You can apply for Housing Benefit and Council Tax Rebate if you or your partner are self-employed. We will work out your benefit using your and your partner’s income, savings and personal circumstances. In order for us to assess your earnings you must fill in a self-employment form as well as the benefit application form.
How Will You Work Out My Benefit?
As you are self-employed we must work out your weekly earnings (after tax) from your business and add this to any other income, which you and your partner receive. We will add back in any savings you take from the business or any household or personal expenses that you pay from the business.
To assess your claim your latest original audited self-employed accounts are preferred, as these will give an accurate picture of your income and profit. However if your self-employed earnings have decreased it may be possible to work out your benefit using the latest figures you have. The council also will require that the self-employed earnings form be completed as well as the audited accounts.
What Happens If I Do Not Have Audited Accounts?
If you do not have any prepared accounts we also need to ask you about your business expenses and earnings. There is a section on the self-employed form for you to disclose this information.
If you have not been trading for a full year, we need you to give us the information for the time since your business started up to current day.
How Will You Work Out My Earnings?
To work out your weekly earnings for benefit purposes the first step is to work out your gross profit. From the gross profit, we need to work out your business profit before taxation. We will subtract any expenses you have incurred due to the running of your business. Below is a list of typical expenses, which are allowable. (Please note that this list is not exhaustive and the council may wish you to provide additional proof of your expenses. For further information you should contact the council office.)
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Staff costs
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Rent, rates and mortgage payments on the business premises
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The purchase of stocks and supplies
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Fuel costs
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Cleaning and protective clothing
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Transport connected with the business
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Advertising, telephone, postage and stationery
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Carriage and delivery costs
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Hire and leasing charges
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Legal and accountancy fees
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Bank charges
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Insurance
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Subscriptions to trade and professional organisations
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Interest on business loan
We do not subtract any personal or household expenses or savings. We also do not take away the cost of buying or improving fixed assets in the business.
We will then work out your weekly income based on this and take away Income Tax, National Insurance and 50% of any private pension contributions. The figure that is left is what is used as your weekly income. To calculate your weekly benefit entitlement we will also include any other income as well as your net profit described above.
Visit the HM Revenue & Customs| website for further information.
Self Employed Form| - Complete and return this form along with the Housing Benefit and Council Tax Rebate Form|
Last Modified: Tuesday 27 March 2012