Council say I'm not earning enough as Self Employed

extrastrongbint

Hi
I am currently self employed and have a low income. I receive full Housing Benefit of £398 per month (average rent where I live in a very rural area is £550 a month for a 1 bed flat). Every year I have to send in a year's worth of receipts, invoices, bank statements etc (A full year before I'm expected to do a tax return but...whatever) which I have recently done. Whilst speaking on the phone today to the HB dept (because they have incorrectly estimated my earnings) I was told they are going to send me a letter stating I don't earn enough, that my work may not be viable and they want to check my records every 3 months with a view to stopping my HB. Obviously this would be a disaster.
Although I do have a low income I am able to run a vehicle (albeit a shed), have flexibility (I work from home partly) and I genuinely enjoy it (I buy and sell on ebay) (I also work 35 hours a week). Does anyone have any advice? (Note: I do not need suggestions about finding a 'real' job. I live in a very rural area, jobs are scarce and those jobs are minimum wage, housing is ridiculously expensive. I am far better off in self employment.

[Deleted User]

maybe find a part time job to add to your ebay work?

pmlindyloo

extrastrongbint wrote: »

Hi
I am currently self employed and have a low income. I receive full Housing Benefit of £398 per month (average rent where I live in a very rural area is £550 a month for a 1 bed flat). Every year I have to send in a year's worth of receipts, invoices, bank statements etc (A full year before I'm expected to do a tax return but...whatever) which I have recently done. Whilst speaking on the phone today to the HB dept (because they have incorrectly estimated my earnings) I was told they are going to send me a letter stating I don't earn enough, that my work may not be viable and they want to check my records every 3 months with a view to stopping my HB. Obviously this would be a disaster.
Although I do have a low income I am able to run a vehicle (albeit a shed), have flexibility (I work from home partly) and I genuinely enjoy it (I buy and sell on ebay) (I also work 35 hours a week). Does anyone have any advice? (Note: I do not need suggestions about finding a 'real' job. I live in a very rural area, jobs are scarce and those jobs are minimum wage, housing is ridiculously expensive. I am far better off in self employment.

As regards HB being self employed means that you have to be gainfully employed

It seems that the council is questioning this.

Under Universal credit you would have to be earning the NMW for, I believe, 35 hrs a week unless you have just started up your business in which case they will allow you some leeway. it seems as if your council is starting to take a hard line approach with those whose business is not viable.

Are you claiming working tax credits?

I'm not sure what advice you want as you are not open to stopping your self employment.

So, it seems to me that you have to make your self employment viable or stop and claim JSA.

Can't see any other way

tomtontom

How long have you been self employed for? Do you do anything other than ebay? If opportunities are so poor is moving an option - short term expense for long term gain?

extrastrongbint

Thanks for the suggestions. I do claim working tax credits. Unfortunately (or fortunately some may say) I live in my home town where my elderly mum lives and really don't want to move if I can help it.
I have been self employed in a variety of guises since 2009 (claiming HB for the last 2 years at the start of my ebaying business).
Its not that I'm not open to stopping my self employment but that it would be a hell of a struggle finding a job and earning enough to live on national minimum wage...

tomtontom

Why not find a proper job and then supplement your income through ebay? You need to make a plan because if the LA are querying your income chances are HMRC will do so also.

How much do you actually make from your business?

extrastrongbint

HMRC can look all they like but its all legit!

Weary_soul

Are the council in their rights to do this? I know the inland revenue can ask this of those who claim WTC, but since when has it fallen upon local councils to demand this?

tomtontom

extrastrongbint wrote: »

HMRC can look all they like but its all legit!

No one is disputing whether your business is "legit", but there is a question as to whether it is viable as a long term concern. HMRC are really cracking down on non profitable small enterprises.

Weary_soul wrote: »

Are the council in their rights to do this? I know the inland revenue can ask this of those who claim WTC, but since when has it fallen upon local councils to demand this?

They have always been able to verify the validity of a claimant's income.

NYM

Weary_soul wrote: »

Are the council in their rights to do this? I know the inland revenue can ask this of those who claim WTC, but since when has it fallen upon local councils to demand this?

Why would you think they aren't ?

Weary_soul

Because I've never heard of this happening before? Also If someone can claim due to zero income whats the problem with this?

At least he's trying to do something. Would you prefer he rot on benefits and carry on claiming housing benefit that way?