Self employed

If you’re self employed and want to claim housing benefit or council tax support, we need to look at your total net weekly income from your self employed earnings and any other income or capital you have.

How is self employed income assessed?

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We work out the net profit from your total income. 

Your gross income minus any allowable business expenses is your pre-tax profit.

Then we subtract national insurance and half of any pension contributions. This gives us your net profit. This may not be the same as the figure from HM Revenues and Customs.

Allowable expenses are the reasonable expenses of running your business.  For example:

  • Rent and water rates on business premises
  • Gas, electricity and other fuel costs on business premises
  • Telephone charges
  • Advertising
  • Postage and stationery
  • Legal and accountancy fees
  • Buying stock and supplies
  • Business-only motor expenses

HM Revenues and Customs allow some expenses that we can’t allow when working out benefits, such as:

  • Depreciation
  • Capital expenditure
  • Business entertainment

We use the same guidelines if the business partners are a couple. This ensures that we calculate the deductions for tax and national insurance correctly.

No. We don’t take into account any business expenses for self employed childminders.  Instead we work out net profit by subtracting tax, national insurance contributions and half of your pension contributions from one third of your gross income.

  • An audited set of your latest accounts

Or, if these are not available:

If you have only just started your business, you’ll need to estimate your initial income and expenditure figures.  If we use an estimated figure to assess your claim, we’ll write to you again for actual income and expenditure figures.