Help Please, Self Employment but low income, can I claim housing benefit?

nightskys

I have been unemployed for a few years, so I have been looking at becoming self employed. I have been claiming jobseekers allowance, housing benefit and council tax benefit.

An opportunity of some work has come up recently, but it would not be full time, it is project based, although the rate of pay is quite good, £11 a hour.

From what I have been told about the work so far, the first project would only last for a week which would amount to £440 before any tax or NI.

I have told me there is a good chance there will be more work, which would be a longer project, perhaps two weeks to a month, but it might not be immediately it could be in a few weeks time.

I know that if I earn £440 in a week that will mean I have to sign off from JSA. But I may not have any more work for maybe a few weeks to a month and even if I did start straight away, £440 would not cover my rent, bills and food, it would be much less than JSA + housing benefit that I get now.

Am I right in thinking that I can still claim housing benefit on low income? I have asked at the council once before, but I was very unclear about the information they gave me. I read in another post here that was quite old something about having to give an estimate of the amount you will earn over 13 weeks, is that right? If you won't earn as much as JSA + housing benefit + council tax benefit, will they pay the difference or part of it?

If I did a weeks work, then didn't have any more work lined up can I sign back on? How long would it have to be afterwards before I could sign on? Or is based on how much money I have earnt?

Sorry for so many questions, I am very worried that I could be making a mistake by taking on a weeks work if I can't cover my rent for the next month. But I have been unemployed for a long time and I really do want to work. Thanks in advance for any help you can give me.

allen35

Inform the Jobcentre that you have a weeks work and they will give you guidance on making a rapid reclaim.

nightskys

Thanks for you prompt response allen35. Should the Jobcentre pass that information on the housing benefit if I tell them what is happening? Or do I need to go and see them separately? When I have tried to ask them questions in the past about housing benefit, they seem to know very little and have always referred me to the council offices. But I have heard that they pass information on to each other now with their new computer system. Will I end up in a position where the Jobcentre tell housing benefit I am no longer signing and have HB stopped? If I rapid reclaim, will housing benefit restart?

Do you know when I would be eligible to make a rapid reclaim? Would it be the following week because I only have one weeks work, or would it be longer because the work exceeds £71 a week?

Thanks again for your help x

HappyMJ

nightskys wrote: »

Thanks for you prompt response allen35. Should the Jobcentre pass that information on the housing benefit if I tell them what is happening? Or do I need to go and see them separately? When I have tried to ask them questions in the past about housing benefit, they seem to know very little and have always referred me to the council offices. But I have heard that they pass information on to each other now with their new computer system. Will I end up in a position where the Jobcentre tell housing benefit I am no longer signing and have HB stopped? If I rapid reclaim, will housing benefit restart?

Do you know when I would be eligible to make a rapid reclaim? Would it be the following week because I only have one weeks work, or would it be longer because the work exceeds £71 a week?

Thanks again for your help x

They "should" pass the information on to council when you sign on again but best to check with them anyway. Your claim starts again the day you finish work.

nightskys

Thanks for your reply HappyMJ Does that means I shouldn't have to work out my projected income for the next 3 months for housing benefit? I just need to do a simple rapid reclaim if it the work is only for a short time? I guess I still need to register as self employed, even if it is only for a week?

HappyMJ

nightskys wrote: »

Thanks for your reply HappyMJ Does that means I shouldn't have to work out my projected income for the next 3 months for housing benefit? I just need to do a simple rapid reclaim if it the work is only for a short time? I guess I still need to register as self employed, even if it is only for a week?

If they are paying you on an invoice that you raise then yes you need to be registered self employed with hmrc. You should also ensure you have the right insurance in place such as public liability and professional imdemnity insurance. However, you could choose to put the work through an intermediate company such as an umbrella company and you will not be self employed as you will be an employee of the umbrella company.

nightskys

They will be paying me on invoice. I don't mind registering with HMRC, if there so long as there aren't any implications that make a signing back on more difficult than being employed, which is sounds like their aren't really?

You said that the JSA claim starts again from the day you stop working, does that apply to housing benefit too? So it would stop for a week then start again?

I have got a quote for insurance, which I will take for when this job starts.

nightskys

I just spoke to my adviser at the training programme I am attending via the Jobcentre. I explained the situation about the possibility of having two projects. She said that I could sign off and sign back on after the first project, and maybe the second, but if I keep doing that as a self employed person the Jobcentre won't allow it. Is that true? Is there a limit to the number of times you can sign on or off?

I am nervous, she made it sound like it really wasn't worth my bother. But surely it should be better to do some work than no work?

HappyMJ

nightskys wrote: »

I just spoke to my adviser at the training programme I am attending via the Jobcentre. I explained the situation about the possibility of having two projects. She said that I could sign off and sign back on after the first project, and maybe the second, but if I keep doing that as a self employed person the Jobcentre won't allow it. Is that true? Is there a limit to the number of times you can sign on or off?

I am nervous, she made it sound like it really wasn't worth my bother. But surely it should be better to do some work than no work?

There is no limit to how often you sign off and on. As long as you are always looking for work between contracts then you should be fine. However, you might not get much money so it may not actually be worthwhile signing off and on too often. The previous contract must have finished with no further chance of another one starting the next week. The contracts must be on an as and when required basis. If you finished a contract with another one starting in a weeks time with the same client the jobcentre may not consider you are genuinely looking for work for just 1 week. So it's a balance you have to weigh up. If you know there isn't any work on the horizon then sign on.

If you were working through your own limitedcompany you are supposed to issue yourself with a P45 every time there is no work which you then give to the jobcentre.

nightskys

Thanks so much for your reply, it's making me feel so much better just being able to talk this through with someone who knows what I am talking about. That does help me make some more sense of it.

I am just trying to think through the implications of this, is this how it would work?

Say I did the weeks work @ £440. Then I knew I didn't have any more work for at least week, then I should sign back on?

Jobseekers allowance is paid fortnightly in arrears? So it could be 2 - 3 weeks after I did the work that I would get any money from them again?

So if I sign off to do a weeks work, I need to be able to cover my next two - three weeks worth of expenses?

My housing benefit, council tax benefit and JSA add up to around £180 a week, which is £540 over 3 weeks. As I would be getting £440, I would be £100 worse off, before tax?

I realise that I will be getting paid JSA for 2 of those weeks, but not till later on, so I won't have any money for those 3 weeks and will be worse off?

I am I thinking about this right?

catz1ct

Please don't assume the job centre will pass on information to the council for Housing Benefit because they rarely do!