Disability Benefits/Tax Credits when Self Employed

barrow_matt

Hi everyone,

I have a fairly serious anxiety problem which i've kept to myself for over 20 years. Last year after a few difficult situations I decided to leave my very good job and become self employed. I had savings to top up my income and ensure the mortgage was paid and all other bills. I did get some medical tests on the physical effects of my anxiety but probably didn't stress enough to the doctor that it really is an anxiety problem rather than a physical one.

A year on my pot of money has run out and i'm not yet making enough to cover my bills, in fact i'm earning very little.

I definitely want to stick with self employment as I am a skilled professional who is capable of working from home, it's just i'm not really able to work in external environments. Now I no longer have any savings I need to consider if I am entitled to claim any kind of support from the system i've paid into for 10 years.

At the moment I am receiving no medical treatment and I realise this has made my condition worse so I am going to see the doctor as soon as possible to try some kind of therapy started.

Does anybody know about Disability Benefit and Tax Credits for the Self Employed, I have no fixed income and no PAYE but could work out my average earnings from my accounts.

I know the forum gives some great advice but is there anywhere else I could get some personal advice, are CAB any good for this kind of thing, anywhere else?

Indie_Kid

How old are you? Do you have any children? How many hours do you work? Due to your health problems, do you have any care and .or mobility needs?

barrow_matt

Hi,

I am 29, I live with my partner and her 2 children, I don't have any children of my own. She works part time, earns around £6.50/hr

I work all day everyday in terms of trying to get work but in terms of time spent doing paid tasks very few hours at the moment which is the problem. A lot of time is spent on research/reading/learning.

I have no care or mobility requirements.

Doing some more research I believe I would be eligible for Incapacity Benefit, I would score 16 on the Personal Assessment. I do not believe I would be eligible for DLA as that seems to be Mobility/Care orientated.

Would I have to say that I only worked 16 hours though, which is true if reading and learning isn't classed as 'work'. If I was doing 'paid client work' for 16 hours/week then I would be earning enough. This is where I get confused with self employment and hours worked.

Just looking at Disability Working Tax Credits for those working over 16 hours / week but you need to claim some other kind of disability benefit which I then wouldn't be entitled to?

At the moment my income works out less than £95/week and my paid work is less than 16 hours.

My partner already receives Working & Child Tax Credits and we need to review this as she hasn't changed anything to my knowledge since my circumstances changed so the household income is much lower.

Indie_Kid

IB doesn't exist any more for new claims.

barrow_matt

What is the new one, is it ESA?

Looking at DLA I may get lowest rate care on the basis of difficultly moving around outdoors due to physical/mental illness, this is what is stopping me from being in employment.

Indie_Kid

Yes, the new on is ESA. ESA is much harder to get.

Brassedoff

Sorry if you take offence, but how do you think you qualify? If your Doctor says you have an illness then maybe you might get ESA if you were not really working. I assume you have already looked at JSA and don't qualify? There are around 2.5 million self employed or sole traders who are quite anxious at present too.

Quick question. If your self employment was earning you £1000 a week, nett, would you be considering the claim? Not making as much as you expected when self employed is one of the downsides of doing it. I have had good years and bad as a self employed person, it goes with the turf. I expect you have a good accountant for your write-downs etc?

Don't get me wrong, I am only asking the question. The benefit system is not a safety net for being self employed. If your main activity does not make enough, you are either not marketing your service well enough, there is insufficient market, or your ROI is wrong. What about taking up another income stream activity if you only do 16 hours a week? The reading and research is still classed as working.

Sorry if my reply is not the one you wish to hear, but on the face of it, your problem may be down to the failing business. I speak from experience.

dmg24

If you are able to work all day everyday you will not qualify for ESA.

barrow_matt

No offence taken, all views welcome.

Basically I am able to work from home, I am not able to travel or handle work in most other environments due to a Continence/Anxiety issue. As i'm sure you'll appreciate one triggers the other.

I could give up and say I can't work, it's all too stressful but I don't want to go down that route. I think I can work my way out of this and make a decent income from remote freelance work but it takes time. What i'm looking for is to see if there are any support options open to me due to my condition.

I want to work! I am going back to the doctors to see if I can start something to try and get past the Anxiety as that is the real problem.

I have completed the applications for ESA and DLA this afternoon so will just see what happens, you can only ask.

Indie_Kid

barrow_matt wrote: »

No offence taken, all views welcome.

Basically I am able to work from home, I am not able to travel or handle work in most other environments due to a Continence/Anxiety issue.

Why apply for ESA then? There are many jobs that can be done from home.

barrow_matt

sh1305 wrote: »

Why apply for ESA then? There are many jobs that can be done from home.

I applied for ESA on the basis that my illness/disability restricts my ability to get a job. I'll see during the phone call if my freelance work is classed as permitted work or not.

To be honest it is more of a backup as if I can't earn more than £95/week in the next couple of months i'll be in trouble anyway!