How do you show self employed income to housing benefit?

Charityworker

I'm planning on going self employed soon doing childrens face painting and temporary tattoos at parties and events. I'm not expecting to earn a huge amount but I do know I have to declare everything to housing benefit. I'm just going to write my income and outgoings in a simple cash book. Is this enough to take to the housing benefit every week? I don't want to pay an accountant as I will be earning so little already. I already work part time for 16 hours a week and plan to start this small business so that we still qualify for working tax credits. Do they also need to see receipts of business expenses and do they base your housing benefit on profit or just on income?

BigAunty

Can't answer your specific question but do want to flag up that in the proposed move to the Universal Credit benefit system (if and when it ever happens), the self employed will be expected and treated for the means tested side of things as if they earn the National Minimum Wage - a much higher threshold than now where effectively the self employed are rewarded with tax credits for earning small sums.

UC is still at the proposal stage but the proposal paper does indicate that it will not operate in the same way that tax credits does now for those with low profits.

Does your business plan indicate when your self employment will be more self-supporting?

Charityworker

Oh well if that proposal comes forward I'm afraid I can't keep my head above water. I've done everything I can to help myself and my family during these benefit cuts. If they are bringing in all these rules I'm afraid I can't compete. A life of poverty awaits me and my poor children.

And to top it off I have got to have the day off tomorrow so I can look after my child who should be at school but isn't because of the strikes. And I don't even get a pension. Thanks very much.

Charityworker

Nobody got the answer to my question?

turkleton

Your council should have a self employed proforma. When you start as self employed you'd give approximately 13 weeks estimated accounts and then they'll probably contact you after 3 months and a year for actual figures. It's very likely that your council won't assess your self employed income every week as they'll use an average.

I believe the idea behind using NMW to assess self employed income is to prevent the abuse of self employed income by some individuals. The amount of people who work 50 hour weeks but make no money in my area is insane but as self employed income cannot be proven nothing can be done.

Please don't think for a minute that I'm saying you would lie I'm just trying to give you an insight into what the thinking may be.

Charityworker

I would never lie about my income. I've always declared every penny but I know a few who don't. I want to dig myself out of this benefit hole we are in but I need benefits for a while until I get a foot up. It seems like we will be about £70 a week worse off than we are now unless I find 8 hours a week extra work from somewhere. It seems so unfair that people working decent hours on a decent wage will be ok but anyone struggling on the minimum wage is going to b even worse off.

sunnyone

You are only intrested in " self employment " because you are only working 16 hours per week at present as the only working part of a fit and able couple which is all thats required at present and the rules change in April to make it 24 hours per week per fit and able couple, the numbers game (self employment/hours claimed worked = no profit) has stopped being the sure ticket it was as proved by the posts on this board recently so a few more hours per week at a paid job for either you or your husband would be a much easier thing to do and a much better bet for working tax credits post April.

Have a look at the up your income board for ideas to make up the hours, there are many diffrent ways to do it.

I hope you find a way to make it work for you, you or your husband might find full time employment soon or either of you might find 30+ per hours per week or any combination.

baza52

do you expect to work part time hours yet get the same money as someone who works full time?

Charityworker

I know a few more hours of employment would be much better for us but I'm afraid it's not being forthcoming. We are both applying for everything going. Therefore if no one will give us work I'll try making work for myself.

I've been doing face painting and temporary tattoos to help raise funds for the charity I work for for a while and the tattoos are really popular. I had a sudden brainwave that I could be doing this as a small business. I'm also going to be offering my services as a virtual secretary.

Charityworker

baza52 wrote: »

do you expect to work part time hours yet get the same money as someone who works full time?

No I would like to work full time and so would my husband but I'm afraid full time work has not been forthcoming. Thank you for your support.

krisskross

Charityworker wrote: »

No I would like to work full time and so would my husband but I'm afraid full time work has not been forthcoming. Thank you for your support.

why can't your husband look after your child so you don't have to take a day off?