Pension credit and work

Westie151

My husband is 67 and gets state pension and some pension credit. We have one dependant son. I get DLA I am starting a small business which is office based to do with genealogy As the earnings can take 3-4 months to come in from any clients., there is not guaranteed income. In this case where we still need to not lose the benefit that comes with pension credit as me and my husband rely on lots of prescriptions we could not afford straight away nor dentist and glasses etc. i do want to remove ourself from any assistance from the government eventually and we also have a son at college who is 16 we need money obviously to keep our rented house over our heads and feed us and son, pay bills and clothing and travel for son to college. The question is as my husband gets pension credit for us both, if I started a business I assume just my part of pension credit would be taken off? Not even sure about claiming working tax credit as I am disabled so would get disability element of it but how do I prove income that would alter from month to month or even take months to earn. Reliant on clients wanting the service?
As you can understand I cannot afford to be without money whilst building up the business
Thanks

poppasmurf_bewdley

Westie151 wrote: »

My husband is 67 and gets state pension and some pension credit. We have one dependant son. I get DLA I am starting a small business which is office based to do with genealogy As the earnings can take 3-4 months to come in from any clients., there is not guaranteed income. In this case where we still need to not lose the benefit that comes with pension credit as me and my husband rely on lots of prescriptions we could not afford straight away nor dentist and glasses etc. i do want to remove ourself from any assistance from the government eventually and we also have a son at college who is 16 we need money obviously to keep our rented house over our heads and feed us and son, pay bills and clothing and travel for son to college. The question is as my husband gets pension credit for us both, if I started a business I assume just my part of pension credit would be taken off? Not even sure about claiming working tax credit as I am disabled so would get disability element of it but how do I prove income that would alter from month to month or even take months to earn. Reliant on clients wanting the service?
As you can understand I cannot afford to be without money whilst building up the business
Thanks

As I'm sure you can understand, the taxpayer will not want to be subsidising you whilst you build up your business.

Murphybear

Westie151 wrote: »

My husband is 67 and gets state pension and some pension credit. We have one dependant son. I get DLA I am starting a small business which is office based to do with genealogy As the earnings can take 3-4 months to come in from any clients., there is not guaranteed income. In this case where we still need to not lose the benefit that comes with pension credit as me and my husband rely on lots of prescriptions we could not afford straight away nor dentist and glasses etc. i do want to remove ourself from any assistance from the government eventually and we also have a son at college who is 16 we need money obviously to keep our rented house over our heads and feed us and son, pay bills and clothing and travel for son to college. The question is as my husband gets pension credit for us both, if I started a business I assume just my part of pension credit would be taken off? Not even sure about claiming working tax credit as I am disabled so would get disability element of it but how do I prove income that would alter from month to month or even take months to earn. Reliant on clients wanting the service?
As you can understand I cannot afford to be without money whilst building up the business
Thanks

you don't pay for prescriptions once you are 60

GaleSF63

I assume you are not yet 60 if you are paying for (your own) prescriptions?

You can get a prepayment certificate (at your chemist) which will save you money if you need more than one prescription per month.

It costs £104 per year or about £30 for 3 months.

It's possible to make it last about 14 months. If you get prescriptions regularly at 2 month intervals, with a bit of adjusting you can get 7 lots with one certificate (get the 7th one slightly earlier) - then don't renew the certificate till just before the next prescription is due and you can do the same again.

McKneff

Can you look for and get a job while building up your business, even if it is only part time.


