Newly self employed - is there any help for me?

pusskatyo

Hi. Bit of background.
I left full-time employment this time last year - I wouldn't have if I knew what was coming, but hey. I started developing my own business as a virtual assistant, just part-time. In Jan to March I had a short in-house contract job, when that ended I started another part-time in house contract that ended in September. With no other contracts lined up I've been doing very ad-hoc work, basically barely earning anything, maybe £500 since September. I have no tax returns or any evidence of turnover, so not eligible for SEISS or anything else as far as I know. I thought I might have a chance at a bounce-back loan with my bank Santander, but if you just have a current account (not business) then they ask for a 2018/19 tax return - which I don't have obviously.
I joined up with Starling as they said they take new customers - I have now got a current and business account with them - with nothing going in at present. I'm on their 'interested' list for a bounce-back loan, but I don't hold out much hope as they're prioritising more active customers.

Does anyone know if I can access funds from anywhere at all? If I took on jobseekers allowance, then I'd have to be actively looking for employed work and I'm at home with 2 kids and trying to get my own business going. My partner lives with us and earns a good wage so we're not entitled to any benefits I don't think. 

pmlindyloo

How old are your children?

pusskatyo

pmlindyloo said:

How old are your children?

Not little anymore 13 and 9.

Jeremy535897

The bounce back loan scheme has been extended to 31 January, so something may come of your application, although it's unlikely to be much (minimum £2,000).

Mrsn

Have a look at one of the benefit entitlement calculators such as entitled to or turn2us anyway just to clarify if or why help you may be able to get. 

You are right though with JSA you will be expected to search for work as part of the claimant commitment. They had originally stopped the requirements but they were reintroduced a little while back.

calcotti

Universal Credit is most likely to help but you cannot claim if you have capital over £16,000. However if you receive Tax Credits these would stop if you make a claim for UC (even if it then turns out you are not entitled to anything) in which case claiming UC may not be best for you.

pusskatyo

calcotti said:

Universal Credit is most likely to help but you cannot claim if you have capital over £16,000. However if you receive Tax Credits these would stop if you make a claim for UC (even if it then turns out you are not entitled to anything) in which case claiming UC may not be best for you.

Silly question maybe, but what is classed as capital? I have money in the bank that is an extension on our mortgage to complete work on the house - is that capital? We don't get any tax credits. 

calcotti

pusskatyo said:

calcotti said:

Universal Credit is most likely to help but you cannot claim if you have capital over £16,000. However if you receive Tax Credits these would stop if you make a claim for UC (even if it then turns out you are not entitled to anything) in which case claiming UC may not be best for you.

Silly question maybe, but what is classed as capital? I have money in the bank that is an extension on our mortgage to complete work on the house - is that capital? We don't get any tax credits. 

Not a silly question at all. Yes, unfortunately it is capital and the fact you've borrowed it to fund building work may not be taken into account. There is a potential six month disregard as set out below:

H2123 Where, in the past 6 months, a person has acquired a sum of money by way of a loan, grant or otherwise which is to be used for making essential repairs or alterations to premises occupied or intended to be occupied as the person’s home, that amount can be disregarded from the calculation of that person’s capital but only where it is used for that purpose.
H2124 The DM may decide it is reasonable to disregard the grant, loan or otherwise for a longer period if the repairs and alterations will take more than 6 months. 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/932331/admh2.pdf

Obviously if your intention is to make 'cosmetic' alterations or to build an extension that may not be considered to fit the description of 'essential repairs or alterations'. The only way to find out is to apply, provide all the details and wait for a Decision maker to decide.

gary83

pusskatyo said:

calcotti said:

Universal Credit is most likely to help but you cannot claim if you have capital over £16,000. However if you receive Tax Credits these would stop if you make a claim for UC (even if it then turns out you are not entitled to anything) in which case claiming UC may not be best for you.

Silly question maybe, but what is classed as capital? I have money in the bank that is an extension on our mortgage to complete work on the house - is that capital? We don't get any tax credits. 

You could potentially apply for that to be disregarded, when did that money get deposited in your bank?

Where, in the past 6 months, a person has received a sum of money by way of a loan, grant or otherwise which is to be used for making essential repairs or alterations to premises occupied or intended to be occupied as the person’s home, that amount can be disregarded from the calculation of the claimant’s capital but only where it is used for that purpose.

It is reasonable to disregard the grant, loan or otherwise for a longer period if the repairs and alterations will take more than 6 months.

http://data.parliament.uk/DepositedPapers/Files/DEP2019-0465/Capital_disregards_v11.0.pdf

calcotti

Do please try a benefit calculator as previously advised by Msrn. https://www.gov.uk/benefits-calculators

pusskatyo

calcotti said:

Do please try a benefit calculator as previously advised by Msrn. 

Hi, thanks everyone for their advice. Unfortunately, the money I have in the bank for repairs to the house were borrowed more than 6 months ago - because with the last lockdown we couldn't get the work scheduled in - typical! So it is classed as capital. 
I went to the Citizens advice and we worked out that even with that capital, I'd be entitled to about £60 a month because of partner wages. The only other option to me is JSA, so I've had to go down that road. Hopefully, a suitable job will turn up in the meantime.