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  • FIRST POST
    • stevnp
    • By stevnp 9th Jul 18, 12:02 PM
    • 10Posts
    • 1Thanks
    stevnp
    Help, Housing Benefit self employed
    • #1
    • 9th Jul 18, 12:02 PM
    Help, Housing Benefit self employed 9th Jul 18 at 12:02 PM
    Hi, I'm not quite sure what's going to happen, but my situation is this.

    I'm self employed, on DLA and WTC. I'm in receipt of HB and CTB and it is paid based on the previous year's income. So far so good.

    I contacted Housing benefit and said that I would be earning more in 2017-2018 than the previous tax year and was told it would be sorted out at year end.

    However my earnings in 2018-2019 have dropped back to less than the level of 2016-2017.

    I assume the overpayment will be collected from the HB paid from April 2018, but won't that be based on the higher income of 2017-2018 which I'm no longer receiving?

    Also I send in my self assessment returns to HMRC by January 31st, can I wait until then until to give final profit to Housing benefit? Don't HMRC/WTC and HB all communicate with each other anyway? HB had all my figures without my sending them any last year, and worked out my HB from that.

    The only other option I have is to try to minimise my profits for 2017-2018.

    I didn't employ an accountant because my earnings were so low, but it would appear things like capital allowances, even for things that are essential for me to run my business are not allowed for HB purposes. If I were allowed to bring in one item under capital expenditure, even though not actually purchased during the tax year, the situation would be resolved. ( I think that is allowed once if it is split over a number of years, at least as far as tax is concerned)

    I'm concerned I may wind up with low income and no HB or CTB this year because of the way this system works.

    Any ideas and help would be appreciated
Page 1
    • pmlindyloo
    • By pmlindyloo 9th Jul 18, 12:46 PM
    • 11,902 Posts
    • 13,760 Thanks
    pmlindyloo
    • #2
    • 9th Jul 18, 12:46 PM
    • #2
    • 9th Jul 18, 12:46 PM
    You ned to read this:

    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/236962/hbgm-bw2-assessment-of-income.pdf

    W2.330 onwards

    and then speak to the council.

    It might be that you an have a different assessment period as regards your earnings as they appear to fluctuate. The calculation for self employed earnings are also in the link (scroll down from W2.330)

    If you are receiving council tax reduction then you also need to speak to them about your situation.
    • stevnp
    • By stevnp 9th Jul 18, 1:42 PM
    • 10 Posts
    • 1 Thanks
    stevnp
    • #3
    • 9th Jul 18, 1:42 PM
    • #3
    • 9th Jul 18, 1:42 PM
    Many thanks for your information. I'll look into this and contact the council.

    I think I'll need to have them work out my HB and CTB based on this year's earnings. and supply them with information since April 6th 2018 explaining the situation.
    • Nannytone
    • By Nannytone 9th Jul 18, 5:48 PM
    • 135 Posts
    • 223 Thanks
    Nannytone
    • #4
    • 9th Jul 18, 5:48 PM
    • #4
    • 9th Jul 18, 5:48 PM
    Housing Benefit and Council Tax support are not calculated using yearly income figures. They are based on real time and what you are earning week to week and month to month/B]
    • tboo
    • By tboo 9th Jul 18, 6:41 PM
    • 742 Posts
    • 4,152 Thanks
    tboo
    • #5
    • 9th Jul 18, 6:41 PM
    • #5
    • 9th Jul 18, 6:41 PM
    Housing Benefit and Council Tax support are not calculated using yearly income figures. They are based on real time and what you are earning week to week and month to month/B]
    Originally posted by Nannytone



    No it's not, it's dependant on lots of things, how long you have traded, if there has been a material change later to increase/decrease profit etc etc



    For example


    another
    Started on the No Clutter thread - 25/01/2018
    Youre only here for a short visit. Dont hurry, don't worry and be sure to smell the flowers along the way. Walter Hagen
    Mortgage free 2/07/18. 9 years early

    • Afraid of Kittens
    • By Afraid of Kittens 10th Jul 18, 11:04 AM
    • 152 Posts
    • 161 Thanks
    Afraid of Kittens
    • #6
    • 10th Jul 18, 11:04 AM
    • #6
    • 10th Jul 18, 11:04 AM
    Housing Benefit and Council Tax support are not calculated using yearly income figures. They are based on real time and what you are earning week to week and month to month/B]
    Originally posted by Nannytone
    With the self employed we use the previous years self employed income to calculate the coming years benefit. Weekly or monthly fluctuations of self employed income are not taken into account as this would be part of the general trading.

    Some circumstances we may recalculate self employed income (such as the loss of a major contract resulting in a substantial drop in income - or the award of a major contract where there is a substantial increase in income).

    We do not use the figures supplied to HMRC. Some of the outgoings allowed by HMRC are not permitted when calculating income for HB purposes.
    • stevnp
    • By stevnp 11th Aug 18, 1:05 PM
    • 10 Posts
    • 1 Thanks
    stevnp
    • #7
    • 11th Aug 18, 1:05 PM
    • #7
    • 11th Aug 18, 1:05 PM
    Thanks for the replies, and an update.

    As some of you correctly said, it is based on the PREVIOUS year's income. So the income increase did not result in a HB and CTB overpayment for 2017-2018, thank goodness. It just means that these two benefits are lowered 2018-2019 and I have to make up the shortfall.
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