Self – Employed Claims
This course is suitable for experienced assessors.
Duration: 1 day
Assessing income and capital for self-employed claimants is a complex area of HB/CTB. This course is designed to enable benefit staff to deal with these claims accurately and with confidence. The course is supported by group discussion, exercises, comprehensive course notes, rates and allowances tables and a desk aid.
Learning outcome
At the end of this course entrants will have a comprehensive understanding of how to extract income and capital from claimants’ accounting records; allowable and non-allowable expenditure; dealing with new applicants without accounts and notional Tax and National Insurance.
Identifying the self-employed
- Legal definition of a self-employed earner
- How do HMRC define a self-employed earner?
- The duties of a self-employed person
- Establishing the nature of the business
- What is not counted as self-employed?
Evidence of self-employed income
- Standards of evidence
- Reasonable requests for evidence
- Good practice guidance
The Assessment Period
- What is an Assessment Period?
- What Assessment Period should you use?
- Brand new business / established business
Gross Profit
- Certified accounts / summary of income
- Brand new business / established business
- Business capital e.g. assets, loans, grants and allowances (including BSUA, Princes Trust, etc)
Business expenses
- What is allowable and not allowable?
- Reasonable expenses
- Drawings
- Employing a spouse or partner
- Shared expenses
- Working from home
Calculations
- Calculating the Pre-Tax Profit
- Calculating Notional Income Tax
- Calculating Notional National Insurance
- Calculating Pension Contributions
Cases treated differently
- Self-employed childminders
- Share fishermen