A Guide For Self-Employed People



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..Benefits...Benefits...Benefits... Housing Benefit and Council Tax Benefit A Guide For Self-Employed People Dartford and Sevenoaks working together to deliver Revenues and Benefits Services

Equal Opportunities Statement Dartford Borough Council and Sevenoaks District Council are committed to ensuring that no service user or customer is discriminated against on the grounds of gender, race, colour, ethnic origin, disability, sexuality or religion. Leaflets available: A Guide for Working Age People (Leaflet 1 WRK) A Guide for Pensioners (Leaflet 2 PNS) Can my claim be backdated? (Leaflet 3 BKD) Changes you need to tell us about (Leaflet 4 C/C) A Guide for Self-Employed People (Leaflet 5 S/E) Extra help towards your Rent & Council Tax (Leaflet 6 DHP) What do I do if I disagree with your decision? (Leaflet 7 APP) What happens when I have been paid too much? (Leaflet 8 O/P) A Guide for Landlords (Leaflet 9 L/L) Attending an Interview Under Caution (Leaflet 10 IUC) Obtaining Information (Leaflet 11 O/I) Can I ask someone to act on my behalf? (Leaflet 12 CIA) Housing Benefit changes for single people aged 25 to 34 who rent from a private landlord (Leaflet 13 U35) This leaflet is available in large print, please phone: 01732 227414. This leaflet can be explained in other languages please phone: 01322 343705 or 01732 227000. Please note that whilst every effort has been made to ensure that the details given in this leaflet are correct, the information should not be treated as an authoritative statement of benefit regulations. 2

Can I apply for Housing Benefit and/or Council Tax Benefit if I am self-employed? Yes, if your (and your partner s, if you have one) total savings are under 16,000. Savings below 6,000 are ignored for working age customers. Savings above 6,000 may reduce the amount of benefit you will get. Please note that if you have a partner both your savings will be added together and the same 6,000 rules applied. How will you work out whether I am entitled to Benefit? We decide whether or not you are entitled to Housing Benefit and/or Council Tax Benefit based on your and your partner s income, savings and personal circumstances. Complete a Housing Benefit and Council Tax Benefit application form and send us your latest audited business accounts or the accounts you provide for HM Revenue & Customs - we will need to see originals as proof of your self-employed earnings. What do I do if I do not have audited accounts? If you do not have audited accounts or they are not up to date, fill in a Self-Employed Earnings Certificate and send it to us. We will work out your weekly earnings (after tax and National Insurance) from your business and add this to any other income you and your partner receive. What if I have not been trading for a full year? If you have not been self-employed for a full year, complete a Self-Employed Earnings Certificate. This asks you for the income received, expenses incurred and details of the trading period. Please note that Self-Employed Earnings Certificates are availble from Council offices or on-line. 3

What if my trading position has changed since the accounts were audited? We will use your latest accounts as these usually provide an accurate picture of your trading position. However, if your business activity has changed significantly since these were audited, it may be possible to work out your benefit using more recent figures if you can provide sufficient evidence to support them. Please contact us to discuss the evidence we would require. You must still send us an original set of your accounts with your completed Housing Benefit and Council Tax Benefit application. How will you work out my earnings? To work out your weekly earnings for benefit, we first need to work out your business profit before tax. We will deduct any amounts you have had to spend to run your business (we do not deduct any personal or household expenses or savings). We then work out your weekly income based on this and deduct tax, National Insurance and 50% of any private pension contributions you make, to give us the amount we need to work out your benefit. Please note that we are unable to accept your Tax Return as proof of your self-employed accounts. What about my savings and personal expenses? When we work out the profit of your business, we will add back in any savings you take from the business or any household or personal expenses you pay from the business. We work out your weekly earnings for benefit purposes using your share of the profit of the business. 4

Business Partnerships If you are employed in a partnership your net weekly earnings (after tax and National Insurance) will be based on your share of the business profit. Self-employed childminders If you are a self-employed childminder we will use one third of your gross earnings to work out your benefit entitlement. No expenses are taken into consideration. What can I do if I disagree with your decision on application for Housing and/or Council Tax Benefit? If you disagree with our decision, you can ask us to look at it again. Our letters tell you what your rights are. For more information see our leaflet What do I do if I disagree with your decision (leaflet 7 APP). 5

6

iwhere can I get help? You can always phone us for help and advice. For details visit our website www.dartford.gov.uk or www.sevenoaks.gov.uk or see the back of this leaflet. You could also contact or visit the following: Dartford Citizens Advice Bureau Trinity Resource Centre, High Street, Dartford DA1 1DE Call: 01322 472979 Edenbridge & Westerham Citizens Advice Bureau 68 High Street, Edenbridge TN8 5AR Call: 01732 865131 Email: Edenbridge@cabnet.org.uk Sevenoaks & Swanley Citizens Advice Bureau Buckhurst Lane, Sevenoaks TN13 1HW Call 01732 456100/01732 454443 Email: info@sevenoaksdistrictcab.org.uk 16 High Street, Swanley BR8 8BG Call: 01322 610000 Email: info@sevenoaksdistrictcab.org.uk Shelter Kent Housing Aid Bull Yard, High Street, Ashford TN24 8SN Call: 0344 515 1444 Email: ashford@shelter.org.uk Shelter Kent (North) Housing Aid 12-16 Ordnance Street, Chatham ME4 6SL Call: 0344 515 1740 Email: medway@shelter.org.uk 7

If you have any questions about your Housing Benefit or Council Tax Benefit Phone us on: 01322 343705 (Dartford) 01732 227000 (Sevenoaks) A service is available for minicom users on: 01732 227496 (for textphone users only) Write to us at: Benefit Services, Dartford Borough Council Civic Centre, Home Gardens, Dartford, Kent DA1 1DR Benefit Services, Sevenoaks District Council PO Box 102, Argyle Road, Sevenoaks, Kent TN13 1GT E-mail us at: benefits@dartford.gov.uk benefits@sevenoaks.gov.uk Visit our main offices at the following times: Dartford Monday - Thursday 8:45am to 5:15pm Friday - 8:45am to 4:45pm Sevenoaks Monday - Wednesday 8.45am to 5.00pm Thursday 9.30am to 5.00pm Friday 8.45am to 4.45pm For appointments at our Edenbridge, Swanley & Hartley surgeries please call 01732 227000 What if I want to comment on your service? Please get in touch with us. We would like to know what you think. Information on how we deal with comments about our services is available on our websites: www.dartford.gov.uk or www.sevenoaks.gov.uk Leaflet 05 - June 2012 8