Claiming benefits for the first time. Advise needed please.

[mod]

I was made redundant at the end of September. Got a few grand pay off that'll keep me going for 2 months if i live very very frugally. Under the £6k savings they ask you if you have.

I have a daughter who used to be here 50% of the time but is 14 now and comes a lot less. Her mum is already claiming universal tax credits.

I own my own modest flat.

I've used this calculator and initially thought I could claim claiming universal tax credits and it calculated I could claim £1000 a month but without UTC its about £500 a month which wouldn't cover my mortgage.

Traditionally I've always found it quite easy to get interviews and jobs. Mainly freelance but the Tory governments change to the IR53 tax laws has practically killed that method or self employment and that was always my safety net. You can still freelance via an Umbrella company but I'm getting request for me availability for freelance work about once a month when once it 3 or 4 times a week.

I knew redundancy was coming months ago and have applied for over 60 permanent jobs and had one interview.

I'm a digital designer (web / social media and motion graphics artist). My age (50), living in Brighton full time now (3 years) AI and agencies using designers from the other side of the world to work remotely for half the price are all factors. The wages in Brighton for my type of job are £15k to £20k lower and I was often struggling on my wage from my job due to the cost of living. paying of debts and commuting costs to london.

I may be forced to rent out my daughters room which I really dont want to do as she still comes occasionally and that would put and end to that. Something I'd find upsetting. I'd still see her often but I'd prefer to keep it as her room.

Regarding benefits, I could play up my ankylosing spondylitis whicb can be a nasty and debilitating decease via PIPS.

I'm getting a little nervous about the situation. Any advice appreciated. Thanks in advance.

 

[Pickman's model]

I'm sorry to hear that. My normal advice in all situations is to look for a job in a library, and it'd be worth looking at the universities in Brighton to see what they might have in the tech field. You should pop in a pip application, and .maybe esa - it'd be worth having some help with these to get the best chance of success.

 

[two sheds]

Can't help generally, sorry, but my understanding is that IR35 doesn't generally apply if you've got two customers. Could be worth going freelance and trying for that as one option? You can also claim for house etc expenses.

 

[hitmouse]

Yeah, definitely recommend putting in a PIP application. Looks like Brighton does still have an unemployed centre, they might be able to provide some advice:

Welfare Rights advice — BUCFP

bucfp.org

 

[Silas Loom]

Can't help generally, sorry, but my understanding is that IR35 doesn't generally apply if you've got two customers. Could be worth going freelance and trying for that as one option? You can also claim for house etc expenses.

That’s not quite true. What matters is whether you have the right to substitute labour, use your own materials, determine your own schedule, and so forth. You can be deemed as outside IR35 with one customer, or inside IR35 with several if they are prescriptive about how you operate.

Anyway, now that businesses employing freelancers are responsible for making the IR35 determination, they are generally more risk averse than when the onus was on the contractor, so it’s not surprising that mod is seeing reluctance to offer contract work outside IR35.

 

[two sheds]

That’s not quite true. What matters is whether you have the right to substitute labour, use your own materials, determine your own schedule, and so forth. You can be deemed as outside IR35 with one customer, or inside IR35 with several if they are prescriptive about how you operate.

Indeed sorry yes there are requirements,

as you say: Working for yourself says

You’re probably running a business if you:

• take responsibility for its success or failure
• have several customers at the same time
• can decide how, where and when you do your work
• can hire other people at your own expense to help you or to do the work for you
• provide the main items of equipment to do your work
• are responsible for finishing any unsatisfactory work in your own time
• charge an agreed fixed price for your work
• sell goods or services to make a profit

I work from home so they're no problem - is your problem mod that you don't meet them?

Anyway, now that businesses employing freelancers are responsible for making the IR35 determination, they are generally more risk averse than when the onus was on the contractor, so it’s not surprising that mod is seeing reluctance to offer contract work outside IR35.

That I hadn't realized. When I checked whether I fall under IR35 I filled out the questionnaire on HMRC's site and it came back that I don't. Is that not enough to convince an interested business?

Sorry if this is irrelevant by the way.

 

[Silas Loom]

Indeed sorry yes there are requirements,

as you say: Working for yourself says


I work from home so they're no problem - is your problem mod that you don't meet them?



