Benefit loss and starting own business

waterlily

Hi

My sister in law is currently in receipt of housing benefit, council tax benefit and income support. She is desperate to move on from this situation and has made enquiries with a local shop owner to start up a part time business of her own in another small shop he owns. My question is will she lose her benefits whilst trying to establish herself as self employed. Clearly she wont be earning anything like the amount needed to cover her benefits. Is this a viable thing for her to do? I hope so, she is desperate to move forward.
Thanks

falko89

waterlily wrote: »

Hi

My sister in law is currently in receipt of housing benefit, council tax benefit and income support. She is desperate to move on from this situation and has made enquiries with a local shop owner to start up a part time business of her own in another small shop he owns. My question is will she lose her benefits whilst trying to establish herself as self employed. Clearly she wont be earning anything like the amount needed to cover her benefits. Is this a viable thing for her to do? I hope so, she is desperate to move forward.
Thanks

Anything she earns will more than likely come straight of benefits meaning she'll have to clear more than what she gets now to make it worthwhile, Same if she even gets a min wage job, I believe the term is called benefit trap and she like myself is caught.

Notmyrealname

falko89 wrote: »

Anything she earns will more than likely come straight of benefits meaning she'll have to clear more than what she gets now to make it worthwhile, Same if she even gets a min wage job, I believe the term is called benefit trap and she like myself is caught.

What is wrong for working for the same as you get in benefits? Many people earn no more than they would in JSA, CTB and HB but they work because they have a bit of pride in themselves.

You're in the benefits trap because YOU CHOOSE TO BE. I can only hope that the govt makes it more and more impossible for you to continue with such a choice.

falko89

Notmyrealname wrote: »

What is wrong for working for the same as you get in benefits? Many people earn no more than they would in JSA, CTB and HB but they work because they have a bit of pride in themselves.

You're in the benefits trap because YOU CHOOSE TO BE. I can only hope that the govt makes it more and more impossible for you to continue with such a choice.

Nothing but she won't be getting that.

Clearly she wont be earning anything like the amount needed to cover her benefits

So say she earns £100 a week working, thats taken directly of say housing benefit.

And you no nothing about my situation.:mad:

Arg

Notmyrealname wrote: »

What is wrong for working for the same as you get in benefits? Many people earn no more than they would in JSA, CTB and HB but they work because they have a bit of pride in themselves.

You're in the benefits trap because YOU CHOOSE TO BE. I can only hope that the govt makes it more and more impossible for you to continue with such a choice.

I don't think pride is the right word stupid is better much like the rest of your post.

AFAIK housing and council tax benefit is worked out differently from JSA if you're earning small amounts of money.

Notmyrealname

falko89 wrote: »

So say she earns £100 a week working, thats taken directly of say housing benefit.

And? What is the problem with that? Unless you choose to be stuck in the benefit trap this is one of the things you have to accept.

property.advert

falko89 wrote: »

So say she earns £100 a week working, thats taken directly of say housing benefit.

Around 85% of excess income is deducted from housing benefit and council tax benefit. There may however be some run on relief, for a month or so, where full benefits would be payable.

The way out is really to start in business and don't say anything. You cannot do that for long but it gives you breathing space. Not what the rules say but purely practical.