Splitting up help - income support and/or spousal support?

karenx

Whats there not to know?? Its all about your situation and circumstances.
As the mortgage is in both names you will only get half the interest paid and you will have to pay the rest yourself.

DX2

RAS wrote: »

You might get working tax credit, you might get SMI (yes it covers the interest on mortgage payments), if your child goes to child care, you might get CTC. You will get CT single person reduction, you might get CT benefit.

To clarify the OP won't get SMI if she works.

SMI – what it is and who can get it

You may get help with mortgage interest payments as part of your benefits, if you are a homeowner and are getting:

• Income Support
• income-based Jobseeker’s Allowance
• income-related Employment and Support Allowance
• Pension Credit

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

emsywoo123

DX2 wrote: »

To clarify the OP won't get SMI if she works.

SMI – what it is and who can get it

You may get help with mortgage interest payments as part of your benefits, if you are a homeowner and are getting:

• Income Support
• income-based Jobseeker’s Allowance
• income-related Employment and Support Allowance
• Pension Credit

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

Admit I have very little knowledge of benefits, but wouldn't she get IS if working less than 16 hours a week? And making little profit? And so would get SMI?

DX2

emsywoo123 wrote: »

Admit I have very little knowledge of benefits, but wouldn't she get IS if working less than 16 hours a week? And making little profit? And so would get SMI?

It's not so much the working under 16 hours per week it's the amount of money she earns, she could be paid £10 per hour and if she only worked 15 hours a week she would be well over the IS threshold.

From what I gather if she works she will only get to keep the first £20 of wages without it affecting her IS, then after that they deduct £1 for £1, so if she earned £40 one week they would only deduct £20 from her IS and she would still be entitled to her SMI as she would still be getting her IS.

I think the point I was trying to make in my previous post was someone mentioning WTC in the same sentence as SMI, and I was trying to point out that you can't work, claim WTC and get SMI.

Of course I could just have confused the whole thread now.

BoBoDobie

I was going to start a new thread but I think it may be better if I come back to this if I may, and forgetting the spousal support, this month being self employed I've earned £700. So that's taken me way over the IS limits. Time wise I'd say I'm working just under 16 hours a week but I could stretch it to work over 16 hours if it's going to make me better off - I'm not sure if it is or not? Working under makes me liable for IS (but then again I've earned £700) so maybe not. So if I worked over 16 hours and earned £700 a month what, if any, help would I get? WTC? How much would that be?

£700 wouldn't even cover the bills.

Sorry, I just find this benefits thing so confusing and being self employed just seems to make it more complicated to my mind. Also being self employed, next month may not be £700, it could be half that. I've no idea how much tax I'll be liable to pay at the end of the year too. How do they work it out being self employed and being on benefits when the numbers can vary so much?

karenx

With tax credits you estimate what you think you will earn in the year and give that figure. I would advise putting money aside each month to cover any tax bills at the end of the year also.

BoBoDobie

Thanks Karen. What if I earn way more/less? Do I have to pay some back or get the deficient paid if its underestimated. Being a new business I am concerned as it's too early to tell how its going to do (and is slightly seasonal so may tailor off in the winter months.)

Does anyone know which I'd be better off getting IS (and presumably SMI, Council Tax paid) or earning £700 a month and WTC?

karenx

Well if you claimed the SMI and IS you would only get half of the interest paid on the origional house price. So any additional amounts added to the mortgage wont count. So you will still have all that still to pay. Plus as you are earning £700 you might get nil income support or they will say your not entitled. I think it would be best working as much hours as possible and claiming WTC and then you know you are paying the mortgage yourself instead of having to rely on benefits to pay it

BoBoDobie

Thanks Karen. I didn't know that the interest would only be half until this thread - the CAB never said that in either meeting I went to. There are no additional amounts on the mortgage.

Also the £700 although earned I've not been able to 'draw' it as with any new business I've had to reinvest it to buy more stock. I'm not sure how long before I can actually draw an income from it. So does the £700 still count as income as I've had to use it to buy more stock?

"I think it would be best working as much hours as possible and claiming WTC and then you know you are paying the mortgage yourself instead of having to rely on benefits to pay it" but that worries me because as I'm a retailer, the hours I work doesn't necessarily relate to income unfortunately (not like if I were dress making or book keeping for example and the more hours I worked would have a direct correlation with the income). As it stands £700 wouldn't be enough to pay the mortgage and bills let alone live off. It just wouldn't be enough. The bills alone for mortgage, utilities etc are £1000 and thats before food and other living expenses.

How can I work out what WTC I'd get onto of the £700?

Mojisola

Tye_Bo wrote: »

Also the £700 although earned I've not been able to 'draw' it as with any new business I've had to reinvest it to buy more stock. I'm not sure how long before I can actually draw an income from it. So does the £700 still count as income as I've had to use it to buy more stock?

I think you're mixing up the income of your business with your wages from the business. If the business has had a turn-over of £700 this month but that has been swallowed up in costs, then you haven't earned anything.