That I hadn't realized. When I checked whether I fall under IR35 I filled out the questionnaire on HMRC's site and it came back that I don't. Is that not enough to convince an interested business?

Sorry if this is irrelevant by the way.

It might well need its own thread, but as long as the employer is over a certain revenue threshold (£10m I think) it’s up to them to make the determination, and they will often apply yardsticks or principles which are more cautious than a freelancer’s interpretation of the legacy HMRC guidance.

 

[kalidarkone]

Do you have mortgage insurance? In the past I found that very useful when I've had long periods of time off sick.

 

[two sheds]

It might well need its own thread, but as long as the employer is over a certain revenue threshold (£10m I think) it’s up to them to make the determination, and they will often apply yardsticks or principles which are more cautious than a freelancer’s interpretation of the legacy HMRC guidance.

Seems silly if businesses wouldn't be happy with adding a clause to any agreements (confidentiality etc) you have with them?

 

[Silas Loom]

Seems silly if businesses wouldn't be happy with adding a clause to any agreements (confidentiality etc) you have with them?

If there was an easy way of reducing IR35 risk by adding clauses to agreements, lots of people would be doing it, and HMRC would be very eager to stop them. Anyway, mod knows his market and his customers, and it sounds like his skills are tough to market locally for a myriad of reasons.

 

[not henry]

sorry about your situation, but whether you are entitled to a particular benefit or not, put in the claim now. Do not wait until the money runs out and then do it. It takes long enough and they will soon say if you are not due (yet). As for pip yes definitely apply. it is independant of all other benefits (ie universal credit) and could prove to be the most important benefit to you. The form is long and nuanced and it can often profit to take advice on filling it in (citizens advice etc.)
Good luck with it

 

[MickiQ]

I was made redundant at the end of September. Got a few grand pay off that'll keep me going for 2 months if i live very very frugally. Under the £6k savings they ask you if you have.

I have a daughter who used to be here 50% of the time but is 14 now and comes a lot less. Her mum is already claiming universal tax credits.

I own my own modest flat.

I've used this calculator and initially thought I could claim claiming universal tax credits and it calculated I could claim £1000 a month but without UTC its about £500 a month which wouldn't cover my mortgage.

Traditionally I've always found it quite easy to get interviews and jobs. Mainly freelance but the Tory governments change to the IR53 tax laws has practically killed that method or self employment and that was always my safety net. You can still freelance via an Umbrella company but I'm getting request for me availability for freelance work about once a month when once it 3 or 4 times a week.

I knew redundancy was coming months ago and have applied for over 60 permanent jobs and had one interview.

I'm a digital designer (web / social media and motion graphics artist). My age (50), living in Brighton full time now (3 years) AI and agencies using designers from the other side of the world to work remotely for half the price are all factors. The wages in Brighton for my type of job are £15k to £20k lower and I was often struggling on my wage from my job due to the cost of living. paying of debts and commuting costs to london.

I may be forced to rent out my daughters room which I really dont want to do as she still comes occasionally and that would put and end to that. Something I'd find upsetting. I'd still see her often but I'd prefer to keep it as her room.

Regarding benefits, I could play up my ankylosing spondylitis whicb can be a nasty and debilitating decease via PIPS.

I'm getting a little nervous about the situation. Any advice appreciated. Thanks in advance.

Have you considered becoming a limited company and then employing yourself? I did that and it avoids all the IR35 crap because your clients are paying the limited company which is then paying you. There's obviously running costs (mine were around a couple of hundred quid a month) but you can save yourself tax by paying dividends rather than salary.
I used to use SJD Accountancy who specialised in IT freelancers though they have now renamed themselves to Caroola for some not obvious reason check out their website if you want a bit more info.

Home

Caroola Accountancy are specialist contractor accountants, serving the agile workforce, offering fixed rate packages to meet your requirements.

caroola.com

 

[Puddy_Tat]

Would agree with the 'claim soonest' thing.

I'm a bit out of touch with it all but think with universal credit (which has replaced unemployment benefit) you get bugger all for the first 5 weeks anyway, and think that's from date of claim not date of redundancy.

