Starting Work and Tax Credit Advice

A question about : Starting Work and Tax Credit Advice

Hi,

I am currently helping a 30 year old single man in my area who has recently become self employed, he has registered to be self employed and is currently in receipt of housing benefit. This covers rent and council tax based on his earnings of around Ј100 per week, sometimes a little more and sometimes a little less if he has had good/bad weeks. He has a small sales business which works throughout the year, this is selling products which he has purchased from a wholesaler.

Because of him being self employed I have asked him to make sure he keeps records of his receipts to keep accurate records, as well as more importantly to recieve HB/CT Housing Benefit.

I am also aware he will have to pay a small NI contribution, is this correct ?

As he is earning around Ј100 I know he wont need to pay income tax.

I have advised due to his earnings and circumstances he should claim for working tax credits, this will be a nice little top up for his income he has coming in, how should he declare this to his housing benefit provider and what will happen with his housing benefits and what can he expect if he does this. His tennancy as he has a history of long term homelessness is vital, what would be the best advice for maintaining this tennancy and how should he manage his claim/hbenefit in a legal and fair way ?

Would he get also a back to work bonus ?

Thanks in advance advisors, this would be really helpful if I could get some advice and any advice on things/situations to be careful of. I dont want to set this man up to be in difficulties.

Thanks

Tom.

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