How would the benefits work if I was self employed irregular hours?

Hannah_10

At the moment I get Income Support (inc. severe disablement premium), HB and CTB as I am unwell long-term. (I get DLA too but that wouldn't be affected by working.)

Two different ideas have come up though, both of which look possible.

Idea One would be working for a local business who know me on an as-needed basis and I would be technically self-employed. The huge advantage to this is that I could work when I was having a good day and not when I wasn't. Realistically I'd be working up to a maximum of 2 days a week (14 hours or so after breaks are taken out) and earning about £6 an hour (£84 tops then). As my income support is more than this I would still need to be on benefit pending an improvement in my condition. There may well also be long periods where I can not go to work at all.

How would it work with benefits if I did that? Would they pay me variable amounts according to what work I did or did not do that week? Would I have to declare my earnings regularly in some way?

Idea Two is a bit different. I recently took a business course at college, there is a local shop which is failing and I think he's getting ready to sell out at a very small figure for stock only. The landlord would be happy to change the let to me on the same terms/rent. I think I know exactly why it's failing and how to turn it round but if I were to take it on I would have to give it a year or so to pick up (seasonal economy) and I would have to have a member of staff in when I can't be. This means for about the first year I will be making a loss or next to nothing, but after that I should have a future career for as long as I like, on my own terms and the capital to get started is minimal.

How would that scenario work with state benefits? I would still need support because I wouldn't be making money at first but after about a year I ought to be standing on my own two feet so to speak and in work properly/long term.

They are both ideas rather than firmly open avenues so far as they both depend on what someone else does next so it seems better to make initial enquiries here for now and save speaking to the benefits agency until I am more sure what is and isn't going to be available.

tcr_3

Scenario 1 comes under "permitted work" i.e. you'll have to establish with the Incapacity Benefit office whether your employment comes under the permitted work regime (because, in very general terms, you're not really supposed to be working & claiming sick at the same time). And I'm assuming your claim to Incapacity Benefit is your condition of entitlement for Income Support, even though you might not be getting paid Incapacity Benefit, right ?
Income Support will stop altogether if you're working, on average, 16 hrs per week or more. If you're working under 16 hrs per week they'll consider how much your wages are, apply the disregard and take the balance into account in the week in which it's paid. They'll attribute the wages over the period you earned them i.e. if you started work on 1st august and got paid on 31st august, they'll adjust your Income Support for one month from the benefit week which includes the 31st august.
If your employment pattern is settled, they can average your earnings out. If not, you'll have to tell them each time you get paid and they'll have to do a calculation each time (which is a bit of a nightmare, it can lead to your benefits being delayed).

Scenario 2. I'd suspect you'd be classed as running a business and as being in remunerative work, in which case your Income Support will stop altogether.

Hannah_10

Yes, I think I get some sort of notional Incapacity Benefit credits which don't result in me being paid anything but mean that I am able to claim Income Support. Thanks for explaining.

With the second situation, might there be any other benefits I could be eligable for instead of income support?

Duncombe

WTC if you work more than 30 hours a week. But is trying to save a failing business really such a good idea if your ill health often means you are unable to work?