At one time, there were circumstances where you could get something from the benefits system towards mortgage interest, I don't know how that works now.

You can probably claim council tax reduction (on grounds of low income - which is not the same as the single person discount) - if you're in the brighton council area, then more here. if you're just outside brighton council area, then the local council will have similar. they may not calculate it until your UC claim is sorted, but it's probably worth getting your claim in sooner rather than later.

I don't know the specifics of PIP / ESA, but again i'd say if in doubt, claim. As well as what's been posted already, there's a thread or two on here, there's the benefits and work website which has quite a bit.

And be aware that the DWP is largely a benefits denial system now. the people are not there to help you, they are there to try and stop you getting benefits, or to get you off them by any means possible. The usual response to ESA / PIP claims is to turn them down, as they know not everybody will have the ability / energy to challenge / appeal, but the proportion of appeals where the claimant wins is quite high. don't let the bastards grind you down.

 

[mod]

Do you have mortgage insurance? In the past I found that very useful when I've had long periods of time off sick.

Unfortunately no only live insurance. My confidition can be terrible but i only tend to get 3 or 4 severe flare ups a year. and working (mainly) from home) its never really stopped me working apart from few days odd in the last 2 years. However last time I was unemployed (for 2 months as stress brings on AS) I was in bed for best part of two weeks.

 

[mod]

Have you considered becoming a limited company and then employing yourself? I did that and it avoids all the IR35 crap because your clients are paying the limited company which is then paying you. There's obviously running costs (mine were around a couple of hundred quid a month) but you can save yourself tax by paying dividends rather than salary.
I used to use SJD Accountancy who specialised in IT freelancers though they have now renamed themselves to Caroola for some not obvious reason check out their website if you want a bit more info.

Home

Caroola Accountancy are specialist contractor accountants, serving the agile workforce, offering fixed rate packages to meet your requirements.

caroola.com

I done this for almost 15 years but once the change in the law agencies wouldn't touch us. You had to go via an Umbrella Company (which I've set up).

 

[Silas Loom]

Have you considered becoming a limited company and then employing yourself? I did that and it avoids all the IR35 crap because your clients are paying the limited company which is then paying you. There's obviously running costs (mine were around a couple of hundred quid a month) but you can save yourself tax by paying dividends rather than salary.
I used to use SJD Accountancy who specialised in IT freelancers though they have now renamed themselves to Caroola for some not obvious reason check out their website if you want a bit more info.

Home

Caroola Accountancy are specialist contractor accountants, serving the agile workforce, offering fixed rate packages to meet your requirements.

caroola.com

It does not avoid the IR35 crap.

 

[MickiQ]

It does not avoid the IR35 crap.

Did for me

 

[Silas Loom]

Did for me

Massively depends on the employer, their risk appetite, and their level of exposure to freelance resource. Specialists who are typically freelance and who tend to work through organisations that scale up and down to meet current workload find things tougher than people doing a job which is normally in-house but who have lucked into a mutually satisfactory contracting relationship.

 

[mod]

It does not avoid the IR35 crap.

You can still get freelance work 'outside' IR35 but its rare now.

 

[t0bytoo]

Sorry to hear of your troubles. The industry is in a big slide - has it reached the bottom yet? Work is hard to find these days.

I don't think it's due to IR35 - that's just a way of getting paid. I think it's the economic-changin-fucked-up times.

Work will come along eventually. It's never fun waiting for it. Good luck!

 

[mod]

Have called to PIP people who have started the application an and are sending forms.

Called Brighton benefits people who are calling me back later to start that application process.

I've had my CV and portfolio sent to a few companies so fingers crossed on that. I think one can still claim PIPS even when working.

 

[two sheds]

Just to check and I'll shut up about IR35 after this. Could you do the freelancing from home? If you had to access their systems remotely on your own computer I think that would count as you supplying the main items of equipment to do your work. And if they sent the work for you to do in your own time even if you generally did it straight away I think that would count too.

 

[Silas Loom]

Just to check and I'll shut up about IR35 after this. Could you do the freelancing from home? If you had to access their systems remotely on your own computer I think that would count as you supplying the main items of equipment to do your work. And if they sent the work for you to do in your own time even if you generally did it straight away I think that would count too.

