Going back to being self employed with DLA

Turning_into_scrooge

Thank you for all your replies, you certainly cleared my confusion up for me :j . I have decided to tell income support, as i am legaly obliged to do so, that i will be coming off benefit from 1st june a little nearler the time as that is when i plan to go back to work but as far as the DLA goes i shall let sleeping dogs lie there as i'm still covered untill June 2006 for care rate and Feb 2007 for mobillity. As for needing aids for work i really don't think that i need them to provide anything as i can buy a phone with a head set for £30 max and as for a chair for the desk my brother has just bought a new one, there isnt anything wrong with the old one, so i claimed it as it was about to go on the tip, I don't think its 12 months old, the colour didnt match. So thankyou so much you've probably saved me from shooting myself in the foot :T :A :beer:

Ted_Hutchinson

Turning_into_scrooge wrote:

I have decided to tell income support, as i am legaly obliged to do so, that i will be coming off benefit from 1st june

S20 - A guide to Income Support (IS20 Apr 2004)
You will I am sure be aware that working as a self-employed person while on Income support is possible initially.
If you are self-employed your earnings mean the gross receipts from your employment. These earnings are recalculated as average weekly earnings over one year (or over another period if this will be more accurate).
The following expenses are subtracted from your gross income to calculate your net earnings:
● necessary expenses for the business such as money spent on repairing equipment, interest on a business loan and excess VAT paid while claiming Income Support. This does not cover capital expenditure, depreciation, money for business expansion, and business entertainment
● repayment of capital on loans for replacement and repair of business equipment, but not on any other loans
● income tax and NI (Class 2 and Class 4) contributions, but these are calculated on a notional basis
● 50% of premiums paid for a personal pension.
The decision maker has discretion in applying some of these rules if it will result in a more accurate assessment of your income.

The point is that initially it may be the case that outgoings exceed income for a while.

Turning_into_scrooge

To start with i know for a fact that my incommings will definitely be over ridden by my outgoings for the first month as i will be sub contracted - is that the right term - and have to work a full month before being paid. At the mo my son is paying my debt managment plan for me which obviously i will be taking over once i get my wages coming in and he has said that as most of the debts were run up for things for him that he doesnt want the payments back, i feeel very guilty about that, but the thing is once i am up and running i can increase the DMP. In the mean time he has also said that we can manage the month on what he can give me, his dad has allot of money and has started giving him an allowance, and as i've learnt to shop wisely from the money old style board we should be able to manage without too much money. I do have equipment from when i was working before which i have checked and will do sufficiently untill i feel it's time to replace, its an uncessecary spend at the mo. As far as equipment goes i'm very lucky as i don't need allot.
I have learnt some very hard lessons too. Thanks for your help Ted, you're a mine of information :beer: :A :T