!

Wee_Willy_Harris

Barneysmom wrote: »

Looks like the op wants the benefit system to pay for his flat!

Well, in all fairness, sometimes the logic of the benefits systen does appear to defy.... um.... logic?

andyandflo

Hi, just a few comments. business premises are rented, have you not thought about using the flat for the business instead of renting property elsewhere? As you know and should know, that the 'expense' of the upkeep of the flat would then become an 'expense' of the business. You would have of course have to have agreement from your mortgage provider. Council Tax ummm, business rates - yes maybe a problem but something that could be discussed with them. Don't confuse profit with drawings (wage). You can have a good 'wage' yet incur a 'loss'. Losses are good in the first few years - they can be rolled back against taxed income in earlier years when you were employed, thus giving you some healthy tax repayments.
Although you say it is only a small start up, I do hope that you have told HMRC - Tac Credits that you work for more than 30 hours pw! All of the time spent looking for business, planning, telephoning, admin work - indeed anything to do with the business is treated as working time.
Don't forget your wife's wages! As long as she is working for you in any capacity the charge can be used to increase the losses even more.
Think along the lines of one bed flat used as office + where do we live? Use lateral thinking - and ask advice from any other accountant you may know. It may be that he/she has some other ideas.