Charge your clients up front rather than wait 3 or 4 months for payment.

anmarj

Westie151 wrote: »

My husband is 67 and gets state pension and some pension credit. We have one dependant son. I get DLA I am starting a small business which is office based to do with genealogy As the earnings can take 3-4 months to come in from any clients., there is not guaranteed income. In this case where we still need to not lose the benefit that comes with pension credit as me and my husband rely on lots of prescriptions we could not afford straight away nor dentist and glasses etc. i do want to remove ourself from any assistance from the government eventually and we also have a son at college who is 16 we need money obviously to keep our rented house over our heads and feed us and son, pay bills and clothing and travel for son to college. The question is as my husband gets pension credit for us both, if I started a business I assume just my part of pension credit would be taken off? Not even sure about claiming working tax credit as I am disabled so would get disability element of it but how do I prove income that would alter from month to month or even take months to earn. Reliant on clients wanting the service?
As you can understand I cannot afford to be without money whilst building up the business
Thanks

Your husband would still be claiming as a couple, what would happen is that you would have send in details of your income/expenditure and a specialist decision maker would then work out what is allowable/not allowable (don't assume it is the same for HMRC, their rules are different) a weekly amount is then worked out. A disregard would be applied for the first £10 or £20 would apply if qualifies from the list below

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/446245/dmgch86.pdf

Disabled people
A disregard of £20 per week applies where a claimant or their partner
1. is in receipt of
1.1 long term IB1
1.2 SDA2
1.3 “AA”3
1.4 DLA4
1.5 mobility supplement5
1.6 the disability or severe disability elements of WTC6
1.7 ESA7
1.8 PIP8
1.9 AFIP9 or
2. is certified as severely sight impaired or blind by a consultant ophthalmologist10 or
3. has had an award of IS, ESA(IR) or JSA(IB) during the 8 weeks ending on the day they become entitled to SPC11 and



Reviews are done every year based on the previous years accounts. You may find while you are starting out they may want accounts from you a bit more frequently. Earnings are not part of any Assesed income period and are a reportable change. WTC is also taken into account as income as well

dktreesea

poppasmurf_bewdley wrote: »

As I'm sure you can understand, the taxpayer will not want to be subsidising you whilst you build up your business.

Not really helpful to the OP and in any one year the government subsidises hundreds of thousands of small businesses that don't make enough to support their owners. Universal Credit and the minimimum income floor maybe on its way but it certainly isn't here yet.


Why shouldn't the OP make use of the same funds if she is entitled to them?

poppasmurf_bewdley

dktreesea wrote: »

Not really helpful to the OP and in any one year the government subsidises hundreds of thousands of small businesses that don't make enough to support their owners. Universal Credit and the minimimum income floor maybe on its way but it certainly isn't here yet.


Why shouldn't the OP make use of the same funds if she is entitled to them?

Yes, fortunately Universal Credit is on its way, and this sort of abuse of the benefit system will be a thing of the past.

And I had no intention of being helpful to someone who basically wants us all to pay her whilst she builds up a business.

dodger1

poppasmurf_bewdley wrote: »

Yes, fortunately Universal Credit is on its way, and this sort of abuse of the benefit system will be a thing of the past.

And I had no intention of being helpful to someone who basically wants us all to pay her whilst she builds up a business.

Personally I don't have a problem with that as long as any benefits they receive stay the same as they are now. If the business turns out to be a success they may come off all their benefits. If the business fails, the tax payer hasn't lost out.

dktreesea

poppasmurf_bewdley wrote: »

Yes, fortunately Universal Credit is on its way, and this sort of abuse of the benefit system will be a thing of the past.

And I had no intention of being helpful to someone who basically wants us all to pay her whilst she builds up a business.

At least someone who is building up a business has a chance to come off benefits at a later stage.


The OP is just starting out. So why shouldn't she get the same support for her business that every other undercapitalised business without income support from the household (e.g. well paid spouse) gets?


If it's any consolation, most people starting up businesses get no help at all from the taxpayer, either because their savings are too high or they have other household income.


What I mind is people who tailor their business in such a way as to maximise their benefits, so deliberately don't grow their business. But that's not the OP's situation. To me that's a problem in general with benefits. People who look like they are doing all the right things to get a job, so apply for a lot and maybe even get interviews, but who really would prefer not to work, so doing enough to look for a job but never actually getting one.


Have faith. The minimum income floor plus a minimum start up period of 1 year before it's applied, is coming. Probably not by 2017 like the government is currently claiming, but it should be here before the end of the current parliament.