Newly self employed, claiming HB

Glitterpix

Hello!

I went self employed in January, making and selling accessories & laser cut acrylic jewellery on etsy. I work 25 hours a week minimum, but obviously my earnings depend on if I get customers!

My OH works 40hrs a week earning 13000 a year.
We also have two children (4yr & 2yr)

We've informed tax creds about my change already and Im now also entitled to working tax on our joint claim so our tax credits have gone up by £80 a month!

However, OH deals with the housing benefit (as its in his name and goes into his bank) but he's forgot to mention my self employment!

Though I doubt we'll get into trouble, they'll just take back anything we owe, right?

My main question is, will we lose all our housing benefit now im self employed?

A friend of ours said we will, and thats why she's not done it as she said she wouldnt be able to afford her rent...

Is this true or is she just kind of making excuses for not working?(she's on all benefits and stay at home mum...)

Starting to worry as if we got *no* help it would be very difficult as OH is on a low income and my shop is only just starting and in the last 3 months Ive only made £80.00 x

BigAunty

Yes, you should be able to pay back any overpayment.

You can identify your HB by putting your details into the Turn2us online benefit calculator.

The local council will want to know your self employment income.

Many people don't understand that the majority of HB claims belong to those in employment. Tell your friend to model her likely income on the Turn2us online benefit calculator to determine if she's better off as a SAHM or in employment.

Certainly, the proposed changes in the Universal Credit system is supposed to iron out the disincentives that make some households feel better off on benefits than in employment.

HappyMJ

You've only made £80 in 3 months. It will hardly have an effect at all on your HB claim. As it is a business you can estimate zero earnings and then provide profit figures at the end of the year and then arrange to repay any overpayment if one arises. If you seem to be making more profit during the year you can notify council to prevent a large overpayment from accruing.

kezlou

Hi,

Yes you should get housing benefit but it is a bit of a trail.

When we went self-employed back in November we had a right carry on and we had to wait months for it to be sorted. Basically we had to show that we were not making enough from the business only a loss. This showed us in negative equity so we were granted full housing benefit and council tax benefit for 6 months.

We then have to reapply, take in details etc and the process starts again. The manager of our local office had to make the final decision.

you have to show what you've earned and what you've paid out already. I.e materials, insurance etc
It all gets taken into account as well as your utility bills, postage, rent etc

hth

ACon

I give an "estimated earnings" declaration to the council for my husbands self employment (yes I deal with all the tax/benefit/work stuff) some weeks he's made nothing so I've made a declaration of "nil income" and they backpay us full HB. If he by some miracle ever earns more than we declared then we inform them and they will either adjust it or we will pay them back.

Having earnt £80 in 3 mths you wont be in any trouble, probably wont affect it that much, you may have had a slight overpayment they'll want back through cutting next month, or request a payment.

heathcote123

Glitterpix wrote: »

Hello!

I went self employed in January, making and selling accessories & laser cut acrylic jewellery on etsy. I work 25 hours a week minimum, but obviously my earnings depend on if I get customers!

My OH works 40hrs a week earning 13000 a year.
We also have two children (4yr & 2yr)

We've informed tax creds about my change already and Im now also entitled to working tax on our joint claim so our tax credits have gone up by £80 a month!

However, OH deals with the housing benefit (as its in his name and goes into his bank) but he's forgot to mention my self employment!

Though I doubt we'll get into trouble, they'll just take back anything we owe, right?

My main question is, will we lose all our housing benefit now im self employed?

A friend of ours said we will, and thats why she's not done it as she said she wouldnt be able to afford her rent...

Is this true or is she just kind of making excuses for not working?(she's on all benefits and stay at home mum...)

Starting to worry as if we got *no* help it would be very difficult as OH is on a low income and my shop is only just starting and in the last 3 months Ive only made £80.00 x

How do you make £80 out of 300 hours work? what takes up all the time?

Glitterpix

thank you everyone!
Yes I've just done my tax return which shows I've made a loss so far, so will do it at nil income

Great, I was worried by what the friend said as Im getting married in 19 days (!) and a stoppage of the housing benefit would've been a right pain.

Obviously if I start making an profit I'll let them know, it would be lovely to make enough to be able to come off the HB to be honest

Glitterpix

I dont understand what you mean?

Glitterpix

I only made £80 as I've only had a few customers so far...

And what takes up all the time? Making all my products from scratch, getting them photographed, running the shop...

heathcote123

Glitterpix wrote: »

I only made £80 as I've only had a few customers so far...

And what takes up all the time? Making all my products from scratch, getting them photographed, running the shop...

But won't the tax man think you are trying it on for tax credits if you show an income of 26p an hour?

lovetowinacar

heathcote123 wrote: »

But won't the tax man think you are trying it on for tax credits if you show an income of 26p an hour?

No since her husband works well over 30 hours looking at the original post so this person is not just "pretending" to work hours to get maximum tax credit this person is trying to build a business but doesn't earn much yet.