We need to see your last years trading accounts for all businesses you have and a completed self-employed earnings form.
If you don’t have accounts then you need to keep an accurate record of your business income and expenses and complete a self-employed earning form.
Self-employed Earnings Form
A new business
You need to complete a self-employed earnings form giving details of what you expect the income and expenses to be for the first three months of trading.
How are self-employed earnings calculated?
We need to work out your gross average weekly income from your business. We do not allow some expenses and we will add back in any personal drawings you take from the business.
Changes to your business
You must tell us about changes which will have an effect on the income of your business. Things like:
- A change from full-time to part-time
- The loss of a major customer
- Your business is affected by seasonal work
If you are a self-employed childminder, we will work out your gross self-employed earnings using one-third of your gross income.
If you are thinking of going self-employed you can access more advice and information from
Directgov: Self-employment Opens in a new window
We use the gross amount you earn and take off what you pay for tax and National insurance, and 50 percent of any pension you pay.
We can also take off a set amount from your earnings every week:
- £5 if you are single
- £10 if you are a couple
- £20 if you are disabled or a carer
- £25 if you are a single parent
If you pay for childcare we can reduce the amount of the earnings we use in your claim. This can be up to £175 for one child or £300 for two or more children each week. There are certain circumstances that must be met to use reduced earnings.
The child must be under 15 years old or under 16 if disabled.
Single parents must either:
- Work 16 hours or more a week
- Be on maternity leave and receiving statutory maternity pay or maternity allowance
Couples must either:
- Both work 16 hours or more a week
- One works 16 hours or more a week and the other is disabled, blind or is on maternity leave and receiving statutory ,maternity pay or maternity allowance
The childcare must be provided by:
- A registered childminder
- A childminding scheme where registration is not required (e.g. run by a school or LA)
- Any other out of hours scheme provided by a school on school premises or by a local authority - in this case only, the child must be aged 8 or more
The amount we can reduce your earnings by is up to a maximum of:
- £175.00 per week per HB or CTS claim for claimants with one child or
- £300.00 per week per HB or CTS claim for claimants with two or more children
We will need proof of the childcare you pay, please ask the childcare provider to complete a childcare payment form.
Childcare Payment Form
This form must be completely by registered childminders.