Benefits Entitlement

carol7

My friends have finally decided to call it a day and close their pub as it is no longer financially viable to keep it open.
They would like advise on what benefits they can claim. They have a 18 year old dependant child at college and currently receive Child benefit, child tax credits and working tax credit.
As self employed both paying self employed National Insurance does this entitle them to claim contributory Employment Support Allowance? How is the tax credits they currently receive taken into consideration when calculating their Employment Support Allowance entitlement.

Some general advice would be greatfully apreciated.

fresian_cow

If they are both able to work and looking for work they would apply for Jobseekers Allowance. With a dependant child, one of them will apply on behalf of the family, then when they have no dependants it will be a joint claim in both names (if they still need it then) - this is if they claim income based. They could both apply for contribution based but this is only paid for 6 months and I'm not sure if self employed contributions give you eligibility for that, also it's only paid for 6 months and they couldn't get mortgage interest help if needed. If they are renting they can apply for council tax benefit and housing benefit, if mortgaged it would be mortgage interest help and council tax benefit. Child benefit will continue until that child finishes relevant education, same for child tax credit. Their tax credit amount will probably change, they will no longer be eligible for working tax credit but may get more child tax credit.

Its only if one of them is sick and signed off by the doctor that they would claim ESA

pmlindyloo

Class 2 NI contributions do not usually count for contribution based JSA so they would have to apply for income based JSA.

See here:

http://www.adviceguide.org.uk/nireland/benefits_ni/benefits_benefits__introduction_ni/national_insurance_contributions_and_benefits.htm

They can put their details into www.turn2us.org.uk (click on Benefits on banner and you will find the calculator) to find out their possible entitlements.

They need to inform HMRC of their change in circumstances as regards their tax credits.