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Benefits and running my own business

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  • Benefits and running my own business

    My name is Julie & I have just registered for this forum via a recomendation from my daughter.
    A little about me:
    I am currently on higher rate disability and incapacity benefit, with no possibility of me ever going back OUT to work again as my condition is degenerative and very painful.
    I have always liked doing various crafts, and now both myself and my daughter have decided to make & sell bridal jewellery, tiara's, table centre pieces, and favour boxes etc.
    We are aiming to sell over the internet on our own website and at wedding fayres.
    My questions are as follows:
    1) I have read that you must register as self employed with the tax office within 3 months, but is that 3 months from making your 1st sale or 3 months from when we start actually making and marketing our products ?
    2) Will I lose my disability benefit ? I will still be disabled, and I am doing this so I don't crack up with boredom more than anything and as always the extra money will help no end.
    3) Will I automatically lose my incapacity benefit? will I not be classed as incapacitated if I start expanding my hobby into a business ?

    sorry a few questions there, but I need to be absolutley sure of everything before I take the real plunge, I can't afford to lose these benefits before I start making enough money to replace them as my benefits pay my mortgage.

    Thank You in anticipation


  • #2
    I cannot answer your questions today, however I am having a meeting with CAB next week as I too am on benefits and worried about registering as self employed. I work very closely with bereaved people and really love what i do. I dont make huge amounts out of what i do but it gives me some peace after a loss of my own so really don't want to stop.

    you could ring CAB yourself.. I would certainly start there (well i am put it that way)..

    also check out the Inland revenue web site there is quite a lot on there..

    Hope that is a little helpful, but i will get back to you after my CAB meeting

    Regards Caron x
    Concentrating on Bereavement;
    Because Memories Matter...

    My BLOG;

    Join me on facebook;

    coming soon too


    • #3
      Hi ya Julie, I can't answer all of your questions, but I can do a few!

      I'm on Incapacity and higher rate motability too. I wanted to have a go at alterations, same as you, to keep active. I phoned up my local benefit office and they were really helpful (Honest!!) Basically, if I remember rightly, you can work 20 hours a week and earn about £20 (I can't remember the exact details) BEFORE it affects your incapacity - nothing will affect your motability unless you suddenly get dramatically more mobile!

      I started in Febuary, phone and notified the benefits office and they sent me a form to fill in, telling them what I was doing, etc. I put myself down as self employed and THEY got in touch with th tax people. They send a timesheet out every month or so, with an SAE, and they work out the rest.

      Mine didn't go very well and I quit after having to send back a blank form more than twice - unfortunately, I did have to fill in my first ever tax form and declare that I had earned a grand total of £9!! I phoned the tax office and both me and the bloke on the other end were laughing!

      If you do go over your monthly limit, you don't lose all of your incap, they adjust it to take in your earnings. So if you have a good month, followed by a bad month, it gets taken in to account.

      I can't garantee that I've got everything right but, like I said, they're very good in helping cos let's face it, if you're massively sucessful, that's one less they have to look after!

      Hope that helps!


      • #4
        Thank you so much Caron & Debbie for your advice.

        I really must get my butt into gear and start sorting this out properly.
        I have been busy buying an internet web address and email addy, and trying to get my head round designing a website, and making as much stuff as I can, so I can get a collection together, and hopefully we will start marketing & selling after Xmas.

        I will keep you posted on my progress

        Thanks again Julie.


        • #5
          As for the benefits side of things I am not qualified to give an exact answer but disability and motability should not be effected, Incapacity might but depending on the hours that you do..of course your daughter maybe doing most of the work (wink) and you won't go over your 20 hrs per week.
          On the self employment bit you need to register within 3 months of you starting your activities with your business, not your first sale. But remember as per the guidlines that for the 6 months prior to going self employed you can reclaim (tax deductable) any equipment of neccessary expenses in order to get up and running...So go find those receipts, no matter how small they are, it all counts.
          I Melt Glass For a Living


          • #6
            One way to not be affected by most of the possible problems would be to make sooo much money that it wouldnt matter.
            2 of my sons got married this year and i can say that there is a lot of money to be made.
            best of luck.
            make us all help you.
            it cant hurt us can it?