Where's the benefit
Question
I became self-employed in July 2008. I didn't do too badly for the first few months but now I am not making enough to pay the bills. I have a joint mortgage with a friend who has moved overseas, so I am paying the whole mortgage.
To complicate matters, I am a single mum and just found out I am five weeks pregnant, so I will not be able to do my work for much longer. My friend has advised me to stop being self-employed and try to claim benefits. Can I do that? Would they help with my mortgage, and would I need a contract or letter from my friend to verify that I am paying the mortgage on my own?
Answer
As your situation is complex, you need to see a benefits advisor who will be able to talk things through with you and help you with your options. It would be a good idea to take as much paperwork and information about your situation to this meeting as possible.
Regarding benefits, you may be able to claim even if you are self-employed. If your income fluctuates you can claim based on your average income. You can use an online calculator to see what you may be entitled to, and there is more information about different benefits on the DirectGov site.
You may also be able to access funding and support to help with your business. Your local Business Link will be a good place to start.
Your mortgage company can hold both you and your friend liable unless you apply to have it changed into your sole name. You can only do this with the consent of your friend and it might not be possible as you will have to prove you can afford the repayments in order for it to be transferred into your name alone.
Updated: 12/08/2010
Question answered by CAB
