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Advice needed - moving from ESA to Working Tax Credit


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Hi

 

I have been on ESA for 3 years and now want to become self employed. However, my projected earnings will only be around £60 per week. So, I will need to continue to claim Housing Benefit as my rent is high,

 

What is the correct procedure I should follow so that there is no break in my claim for housing benefit? Should I call the DWP first or HMRC? Or the council?

 

I am very worried and anxious about this as I cannot afford to have a break in my housing benefit.

 

I would be very grateful for any advice,

 

Many thanks and kind regards

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Sadly If your income is going to be only £60 a week I think you're going to fall foul of the Inland revenue as they demand these days that you must be taking home a profit of at least the national minimum wage (£6.08) times the number of hours you're declaring, so in your case that would be £97.28 after all expenses.

 

Otherwise I think you'll find they'll jump on you and demand a full repayment further down the line like have done to so many other low paid self employed this past year or so. Have a look at the HMRC and minimum wage section of this site to see what I mean.

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as soon as you decide to start your sixteen hours ring ESA

they will close your claim,

pay you the jobgrant and put a marker on your claim to tell the LA to pay the four week housing benfit run on..

 

phone the LA after ESA and tell them your change of circumstance and you want to claim Income Bases HB, hopefully it will be up and running before the run on ends..

 

also ring tax credits and make your claim to WTC or apply online

 

as you are going to be earning so little have you thought of permitted work whie you build the buisness up.

you would have to work under 16hrs but check this out

 

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Illorinjured/DG_171909

Edited by MIKEY DABODEE
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Sadly If your income is going to be only £60 a week I think you're going to fall foul of the Inland revenue as they demand these days that you must be taking home a profit of at least the national minimum wage (£6.08) times the number of hours you're declaring, so in your case that would be £97.28 after all expenses.

 

Otherwise I think you'll find they'll jump on you and demand a full repayment further down the line like have done to so many other low paid self employed this past year or so. Have a look at the HMRC and minimum wage section of this site to see what I mean.

 

Yet, I've been told not to expect to make that much (if any) of a profit in my first year.

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Oh I know, but It seems the tax office have targets to get as many low self employed earners off TC as they possible can. Another Cameron clampdown I fear. Go and have a look in the tax section and you'll see what i mean.

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Sadly If your income is going to be only £60 a week I think you're going to fall foul of the Inland revenue as they demand these days that you must be taking home a profit of at least the national minimum wage (£6.08) times the number of hours you're declaring, so in your case that would be £97.28 after all expenses.

 

Otherwise I think you'll find they'll jump on you and demand a full repayment further down the line like have done to so many other low paid self employed this past year or so. Have a look at the HMRC and minimum wage section of this site to see what I mean.

 

Thanks everyone for your replies. I have been on the HRMC website, and I cannot find this section. Can you please let me know the web page address?

 

Many thanks.

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Thanks Mikey. That article is about a crackdown on tax credit fraud. I have been doing some reading and it appears that there is some sort of "floor" that sets the minimum wage that must be earned if you are self employed. Is this now in force? I cannot see how it can work. My income will go up and down on a daily basis. There are bounds to periods when it will be well below the floor being set by the govt.

 

Is this what sadone was referring to?

 

Many thanks

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Have a look at the kind of cases I'm talking about on this thread on the CAB forum....

 

http://www.rightsnet.org.uk/forums/viewthread/1956/

 

I also recommend looking at other threads in that section too to get a clearer picture of the kind of game the Inland Revenue's playing at the moment.

Edited by sadone
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