joint business assets and ability to claim

batucadabird

Hi need advise people. Worked full time for 10 years and also did up/ rented out places jointly with my mum. Did self assessment all declared all along, but the self employment business didn't actually have a name or was not officially registered as a business. Then I get made unemployed just as the last rental place sells. The money is in a joint business account with my mum. Id like to go self employed eventually but am currently trying to do up a place to be able to work from to be close to my child who is 2 and my husband who has ailing health and unable to work but not claiming due to visa worries (though he is eligible by right) so here I am now thinking that money which is an essential business asset if you will (i.e. deposit for a new rental place) might be deemed money I must live off. They say savings above 6000 makes it not ok to claim; so in worry now not currently claiming help of any kind as working tax credit was for when i was working. only child benefit. Can I claim help? or must I attempt to try to buy another rental property right now with no payslips etc? Im watching the mortgage/deposit money disappearing so fast it makes me sleepless. Please help.:eek:

rogerblack

The money you have saved 'for the business' is not an exempt expense, and will be classed as capital.

It is very unclear what your situation is.
Do you currently own, or have an interest in any property you don't live in?
This would often also be counted as capital.

The limit for most income based benefits is 16K, not 6K - at 6K your income begins being reduced.
If you were a lone parent, in principle, you could claim income support.
This is likely impossible if you are married, and have in the past, and expect again to live with your husband.

WTC has no capital limit, and is not related to your savings.

Were you, with the buisness - earning substantially above NMW?.

batucadabird

Im married. Ive not earn rent from the property I had with my mother since Sept 2013. I have made some profit out of the sale, about 10,000. It was done up and sold finally earlier this year. I stopped working full time end April. I was earing about 18000 from my full time work.
You see, the gradual renting and reselling was to cover the interest only mortgage on the house I live in. Im about 30,k short now. I feel I have to again try to get a property to rent to attempt to raise the remaining 30,000 and continue with that business. That in itself would be self employment.
Major issue too is I had planned to extend the term of the mortgage on my own house which will end the mortgage in three years (it was set up with my mother on it two though she didt pay anything in. Sadly I no longer have payslips to do that and when I tried the credit record wasn't perfect due to costs incurred doing up the house I planned to sell. Now the credit records great and no longer have payslips to do that. Put it this way, Ive currently got less than I originally put down as the deposit for the last house project back in 2012/early 2013 and earn no rent from that project since sept 2013, made about 10k from the sale at the start of this year. I feel like the only way forwards is to continue and find a multiple occupancy rental property and try to do another buy to let with a 25pc deposit and pray. I have to preserve what was to pay off my own house but if i pay off as much as i can in the mortgage now Ill be 30k short. See the problems? What on earth do I say when i try to ask for support and can I even?

rogerblack

I'm not going into all the depths.
In short - if you own any equity in a property you do not live in, it will not be disregarded for JSA, or UC. Your rental income will also be counted.
In principle, WTC might be applicable, if you are working the hours required.

batucadabird

Ive just been trying to work it out for the tax credit people. After the sale I made a total of 29604.23 which ill declare as self assessment stuff. I also got the deposit back from that house planning to use both for further rental business stuff but now I'm having to make drawings off it to live on and are not claiming any benefits or support and have no income at all now. On top in 2014 -15 tax year I earnt 18314.07 which was taxed at source at my last full time employment now sadly over. When I approach the job centre now what should i be saying exactly? Sorry to be a bit of a dunce but i really don't know my way round this very well and I really appreciate you helping, I don't know the jargon very well Im afraid...

nannytone_2

did you pay a class 1 NI contribution in the tax years 12/13 and 13/14?
if not, you won't be eligible for costs based JSA.
if you have between 6 and 16k your JSA ( income related) will be reduced, above 16k and you won't get any

batucadabird

well, maybe Im not sure what class 1 NI is; I did the self assessment stuff to HMRC and included all things from full time work to rent in and expenses out, and paid all that was asked of me. I was also taxed at source monthly at work. Sometimes i get these self employment slips asking me to pay more tax which seemed like some separate thing but I've not done it as i was sure I paid all tax accurately through the SA declarations. If they thought not they would have altered my tax at source band at work.

nannytone_2

we're not talking about tax. were talking about national insurance

bloolagoon

Op says the business wasn't registered as a business.

nannytone_2

but they also say they were taxed at source from work

batucadabird

yes NI taxed at work at source, and any self employed stuff with the rental business and doing up places with my mum (though not registered as a business, you're right) declared and taxed with self assessment too.