Help with benefit/job options

kyleapt342

Hi there

I'm posting this in relation to my brother.

I moved away from England a few years back and now live in Scotland, so I'm unsure of the changes (if any) in what help people can get these days and how they differ across the border.

My brothers situation:

• He works part time earning £100-150 per week cash in hand
• He is 29 and lives in a house owned by our mum paying her rent which includes all bills
• He is NOT registered as Self employed (ive told him to many a time but 'never got round to it')
• The most he would get from work is £680 per month, average is £580 pm
• He is not on ANY household bills as the named tenant as he just pays our mum an 'all in' amount

Basically he is really struggling, but is wary about going and asking for help he feels he has not been 'in the system' for so long. Including getting paid for a job and not being on a tax system. He wants to apply for other jobs now he has a good amount of experience in this area but again is wary about them asking what he has done for the previous 2 years. He can get a reference and can show his bank statements to show the amount that goes in but thats it, no p60 would help him.

He's an idiot because he doesn't earn anywhere near the minimum tax threshold but is worried about what this will open up.

Can I ask if you guys on here have any thoughts, am I right in saying he should have registered as self employed ages ago and that he should just do this now.

Also could he get any help with benefits in any way whilst working and earning this tiny amount? My family can draw up a tenancy agreement if needed, he pays the market rate for the place anyway so would make no difference. She also pays tax on the rental income.

I think that's everything. Thoughts appreciated.

kyleapt342

Just to add, his preference is to apply for other similar but better paid jobs and NOT to ask for help.

He just wants to be aware of the ramifications of applying for something with his previous two years of 'off the grid' history.

Benefits are not what he actually wants.

wiltsguy_2

You cannot claim housing benefit if the house is owned by your parents.

kyleapt342

Hi Wiltsguy

Thanks for that, that does make full sense.

I suppose the angle he needs to look at is whether he has shot himself in the foot with his job/earnings and not being registered. Any ideas?

wiltsguy_2

kyleapt342 wrote: »

Hi Wiltsguy

Thanks for that, that does make full sense.

I suppose the angle he needs to look at is whether he has shot himself in the foot with his job/earnings and not being registered. Any ideas?

not sure about self employed side of things, but he really needs to increase his income, if he registers properly etc i think he can get help with tax credits to boost his income.

Lucky he has you looking out for him

pmlindyloo

It is unlikely that he is self employed (google for the criteria)

it is more likely that his employer is not doing things correctly. Did he receive pay slips ( a legal requirement)? Was he paid NMW? (a legal requirement?

It is possible/probable that he is under the threshold for both tax and NI but this cannot be used as an excuse by his employer who appears to have acted illegally.

My best advice is for your brother to get some professional advice - CAB is a good start even if they have to signpost him somewhere else for specialist support. He should take bank statements and any other paperwork,

Since he is looking for a new job it seems a sensible time to sort this out.

If he leaves work he can claim income Based JSA whilst he looks for a new job. The fact that his employer is employing him without issuing payslips or paying NMW he should not be refused, although the JCP will need evidence of this.

As regards other benefits he may be eligible for working tax credit if he works 30 hrs a week with a low income but they will need evidence so he would probably not be eligible at the moment (others may clarify) but in the future.

You can claim HB when renting from a family member but you would have to prove it was not a contrived tenancy - set up for the purpose of claiming HB. Since your brother doesn't currently have a tenancy agreement this would weigh heavily against him receiving HB.

Is the house big enough for him to have a lodger to increase his income?

Get some advice about the job and then go from there.

kyleapt342

If genuinely self employed he should have registered as such. Tax issues aside, if not registered as employed or self employed then he won't have been paying any NI so this could affect his pension later in life.

How many hours does he work per week? - I know this sounds iffy, believe me I've talked about this a lot with him. He started this to help out a new locally funded project helping kids in a music school. They work with kids in after school projects etc teaching music. He thought it would be a month or two and it just carried on. He does around 16-20 hours per week.

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it is more likely that his employer is not doing things correctly. Did he receive pay slips ( a legal requirement)? Was he paid NMW? (a legal requirement? - He sends an invoice to the company (basically just an email template he was given and adds his hours) the company have CERTAINLY not done things correctly I agree, i dont care about the company setup though, I care about him getting a better job. Which he could do now with the experience but like i say its a worry for what happens if...

It is possible/probable that he is under the threshold for both tax and NI but this cannot be used as an excuse by his employer who appears to have acted illegally. - Agreed

My best advice is for your brother to get some professional advice - CAB is a good start even if they have to signpost him somewhere else for specialist support. He should take bank statements and any other paperwork - Also told him to do this, wary about going on the system but I knwo they would be confidential so I think I'll push this again.

If he leaves work he can claim income Based JSA whilst he looks for a new job. The fact that his employer is employing him without issuing payslips or paying NMW he should not be refused, although the JCP will need evidence of this. - I think he likely does get minimum wage actually, but that will be it.

As regards other benefits he may be eligible for working tax credit if he works 30 hrs a week with a low income but they will need evidence so he would probably not be eligible at the moment (others may clarify) but in the future. - Interesting, he may have the chance to take over some other shifts so may be able to at least get to that limit.....possibly

Is the house big enough for him to have a lodger to increase his income? - Yes its a 3 bedroom semi-detached. My sister lived there whilst at Uni but is now moving out with her BF. Hence the new worries about his money as he will be there alone, they will need to fill the empty room.

Get some advice about the job and then go from there. - Thanks for all your input

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This is for my mother as well as my brother. You know how these things are. Eldest son now living away, married, mortgage, starting young family and happy. Younger daughter out of uni and in a career job....she is very worried about the middle brother though. He wants to move up the ladder but this worry is holding him back a tad.

I think I have a good chunk of info to go back and say YES speak to CAB, YES register for tax as you likely wont have to pay it (not certain though) and he MAY get help but thats not the focus at this stage anyway.

Really appreciate all your comments.

BigAunty

Currently there are no major differences in the benefit system between Scotland and England.

English councils do get to set their own council tax reduction policies (but must stick to core countrywide rules like 25% single person's discount). Scottish government pays the 'bedroom tax' or 'spare room subsidy' for social housing tenants who occupy properties larger than their needs with empty bedrooms in.

To get a full state pension, he requires 35 years worth of NI contributions. Working in the black economy will affect this.

Looks like on average, he earns around 7k per year or £133 a week. That's around twice as much as someone on Job Seekers allowance gets and and around a third less than someone on National Minimum Wage.

Does he want to increase his self employment or prefers to find more regular employment as he's not enjoying freelancing? Perhaps the Princes Trust can mentor him into greater profit and help him the self employment paperwork?