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cancer self employment tax credits and council tax

Hi,

My sister 50+ and 2 children was diagnosed with cancer one month after starting up as self employed, mid November she signed off sick and returned to self employment full time although she is also having tests to see if cancer has spread to another part of her body. she has received no income in that time, has been contacting people about possible work and is also looking for temporary work.

She borrowed money from mortgage to keep going. She is worried that these borrowings should be treated as income and will disallow her from the tax credit and council tax relief she has received. I think not but can someone point me to a link on the internet that would reassure her ?
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