Benefits/Self Employed

TheMissus

Just wondering how benefits are worked out if you're self employed. For example if I were to start a small business selling stuff, I wouldn't have a figure about how much I was going to sell each month...one month could be for example, £200, whilst another month could be £800...

How would one pay the rent/council tax and live on months where the business didn't do so well?

I'm aware one can receive CTB/HB/WTC but how would the amount of entitlement be calculated with no definitive amount regarding what one is earning each month?

heartbreak_star

I think one would have to put money aside when the business is doing well for months when it isn't.

Also I believe (though I may be wrong!) tax credits and the like are calculated on a forecasted average? Someone with more knowledge will probably correct me on that.

HBS x

pmlindyloo

Yes, for tax credits you have to do an estimation of your income for the year.

As regadrs HB and CT support this is what one council say about it:

http://www.salford.gov.uk/hben-faq.htm

I believe that when you are starting up some councils ask for invoices etc after a certain period of time.

Hopefully, someone will come along who has actual experience of this.

firefly369

With regard to WTC I give an estimated amount of earnings in my application submitted before July 31st (you write in the figure for self employed and then tick the estimate box) and then when my accounts/tax return is completed I have to phone and give an exact amount before the 31 January tax deadline.

I always over estimate my income in July as I would rather be under paid than over paid and have to pay it back.

Not recieving any other benefits so cannot advise on those.

Also getting professional advice from an accountant when you start up will save you a lot of hassle in the long run, make sure you know when the tax and national insurance deadlines are; get the right tax code and find out exactly what you are entitled to as a start up business as many local councils give start up grants that do not have to be repaid!