HB & CTR For the self-employed & Small Business Owners

 2 x Half Day Workshops 

(Attend either or both Half Day Workshops depending on your training requirements for this topic)

1. HOUSING BENEFIT FOR THE SELF-EMPLOYED 

Half Day ONLINE WORKSHOP:

Tuesday, 9th November, 2021.

Half-Day Workshop (1:15 - 4:30/4:45) 

2. HOUSING BENEFIT FOR SMALL BUSINESS OWNERS (COMPANY DIRECTORS)
Half Day ONLINE WORKSHOP

Tuesday, 9th November, 2021.

Half-Day Workshop  (1:15 - 4:30/4:45) 

Workshop Fee: £125  + VAT each topic .  

1. HOUSING BENEFIT FOR THE SELF-EMPLOYED 

Half-day online Workshop. We suggest combining this event with our half-day workshop on owners of small limited companies for comprehensive coverage of claimants who run their own business.

Whether you are looking for an introduction to the key principles of assessing self-employed earnings, or you are a more experienced officer looking for a refresher, this workshop will provide simple but wide-ranging commentary on the complete end to end process of identifying a self-employed claimant, choosing an appropriate period of past activity from which to estimate likely future income, verifying the claimant’s declarations and calculating net earnings from the claimant’s accounts or other records. We will also look at the impact of the Covid-19 pandemic on self-employed claimants, including grants and loans under the government’s different support scheme.

The session begins by clarifying exactly what it means to be self-employed: how tax and national insurance are paid, using a “trading as” business name, liability for debts or accidents etc. We will contrast self-employment with being the sole owner/director of a limited company, which is the other way that people, including benefit claimants, earn a living by running their own business.

Once we are satisfied that our claimant is self-employed, the next step is to select an “assessment period” of past earnings, which will form the basis of our estimate of the claimant’s income going forward. Should this always be the period to which the claimant’s most recent accounts apply? What if the claimant has not been working long enough to have a set of accounts yet? What about seasonal work, and especially how should we account for the Covid-19 pandemic which means that the claimant’s recent business history might not be typical?

Self-employed claimants are usually asked to provide accounts, but should we ask for additional evidence to demonstrate that what the accounts say is true? What sort of evidence might we ask for that is reasonably easy for the claimant to obtain and for us to process?

Next, we look at the rules governing the income and expenses of self-employed claimants, especially which expenses can be deducted from the gross turnover. Many self-employed benefit claimants have received support from one or more of the grant and loan schemes established during the pandemic and we will consider the correct way to deal with these items as both income and capital.

We also consider when self-employed earnings assessments should be reviewed, and whether it is ever necessary to reassess earnings retrospectively (whether to the claimant’s advantage or disadvantage): how do the grounds and time limits for revision and supersession work in relation to self-employed earnings?

Finally, there will be a brief summary of the differences between HB, CTR and Universal Credit where self-employed earnings are concerned, especially the Minimum Income Floor and how the reintroduction of this measure alongside the easing of Covid-19 restrictions affects claimants. 

2. HOUSING BENEFIT FOR SMALL BUSINESS OWNERS (COMPANY DIRECTORS)

Half-day online Workshop. We suggest combining this event with our half-day workshop on self-employed earnings for comprehensive coverage of claimants who run their own business

Assessing the income and capital of a claimant who owns and runs his/her own limited company is often cited as one of the most difficult topics for benefits staff to understand. At first sight, many owner/directors draw a small salary and have no other visible personal earnings or capital, but is it always correct to assess HB and CTR on just this salary? In this workshop we will look at the different ways in which company owner/directors receive income: earnings, dividends, loans and repayment of debt. We will also consider when it is appropriate to take into account the value of the claimant’s shareholding as capital and when to disregard it.

The session begins by clarifying exactly what it means to be a company owner: the different roles of shareholder and director, liability for debts and accidents etc. We will contrast company ownership with being self-employed, which is the other way that people, including benefit claimants, earn a living by running their own business.

Establishing the true financial situation of a company owner requires some understanding of accountancy terms including dividends, balance sheet, shareholders’ funds and director’s loan account. The workshop shows what these different terms mean and how they affect our assessment of the claimant’s income and capital.

One very frequently debated topic is the Council’s discretionary power to disregard the value of a company’s shares as personal capital and treat the claimant as if s/he were for all practical purposes self-employed. When should this power be used? And if we are not going to disregard shares as capital, what method should be used to arrive at an accurate valuation? Is it a simple matter of looking at the company’s balance sheet assets? Or the amount of cash it has in the bank?

For tax reasons, company owners tend to draw a salary just below the threshold at which Class 1 NICs are payable. If the company can afford to pay more than this, the extra money is taken in the form of a dividend. How should dividends be treated in a benefits income assessment? We will give you our suggestions.

There have been various government assistance schemes made available to businesses during the Covid 19 pandemic. If the claimant’s company has received any of this assistance, how does it affect the HB/CTR assessment?

Perhaps the most obscure and misunderstood aspect of company finances is the director’s loan account. What exactly is this and should we take it into account in our benefits assessment? What difference does it make if the claimant owes money to the company, or vice versa?

Finally, there is a brief overview of the differences between HB, CTR and UC in the treatment of company directors’ earnings.

Both Workshops are presented by Peter Barker, a hugely experienced trainer, appeals presenter and submission writer. He started as a local authority appeals officer in the 1980s, and for many years he has represented local authorities in England, Wales and Scotland at both First-tier and Upper Tribunal level. Tribunal Judges frequently comment on the high quality of Peter’s submissions. He combines a wealth of first-hand experience with expert knowledge of adjudication legislation and has a real enthusiasm for the topic.

Contact us for In-House  'Zoom' booking information  for this topic.  

We are always pleased to arrange most of our Workshops, such as this one, for staff from an individual organisation. Please email us with your requirements for details.