self employed benefits?

chella

Hi can someone please explain how your entitlement to wtc and housing benefits are worked out when you are self employed and your earnings differ each week, for instance 100 one week 60 the next . Are your earnings added up and divided through the month or year to work out an average?

Thanks

compoff

For WTC, you are expected to give an estimate for the tax year initially, so if you are earning £160 every fortnight, you will give them an estimate of around £4160. You will then need to give them an actual figure once you have completed your end of year self assessment. If you notice a large change in your income during the year, you should re assess the amount. I am not sure about housing benefit but I think they ask for an estimate initially but they will check for actual figures before tax credits will. Just make sure you keep clear and accurate records of what you earn and how.

Housing_Benefit_Officer

For Housing Benefit we take the last full years trading accounts and work out income and outgoings and calculate an average weekly figure.

We don't calculate week on week or month on month peak and troughs in working - we just calculate an average figure using the previous years accounts and use those figures for the coming years benefit.

compoff

How do you use last year's trading accounts if someone has only started?

chella

compoff am confused by this too.

Thanks for all replies though.

I intend to make enough that I wont need housing benefit although I need to be sure of all the facts.

Housing_Benefit_Officer

compoff wrote: »

How do you use last year's trading accounts if someone has only started?

By asking for a projection of income.

Then every 3 months ask for 3 months trading accounts.

After a full year ask for 1 years trading figures.

Simples...

iammumtoone

I am not sure if you are aware but just to let you know when Universal credit comes in you will be expected to earn yourself minimum wage to be eligible for WTC.

Good luck in your new business.

chella

thanks to both of you, yes I am aware, and I have done my figures and am confident I will make minimum wage or slightly more. I may need to work 7 days but that's not a problem.

working 7 days will be better than the hell I am putting up with currently . I am determined, and this last year of work has spurred me on to get out and make it work.

dktreesea

iammumtoone wrote: »

I am not sure if you are aware but just to let you know when Universal credit comes in you will be expected to earn yourself minimum wage to be eligible for WTC.

Good luck in your new business.

Not exactly. It doesn't matter how much profit you will actually make. All that the minimum income floor means is that, for the purpose of calculating benefit entitlement under Universal Credit, you will be deemed to have earned your actual profits or the full time (35 hours a week) NMW, whichever is higher. Always assuming, of course, that the DWP agree that you are gainfully employed in your business.

I'm not by any means undermining what a huge effect this could have on some self employed incomes, but just want to stress there is no obligation to earn a profit of the FT NMW; just that your benefits entitlement will be based on this notional profit if you don't.