Family loan and impact on benefit

markBailey

Hi, I'm newly self employed and because of council delays I'm still waiting for the HB. The business will need some start-up time soit's way I'm asking the HB at the moment. Since they still haven't started to pay it, all the money I had for the start-up are going into the rent (it's 3 months I'm waiting now). So, I was thinking about asking a loan to my family to invest into the business. But at the same time I don't know if the council will count the loan as Income and so they could deny any benefit for the period.
Any help will be appreciated, thanks !

rogerblack

One off payments are generally not income, but capital.
Making the loan formal, with actual terms, witnessed by a solicitor would be a good idea.
Saying you cannot spend it on personal expenses or rent, for example.

markBailey

Well, paying a solicitor would eat 20% of the apple .. anyway, do I have to tell the council I had such a loan ?
It's not a change of circumstances of course, so should I write about it in the periodic review of income ?

princessdon

Is it over 6K - will it take the total of all savings over 6k? If so then yes inform them (what they will do is irrelevant).

A lot depends on if this is your personal or business bank account