Housing & Council tax benefit while self employed? Help!

Fay_elizabeth

Hi All,

I work for a small business as an admin and postal assistant for 27-30 hours a week. I work for them on a "self-employed" basis however and although I work the same hours every week (give or take) I invoice them every 4 weeks and they pay me. Its up to me to pay my tax and N.I.

My partner and I both earn very little so we're trying to fill in council tax and housing benefit forms to see if we're entitled however the form for self employed people is so complicated! Its clearly written for people who actually own businesses and know about vat etc.

How on earth do I fill it in as a person who is really employed but invoices employers in a self employed way!?

I'm really confused

enabledebra

HMRC have the final say on whether you are self employed or employed so if they have accepted this and you don't want to challenge it the normal housing benefit rules for self employed income apply- see here for an overview (don't worry that it's from a random council they all work to the same rules) http://www.hackney.gov.uk/Assets/Documents/self-employed-advice-htbandctb.pdf

merlin68

My hubby is the same you, just declare all your incomings and outgings. don't worry about vat.
They work the rest out, we ended up only having to pay £50 a nonth rent and ct.

dktreesea

You applly for working tax credit from the HMRC, declaring your hours and your net income, so whatever you invoice, not inclusive of VAT if you are registered for VAT (you don't have to be if your gross income, i.e. income prior to expesnes but not prior to income tax and NICs0 is less than approximately £73k per annum.

When working out your hours and keeping in mind you are only paid for the hours you work, remember to exclude your holidatys, including, if you don't work them, staturtury holidays. So, assuming 3 weeks holiday a year plus 10 days of stats, or there abouts, you would multiply your invoice amount by, say 47 weeks/4weeks (i.e. the invoiced amount per week, so divide by the 4 weeks you invoice for, then multiply by 47 weeks to get the yearly amount.).

So, with the working tax claim, you declare your yearly expected income to HMRC and include your partner's income on your claim.

Once you get your award notice, you can take it to your local council office together with your latest lease document for your rent and they will work out what you can claim for housing benefit and council tax benefit. Please note, this is paid in arrears. You may be able to backdate it, but I am not sure of the rules on this.

fluffymovie

Self Employment forms can be complicated but essentially, if you pay your own NI and tax, you would be s/emp

If you complete the form best you can and do a covering letter, the office can work out what they need to. You wouldn't believe how often we just get something with no covering letter and are left trying to work out what it means!

merlin68

It's not quiet as simple as that, they send you a form you have to list all your incomings and buisness expenses, take them all down to the council with reciepts, invoices and bank statements. for the period there asking for i ended up with a whole carrier bag full and they photocopy everything lol.
Make sure yo have kept all your petrol, phone anything car related, clothes, lunches at work etc. you will be in there at least half an hour.

fluffymovie

Every council is different. At my office we used to invite all
S/e claimants in for interview. We have reviewed our processes and don't do that now.