Going self empolyed whilst living at parents. Will it affect their income?

loungeroom

Hi everyone.

I'm thinking about going self employed with a small business buying and selling on eBay from various places - auction houses/car boots and the like. I am currently claiming jobseekers allowence income based and my parents are both jointly claiming Pension Credit.

If I did decide to use my parents home as business premises, and took the plunge to self employment would my earnings from this affect my parents benefit? I have tried to contact the Pension Service but they were unsure and basiclly said I would have to do it to find out if they would be affected.

I would be most likely earning 6000 - 10000 profit per annum and also claiming working tax credits as I would be doing over 30 hours per week.

If any more information is needed please ask as I would love to do it asap if possible.

Thanks for your time

Notmyrealname

loungeroom wrote: »

I would be most likely earning 6000 - 10000 profit per annum

I like your optimism however misplaced it is.

KiKi

To answer your question: AFAIK, no, what you earn doesn't affect your parents' income. However, using their house as a business premise may - it may impact council tax, use of the house etc.

Look at the HMRC webpage on 'self employment' as it details the different things you need to consider. http://www.hmrc.gov.uk/selfemployed/

Don't forget to register as self-employed as soon as you start trading.

KiKi

BobQ

Do you mean Pensions Guaranteed Income Credit or Savings Credit?

Assuming you mean Income credit then most types of income could affect their pension credit. Not sure how your arrangement would be viewed by DWP - I suspect you need to ask them based on some concrete assumptions. Presumably you will be paying your parents for the use of the premises for running a business? Are we talking about one room or half the house? This may be regarded as sub-letting but they may not count any payments as income from a relative.

Have you considered the impact of running a business on their Council Tax, House Insurance, Electricity, Gas, Water?

elfen

Also, as it's their house too and there will be deliveries etc, have you asked them if they mind you doing it?

loungeroom

Notmyrealname wrote: »

I like your optimism however misplaced it is.

Is that an attempt at being sarcastic, or you just being a !!!!?

Anyway, to everyone else:

Basically, it's an eBay business which would function from my bedroom. No deliveries needed and it would not add to the costs of any utilities. Storage would be in the garage and insurance for stock will not be needed. Parents won't mind and it wont affect anything they do.

I am not in a position to move out just yet, so I would not be able to do this from another location, only my parents.

Savvy_Sue

loungeroom wrote: »

If I did decide to use my parents home as business premises, and took the plunge to self employment would my earnings from this affect my parents benefit? I have tried to contact the Pension Service but they were unsure and basiclly said I would have to do it to find out if they would be affected.

Some benefits are based on personal assessment, and some are based on all those resident in the household. Council Tax and Housing Benefit (if applicable) both look at ALL the adults in a household, and it is assumed that adult children will contribute to these costs.

loungeroom wrote: »

Basically, it's an eBay business which would function from my bedroom. No deliveries needed and it would not add to the costs of any utilities. Storage would be in the garage and insurance for stock will not be needed. Parents won't mind and it wont affect anything they do.

I am not in a position to move out just yet, so I would not be able to do this from another location, only my parents.

And you are making some unwarranted assumptions about being able to do it from their home.

Do they own their own home, and if so does it still have a mortgage on it? If so, they do need to inform the mortgage provider that you are running a business, and the mortgage provider may object.

If they are tenants, then the tenancy agreement needs to be checked: 'not running a business' is a standard clause. The landlord (especially a social landlord) won't necessarily object, but can do so.

Finally, even if you do not wish to insure the stock, your parents' insurer needs to be told a) that you are running a business from their home and b) that you are keeping stock in the garage. And you may well find that the premium goes up, or that cover is declined.