I know you really want there to be a completely clear set of rules which enable workarounds, but that’s not the reality on the ground. The HMRC attitude to disguised employment is that they know it when they see it. It’s not in HMRC’s interest to specify exactly where or whether right of substitution trumps provision of tools, because then fewer people would end up inside IR35 and paying NIC.

There is a huge industry now of consultants that aid businesses in making IR35 determinations. To some extent, these consultants and their clients can calibrate their risk appetite, which results in a variety of criteria being applied in a variety of contexts.

There are also plenty of people who get away with operating a PSC of some sort or another and working for one major customer, even using their workplace, without the issue ever arising. It’s all about the risk awareness of the employer.

 

[A380]

Unfortunately no only live insurance. My confidition can be terrible but i only tend to get 3 or 4 severe flare ups a year. and working (mainly) from home) its never really stopped me working apart from few days odd in the last 2 years. However last time I was unemployed (for 2 months as stress brings on AS) I was in bed for best part of two weeks.

Sorry to hear of your situation and condition. With an episodic condition make sure that when you complete your PIP form you describe your worst days. Ms A380 has had to do this with her MS for years. It’s quite depressing as you have to think about what you can’t do rather than what you can.

 

[scifisam]

Have called to PIP people who have started the application an and are sending forms.

Called Brighton benefits people who are calling me back later to start that application process.

I've had my CV and portfolio sent to a few companies so fingers crossed on that. I think one can still claim PIPS even when working.

Yes, you can claim PIP (not PIPS) whether you're working or not, because it's not about ability to work, it's about personal care needs. Like needing help with washing yourself, preparing meals or being driven to places because you can't walk well enough.

ESA is the one that's about work. It's actually slightly easier to get than PIP. Universal credit also has a disability element that's similar to ESA and is pretty straightforward, surprisingly. You will almost definitely need to be assessed, though.

I think it would be a very good idea for you to get someone to help you fill in the forms, because if you haven't done it before it's difficult to word it in a way they take seriously. And you need to provide evidence, which isn't always that easy.

 

[A380]

Have called to PIP people who have started the application an and are sending forms.

Called Brighton benefits people who are calling me back later to start that application process.

I've had my CV and portfolio sent to a few companies so fingers crossed on that. I think one can still claim PIPS even when working.

Yes, PIP is non means tested. It's supposed to be a benefit to mitigate some of the extra costs of living with disabilities. It also acts as a gateway for other things, like a blue badge for example.

 

[equationgirl]

mod feel free to ask questions on the pinned ATOS thread on politics. There's generally some posters there who can help.

My advice is don't attempt to complete the form all at once. It can be a soul destroying experience due to the way things need to be be worded. Especially don't be all 'stiff upper lip' about soldiering on, it won't help you meet the criteria for the payment - you need to think in terms of your worst day and also bear in mind if you did push through, what would be the physical/mental cost to you on the following days?

Also happy to help via a private conversation if you preferred.

I'm so sorry this has happened to you. Since 2018 I have been through two redundancies and lost my then job at the end of 2022. It took me almost an entire year to get a new job and whilst I was unemployed I depleted my savings and have a large amount of debt on my credit card. Were it not for unemployment insurance plus job seekers allowance for six months I would be even worse off. Job seekers allowance was not a huge amount but it helped.

 

[iona]

Citizens Advice have a good guide on how to fill in your PIP form. There's probably one for whatever the UC version of ESA is too.

Check how to fill in your claim form

Detailed information on how to fill in your ‘How your disability affects you’ form, including advice for each question and tick box.

www.citizensadvice.org.uk

 

[iona]

Getting any rate of either component (doesn't have to be mobility) of PIP also means you're entitled to a disabled person's railcard, in case that's relevant to you. Costs £20 a year or £54 for three years and gets you and one person travelling with you ⅓ off most rail fares (but not season tickets).

 

[geminisnake]

As others have said get help filling in both forms, do apply for both cos chances are you are going to have to appeal them. Have you applied for council tax benefit yet? That can take a while too.

It can be totally pants reading back your forms, I kinda forget how bad I can be cos you just live with it.

Hope you get it sorted ok.