Ask the CCCS a benefits question

Mrsl82

Hi
Myself,husband 2yr old & 7week old currently live with my parents in their 3 bed house. We do own a one bed flat but had to move out as obviously it was too small. We barely fitted one cot in the bedroom let alone 2! We now rent out our flat but at a loss of £240 a month against our mortgage so it still costs us money every month. Are we eligible for council housing or housing benefit even though we own our own property? We can't afford to rent or buy as no deposit & currently would make a £20k min loss on our flat if sold it. Feel stuck & not sure what our options are...council are very vague & not been any help!!
Thanks

StepChange_Pavan

ebentall wrote: »

Hi there,

My wife has recently decided to go self-employed. She's not registered as such, and it is only going to be sole-trader. However, she hasn't made any money yet (for the last 4 months!) and my income (£20k) doesn't cover our outgoings. Thankfully we have savings we're relying on at the moment, but they won't last forever.

Are there benefits/tax credits available for us? Or does my wife have to give up the self-employed thing and go onto JSA to get any money?

Thanks for your help!

Ebentall

Hi Ebentall and thanks for your question.

This depends on the amount of savings you have. For example if you have more than £16k then you will not qualify for any benefits (unless one of you is over pension age).

If your savings are under this figure, then the benefits will be assessed on your income and the amount of savings you have. It will also depend on:
1. whether you live in rented or mortgaged accommodation.
2. If you have any children
3. If you are living in rented accommodation the amount and who it is rented from eg local authority or private
4. The amount of Council Tax you pay

If you can provide us with this information we can give you some more detailed advice.

Kind regards,
Pavan

StepChange_Pavan

urnoboss wrote: »

Hi there, Im about to be made redundant from my work. Ive been there nearly 4 years and will therefore not receive a significant redundancy payment. What benefits can I claim? I have a mortgage and 1 child of 2 years. My wife works but only earns approx £26k per year. Many thanks.

ps any information on whether we can claim child tax credits also appreciated.

Hi urnoboss and thanks for your question

From the information provided we have assumed that National Insurance contributions would be up to date and so you should be eligible for Contribution Based Job Seekers Allowance.

If you are over 25, this would be paid at a rate of £67.50 per week for 26 weeks. If you’re under 25 this would be £53.45 per week.

You will need to contact the Job Centre plus on 0800 055 6688.

Based on your wife's income of £26,000 you may also qualify for some Child Tax Credits. However, this would be dependant on your earnings for the last tax year. If the combined income for last year tax was below £41,000 then you may be eligible for a small amount of Child Tax Credits.

The contact number to make a claim is 0845 3003900.

Unfortunately because of your wife's earnings you won't be eligible for any help towards the mortgage.

I hope this helps,
Pavan

StepChange_Pavan

54druids wrote: »

Am self employed and have in the past put a stack of money into the business. Times are really tough at the moment and we are barely getting a wage. What we do get normally is a salary and dividend but there is no profit so no dividend. At the moment if we do get paid at all we are getting paid out of our directors loan account. Are we entitled to tax credits. Our accountant seems to think we are but hasn't been much more helpful than that

Hi 54 druids and thanks for your question.

The rules around how director's income is treated for Tax Credits claims are very complex.

HMRC will be able to discuss this with you on their Tax Credits Helpline - 0845 300 3900 or go to www.hmrc.gov.uk.

Kind regards,
Pavan

NannieG_2

3 weeks ago I was made redundant and out of work for first time in my life (I'm 55). I have done all the signing on, am keeping my booklet up to date and have applied for jobs, without success so far. I have a health condition which flares up from time to time, it is currently giving me problems and I have been to the Doctor and he has given a sick note for 2 weeks. This is a bit of a "what if" question - if my condition doesnt improve or worsens and I have to go over 14 days the job centre told me I would stop getting JSA and have to sign up for ESA. I've looked on their website to see how much this would be and it only gives figures for a "single person". I do have partner who is self-employed but his income varies so much from week to week we have always lived on my income. Does the fact that it doesn't mention anything other than a single person mean that I wouldn't be entitled to anything? I dont want to cause myself further stress by worrying about what's going to happen in 2 weeks time if I'm not better by then. Could you put my mind at rest, or if not, tell me the worst! Many thanks

nicholaslines

In November my wife and are expecting our first child. We have been married for 3 years. My wife finished a degree in June and as she is six months pregnant is now not working, nor has she been whilst she has been studying at university.

I am employed full time earning £28600 a year.

We are both extremely confused at what help (child benefit, tax credits, council tax benefit etc) we are entitled too and need help?!

StepChange_Pavan

LittleMoo wrote: »

I have started working in a self-employed capacity teaching craft classes. I know I have to declare this when re-applying for benefit but I'm not sure what is classed as my income. Is it the money I take in from the classes (regardless of what i have to pay out in materials and hall hire) or am I only classed as receiving an income once I am in profit?

As an example, my outgoings so far have been around £400 and my incomings(?) is about £175.

Hi LittleMoo and thanks for your question.

Net profit is used when assessing benefits for claimants who are self employed.

In very simple terms net profit is classed as earnings minus business expenses, Tax and National Insurance contributions. The Revenues self assessment helpline on 0845 9000444 should be able to provide further advice on what is classed as a business expense.

From the figures you’ve quoted, the business is running at a loss so your income for benefits purposes would classed as zero.

I hope this helps,
Pavan

StepChange_Pavan

sock-knitter wrote: »

can they give me benefits advice on behalf of my twin sons, they are 16, just left school, just moved into supported housing, due to start college in september.
both receive dla hrc lrm, are they entitled to income support? i rang job centre and they told me to carry on claiming tax credits for them, tax credits confirmed this
to be honest i would rather they had there own money, than me juggling three households and its seems wrong to claim benefits for young people who know long live with me, i currently get carers allowance for them also
thanks

Hi sock-knitter and thanks for your question.

Your sons are unlikely to be entitled to Income Support, as they are under 18 and are not estranged from you. Fewer people are now entitled to claim Income Support than in previous years as the qualifying criteria have changed.

They might be able to claim the equivalent benefit from Jobcentre Plus for those who are unable to work due to ill health - Employment and Support Allowance (ESA) - which can be paid to those in education if they receive Disability Living Allowance. Assuming they have no other income, this will equate to a Personal Allowance of £53.45 plus Enhanced Disability Premium of £14.05 = Total £67.50 per week each.

However, if your sons were to claim ESA, then they would cease to be "qualifying young people" and so your Child Tax Credit and Child Benefit claims would end, and Jobcentre Plus and the Tax Credits Office will have taken this into account when making their recommendation to you.

I hope this helps,
Pavan

pebe01

I am currently self employed and claiming no state benefits at all. My wife and I are expecting our first child in December and as I will be the only member of the household working full time I am keen to find out whether I or we are entitled to any support. My wife is a teacher and will be on a reduced income for some time until she returns to work part time next year. Thank you.

DX2

CCCS_Pavan wrote: »

However, if your sons were to claim ESA, then they would cease to be "qualifying young people" and so your Child Tax Credit and Child Benefit claims would end, and Jobcentre Plus and the Tax Credits Office will have taken this into account when making their recommendation to you.

I hope this helps,
Pavan

Surely CB and CTC ends as the children no longer reside with the parent?