The Gap between signing off JSA and claiming WTC

willmcc

Hi everyone,
new to the forum *hello!*

I am currently unemployed on JSA and Housing Benefit.
I do a lot of voluntary work videoing community events and theatre groups.

I am interested in declaring myself full time self-employed and charging for my services, and a number of colleagues have expressed support for me that if I were to do this they could begin to pay me for my work, as they have budgets set aside for this, but I would need to be declared self-employed.

I would like to be able to move off JSA and onto Working Tax Credit while retaining at least some housing benefit, as I estimate that my earnings would be less than 2k in this tax year if I were to start self-employment today. What's more I'm *pretty* sure I would qualify for WTC as I would be easily working over 30+ hours a week (I do currently, unpaid!) and I am over 25.

I am concerned however that signing off JSA will lead to a period of no JSA or housing benefit for up to 8 weeks, as I've heard it takes this long to get a Unique Tax Code and apply for Working Tax Credit.

I was wondering if you have any advice regarding this potential 8 week gap - are WTC and housing benefit back dateable to recoup this loss - or is there a grace period for JSA etc ??

I have asked repeatedly at my Jobs & Benefits office, Citizens Advice bureau, even my local councillor, and with the Housing Benefit association - they, unfortunately, are all not able to give answers!!

Many thanks

Jowo_2

willmcc wrote: »

... I estimate that my earnings would be less than 2k in this tax year if I were to start self-employment today.

What does your business plan indicate your turnover will be two years from now? Will it be 10k plus?

The proposal paper for the Universal Credit system being introduced in 2013 indicates that the self employed will be treated as if they earn the NMW for the hours they claim.

Therefore there will be a much higher threshold, a notional salary, to claim means tested benefits for the self employed in the future. The SE will be eligible for much less in terms of state support than they do now if the plans are implemented as proposed.

willmcc

thanks for your response - I'm estimating well under £10k each year for the next few years, taking into account deductibles which will be pretty big in the first few years

This still doesn't adress the issue of this 8 week gap though - or are you advising don't become self-employed!?

diable

Are you not allowed to work 16 hours per week before it affecting your benefits?

willmcc

well yes you are, but that's not the issue.
The issue is I want to move off one benefit (JSA) onto another (Working Tax Credit) but I can't afford 8 weeks without benefit - does anyone know if either Jobs & Benefits or HMC offer a grace period or anything equivalent? 8 weeks with no or low income is a long time.

karenx

No run on of JSA, as soon as you sign of thats it. And you cant try claim WTC while being on JSA. So you just need to sign off then apply for WTC once you have applied to be self employed. And it could take a while for WTC to come through as they need to do checks etc. You could alwys apply for a crisis loan
Im amazed that you were allowed to claim JSA while doing 30 hours of work per week, all be it it was unpaid.

willmcc

Can I put in my claim for Working Tax Credit without my UTR number to shorten the gap?

Jowo_2

How long have you been claiming JSA?

willmcc

Come 20th April, one year

Jowo_2

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Employedorlookingforwork/DG_10013908

Help with housing costs

If you were getting help with your housing costs while you were out of work, you may carry on getting this. This is if you have claimed one of the following benefits for at least 26 weeks continuously before starting work:

• income-based Jobseeker's Allowance
• income-related Employment and Support Allowance
• Income Support

You may then continue to get the following benefits for up to four weeks:

• Extended Payment of Housing Benefit
• Extended Payment of Council Tax Benefit
• Mortgage Interest Run On

**********

Also, if the local council has not processed your claim for HB after 2 weeks of submitting it, and you have provided all the necessary information with the claim, you can request an interim housing benefit payment.

http://edinburghagainstpoverty.org.uk/node/4

willmcc

Jowo, this would be a huge help. I assume it's one of those things you would need to 'remind' your local housing association about - much like the £100 job credit

It should be worth mentioning at this point that I'm in Belfast - but the same laws will apply to N. Ireland.

One more question everyone - how soon after declaring myself Self-assessed/SE will I have to notify my Jobs & Benefits office? I've always assumed immediately, but I've also heard 3 days or even 3 weeks!!?? Could someone clarify?