Any benefits available for self-employed who close their business due to lack of work

TomsMom

I know someone who is self-employed but jobs are few and far between and he has very little income coming in now. He's considering finishing/closing his business down (self-employed tradesman) and trying to get employment wherever he can.

I've googled but can't find anything about his sort of situation so I'm wondering if anyone knows what would be available to him and when in the event that he can't find employment straight away.

He is married, two school age children, has a small mortgage, if that info is important.

Thanks.

Horseunderwater

Does the OH work? If not, then income based JSA is an option to consider - after 13 weeks he might be able to get help with mortgage interest.

TomsMom

Horseunderwater wrote: »

Does the OH work? If not, then income based JSA is an option to consider - after 13 weeks he might be able to get help with mortgage interest.

Thank you.

Yes, the OH does work but hours/income vary according to season (holiday town). However, the marriage is a bit rocky with a possible separation on the cards within the next few months although that probably doesn't make a difference at the moment to any benefits situation.

So, if the OH is working, does that mean no benefit is available to the husband if he can't find work?

Sorry for the questions, trying to help him through a difficult situation and reassure him but I know nothing about benefits.

pmlindyloo

Job Seekers Allowance is the benefit for people who are job seeking.

There are 2 kinds.

1. contribution based JSA (based on the last couple of years NI -class 1 contributions - which is not means tested so does not take into account partner's earnings or any savings. He would not be entitled to this as a self employed person he would only have been paying class 2 NI contributions.

2. Income based JSA - means tested so will take into account his partner's income and any savings. Because his partner is working it is probable that her income will mean that he is not entitled to income based JSA.

So, that leaves council tax reduction (form from council) and tax credits.

If they are already receiving tax credits then they need to inform them of the change of circumstances. With 2 children they should be entitled to child tax credits and if the partner is working 24 hours a week then they are also eligible for working tax credits.

They can put their details into https://www.entitledto.co.uk for an idea of what they may be entitled to.

As regards the mortgage you need to be on a means tested benefit to be eligible for help with the interest.

They need to speak to the mortgage lender, explain the circumstances and ask if they can take a mortgage 'holiday', go interest only for a while, extend the term if they can't meet the repayments.

Also they can head over to the Debtfree wannabe forum for some tips on how to reduce their expenditure.

It is best that he takes any job available so that they can make ends meet.

TomsMom

Thank you pmlindylou, that's very helpful.

I think the mortgage is an endowment one so interest only plus the endowment premium, but it's not a massive mortgage.

He is willing to take whatever work he can find, might not be easy as this is a small holiday town with few permanent jobs, usually seasonal ones and, of course, season is coming to an end soon. But he's already looking .

If the OH does leave then I presume income based JSA is a possibility? It's very likely that the OH would leave the area and the children would go with her.

I'll pass your info on, thank you for the link to entitledto.