Pension credit and income

Oddjob

Hello, I'm not sure if this is the right place, please move if necessary.

I am semi retired, self employed, live on my own and don't get full pension as not enough stamps. At the moment, I work and claim working tax credits but my work has reduced and when the next tax year starts I will be struggling to do 16 hours a week to get my WTC.  I am being encouraged to stop working and claim Pension credit instead.

I am led to believe that as I don't get full pension, I would be entitled to my council tax paid too. 

I am on standard rate PIP. 

I would really like to do some work if possible as I enjoy what I do but am being led to believe that I would not be able to if I claim pension credit, is that true please?   

Thanks in advance.

xylophone

See https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf

calcotti

use a benefit calculator to check your entitlement https://www.gov.uk/benefits-calculators

if you get the Daily Living part of PIP, live alone and no one gets Carer's Allowance for looking after you then you will ge entitled to a Severe Disability Addition in your Pension Credit calculation. Pension Credit will then top your income up to £233.10/week. 

You can claim Pension Credit and work but you will need to inform DWP about your earnings and your Pension Credit will be reduced by whatever you earn. Financially there would therefore be no benefit working but this would give you the flexibility to do unpaid voluntary work instead if you wanted.

Council tax Reduction can be claimed from your local council. If you get Pension Credit you will be entitled to have your Council Tax paid in full by CTR. You may already have entitlement to some CTR.

If you rent your home you can also claim Housing Benefit.

Oddjob

calcotti said:

use a benefit calculator to check your entitlement https://www.gov.uk/benefits-calculators

if you get the Daily Living part of PIP, live alone and no one gets Carer's Allowance for looking after you then you will ge entitled to a Severe Disability Addition in your Pension Credit calculation. Pension Credit will then top your income up to £233.10/week. 

You can claim Pension Credit and work but you will need to inform DWP about your earnings and your Pension Credit will be reduced by whatever you earn. Financially there would therefore be no benefit working but this would give you the flexibility to do unpaid voluntary work instead if you wanted.

Council tax Reduction can be claimed from your local council. If you get Pension Credit you will be entitled to have your Council Tax paid in full by CTR. You may already have entitlement to some CTR.

If you rent your home you can also claim Housing Benefit.

Thank you very much for your help.  I spoke to someone from AgeUK but they said they had only dealt with one person who was self employed and wanted to carry on doing some work.  They said it was very complicated as the money would not be a set amount per week.  

It looks like it would be better if I didn't work, or just did an occasional job and declared it when I did it - or would I be better to just keep a record and declare it at the end of the year?  I already do a lot of voluntary work.  

calcotti

Oddjob said:

Thank you very much for your help.  I spoke to someone from AgeUK but they said they had only dealt with one person who was self employed and wanted to carry on doing some work.  They said it was very complicated as the money would not be a set amount per week.  

It looks like it would be better if I didn't work, or just did an occasional job and declared it when I did it - or would I be better to just keep a record and declare it at the end of the year?  I already do a lot of voluntary work.  

There is guidance in how self employment is treated in this document
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/721827/dmgch86.pdf
See paragraph 86200 onwards.