Hi,
As many self employed people do not have the same income or expenses every month, I am wondering how housing benefit for example would be calculated.
If in someones first tax year they started in September, they would have X amount by April.
Would the council look at the amount HMRC declared was profit and taxed the person on, see that overall they earnt enough to be entitled to X amount and go from there.
So one month during benefit a person may get £1000 profit and the next £100. During September to April they only made £3000 in profit in total meaning they earnt £375 PCM if you divide it and therefore was entitled to what they had been paid OR would they want a monthly breakdown, notice that some months the person had earnt too much and ask for that months benefit back and say the next month they earnt too little and therefore that month was fine?
Just a bit confused as to how they would calculate it as inn 3 months you could earn all your profit, then do really bad the rest of the months and not earn anything but that profit is needed to keep you going for the rest of the months. I do not know if they calculate it like that or simply say months you earnt enough you don't get anything and months you didn't you get your entitlement.
Thanks
As many self employed people do not have the same income or expenses every month, I am wondering how housing benefit for example would be calculated.
If in someones first tax year they started in September, they would have X amount by April.
Would the council look at the amount HMRC declared was profit and taxed the person on, see that overall they earnt enough to be entitled to X amount and go from there.
So one month during benefit a person may get £1000 profit and the next £100. During September to April they only made £3000 in profit in total meaning they earnt £375 PCM if you divide it and therefore was entitled to what they had been paid OR would they want a monthly breakdown, notice that some months the person had earnt too much and ask for that months benefit back and say the next month they earnt too little and therefore that month was fine?
Just a bit confused as to how they would calculate it as inn 3 months you could earn all your profit, then do really bad the rest of the months and not earn anything but that profit is needed to keep you going for the rest of the months. I do not know if they calculate it like that or simply say months you earnt enough you don't get anything and months you didn't you get your entitlement.
Thanks