Self-employment income change Vs. employment income change

gilbutre

Hi,

Let's say you change your job with a different income. After telling HMRC and local Council, housing benefits and tax credits payments will immediately adjust.

But what if you're self-employed and realize your income will suddenly change drastically (perhaps you just signed for some massive gig): will HMRC/Council immediately adjust payments, or will they tell you "adjustment will take effect from next tax year based on current year total income", opening the door to a massive overpayment?

Housing_Benefit_Officer

For Housing benefit we normally take the last years self employed income to calculate the coming years benefit entitlement. The exceptions include the loss of a major contract where income plummets or gaining a major contract where income goes through the roof.

Speak to your local Housing Benefit office for advice. Ask who you are speaking to and to check with a manager and get them to confirm that advice in writing.