JSA to Self Employment. Tax credits and other benefits?

ArtNut

Hi Guys, just signed on. Hope you're all well.

I am currently claiming income based JSA with housing benefit. I have been doing so for nearly 19 months. I'm 27, single, live in a house share with two flatmates, no kids, no savings.

I have an opportunity to become employed full time but the boss wants me to be self employed. I've been self employed before and know how to go about that, but I'm not sure how the benefits work out. Will I still get working tax credits somehow, housing benefit extention, back to work bonus and any other incentives the jobcentre have mentioned before in relation to being on a contract with PAYE.

If anyone could shed some light on this and let me know if it may be worth it that would be great.

Thanks for reading my post, look forward to hearing from you.

Best, AN.

MrsManda

You can get WTC if you're self employed providing you work 30 hours or more a week
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCreditsandChildBenefit/TaxCredits/Gettingstarted/whoqualifies/WorkingTaxCreditthebasics/DG_172728

As you've been claiming JSA for more than 13 weeks you may get Self employment credit:
http://www.direct.gov.uk/en/Employment/Jobseekers/LookingForWork/DG_173931

jetplane

The self employment credit has to be claimed quicky (within 5 weeks) and runs for 16 weeks, it is ignored as income for means tested benefits.

The 30 hours a week for working tax credit includes doing your books and pricing jobs / research / stocking up etc.


You can still receive Housing and Council Tax benefit (including 4 week run on). Housing benefit will need details of turnover and expenses and will pay on your actual income which can be very low especially in the first year of self employment.