Benefits for a Low Income - But What if I Earn Commission?

Mummy_Moo

Hello,

I moved house just over a month ago and have had a few changes of circumstances. Before I moved house I was claiming Income Support (single parent), Housing Benefit and Child Tax Credit. At the moment I'm still getting my Child Tax Credit, but am waiting for my applications for Housing Benefit and Income Support to be assessed (it's taking a while as there have been some changes and I've had to request letters confirming my circumstances etc. from various different people).

I'm currently looking for a job as I will be in a very poor financial situation if I remain on benefits. One of the jobs I have been interviewed for has a low basic salary (£11,500), but with the potential to earn extra commission by beating targets. If I get the job I think I'll be able to claim Working Tax Credit, and possibly some Housing Benefit (obviously not the full amount). But to apply for these benefits I have to tell them how much I earn, so how would this work if my income fluctuates because I might earn commission? Do I have to re-apply every month giving details of the previous month's earnings, or can I tell them at the end of the tax year?

I don't want to be claiming anything I'm not entitled to, and if I end up earning lots of commission then I might go over the income level where I can get Housing Benefit, but if I'm not earning commission, or only earning a little, then I will struggle to meet my essential expenses on my salary alone.

Thanks for your help.

Housing_Benefit_Officer

It is income.

I recently dealt with a review for a car salesman. At the beginning of his claim he declared his basic salary - 18 months later and a review his income was an average £800 per month higher because of commission - mega large overpayment

Housing Benefit doesn't work like Tax Credits - you don't declare your income at the end of the financial year. You declare changes of income as and when they happen.

Mummy_Moo

Thanks Housing Benefit Officer.

What is the best way to go about it with housing benefit then? Can I just send them a letter each month confirming my income, or would I have to fill in a whole new form each time and wait for it to be processed as a new application?

With tax credits is it best to give them my basic salary but put some money aside expecting to have to pay some back in April? Or should I over-estimate my potential income and then possibly get a lump-sum at the end of the year?

bloolagoon

Mummy_Moo wrote: »

Thanks Housing Benefit Officer.

What is the best way to go about it with housing benefit then? Can I just send them a letter each month confirming my income, or would I have to fill in a whole new form each time and wait for it to be processed as a new application?

With tax credits is it best to give them my basic salary but put some money aside expecting to have to pay some back in April? Or should I over-estimate my potential income and then possibly get a lump-sum at the end of the year?

You get an amount disregarded for tax credits, perhaps if people said what this is you could add that and maybe some over.

Horseunderwater

The income disregard for a rise is £5k, but that applies from one year to next most of the time.
Personally what I would do is start off with the basic wage wait 3 months and work out an average for that period and then multiply that by rest of year. So for this year it would be pro rata 50% of the £11.5k + 3 month commission - so multiply that 3 months by 2 and you'd have an approximate nearish estimate. You could always add on a little extra to try and get an underpayment. Then next year a more precise figure can be worked out based on this year.