Self Employment & Housing Benefit

starM

Hi,

My sister is currently on income support and living in an rented property. She is a lone parent. Trying to set her own business up. I think current income will be only 5k because of the initial costs involved.

At present her HB is based on income support. What documents does she need to send to HBO for self employment?

Also is HB is just based on income or also on working hours?

Will Tax Credit award notice will be acceptable. She will be registering for self assessment etc but it will take time for utr to come through.

Thanks
MS

Housing_Benefit_Officer

1) Has she spoken to the DWP to see if she can 'test trade' or qualify for New Enterprise Allowance?

2) If she has continuously been unemployed and in receipt of a qualifying benefit for 26 weeks without a break then she should be entitled to a 4 week 'run on' or Extended Payment Benefit where a further 4 weeks HB and help towards Council Tax is paid at the same rate as when she was claiming IS.

3) For proof of self employment normally initially a statement of assumed self employed income. Then every 13 weeks a break down of income and expenditure so a more realistic figure can be used. Depending on who is dealing with the claim they may want to see receipts. This figure is used to pay a further 13 weeks HB. After a year then a full years trading figures. This will be used to pay the coming years benefit. So the previous years income is used to pay the coming years benefit.