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Top Pension Credit topic #1067

Subject: "Self emloyed earnings" First topic | Last topic
mkwrg
                              

Caseworker, Milton Keynes Welfare rights group
Member since
03rd Oct 2007

Self emloyed earnings
Wed 31-Oct-07 12:17 PM

Cl 70=, musician who hasnt done a gig for over 3 mnths although worked regulary up until that time.Am trying to find out how PC asesses his self employed earnings.
Have looked at Social security regs 1996 Compulation of earnings but cant find out how his earings are assessed or if they take into account his change in working pattern, if so how?
Help!!

  

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Replies to this topic
RE: Self emloyed earnings, ariadne2, 01st Nov 2007, #1
RE: Self emloyed earnings, Rob_Price, 09th Nov 2007, #2

ariadne2
                              

Welfare lawyer and social policy collator, Basingstoke CAB
Member since
13th Mar 2007

RE: Self emloyed earnings
Thu 01-Nov-07 09:19 PM

If you remain self-employed, working patterns are irrelevant: most small business are very erratic as sources of income. The averaging over the annual profits is the way of smoothing out the irregularities. If things have got so bad that it is arguable he is no longer in fact self-employed, he could claim that this is the case, abandon the "business" and just claim benefits on that basis. All the means-tested beenfits are poorly structured for dealing with erratic earnings from self employment which is hence a bad idea if you might ever need to rely on benefits!

  

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Rob_Price
                              

Principal Welfare & Income Officer, Shropshire County Council
Member since
02nd Dec 2004

RE: Self emloyed earnings
Fri 09-Nov-07 03:42 PM

The DWP's DMG gives some guidance on, first of all, deciding if the client is still self employed. There are a series of Qs to be considered at paragraph 15476 in the link below, such as 'Is there a reasonable prospect of work?' and 'Are they engaged in any work-related activities' (such as practice or rehearsal)?

If they are still considered to be s/e, then has there been an interruption to the normal pattern of work (eg closure of venue, illness of fellow musician)? If so, an assessment of income should start from the date of change- see para 15495.

This is the relevant chapter in DMG:

http://www.dwp.gov.uk/publications/dwp/dmg/

  

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