Employed AND self-employed - HB calculation

I have a client who is part-time employed and part-time self-employed. He was previously fully self-employed and getting HB.

Local authority has stopped HB and is insisting on treating him as employed (their system doesn’t seem to cope with someone being in both categories at once) and refusing to disregard self-employed business expenses.

Can anyone provide references to show how HB should be calculated in this situation or the best way to challenge the LA?

I think the best way to challenge the “decision” is just to appeal ( don’t bother trying to argue with them or ask for a revision- you would probably be just wasting time)

You only need to argue that common sense dictates that there is no reason to supppose that a person cannot be employed and carrying out services subject to the direction and control of another ( i.e an employee) at times during any given week and also be carrying out other activites at different times when there is no relationship of subordination regarding working condtions or remuneraton i.e self employment ( See Jany (C-268/99) re EU definition of self employment)

I know the context is different, but Judge Jacobs held at paragraphs 7-8 of Secretary of State for Work and Pensions v JB (JSA) [2011] UKUT 96 (AAC) CJSA/1936/2010

7. There is in principle no reason why a person may not have a right to reside on a number of bases. A person who is a worker may also have a permanent right to reside. Each member of a couple who are both working has a right to reside both as a worker and as a family member of the other. And so on. For immigration purposes, this may be of no significance. However, it is potentially of significance for the purposes of benefit entitlement.

8. There is, therefore, no reason why a claimant who remains in self-employment may not rely on that status for the purposes of a claim for a jobseeker’s allowance while seeking employment as a worker.

You can argue that JB is by analogy an authority that you could rely on

Your clients employed earnings should be calculated in accordance with Housing Benefit Regulation 36. Self employed earnings are then calculated in accordance with Regulation 37 and the two are then aggregated
 

itsa worth noting that a loss from self emploiyed income is treated as having £0 income for HB purposes - we cannot offset the loss from self employment against the earnings
so if your chap is working 12 hrs at £10 p/hr, his earnings would be £120.00 per week - if he is making a loss from his self employment, his income from that would be £0 - so his total income would be from earnings/self employment would be £120 per week

lots of customers have more than one job, no reason at all why the systems cant cope with it - but they are treated a separate incomes.