# Self employed ( sole trader ) entitled to state benefits ?



## rabbit (21 Nov 2008)

A friend who has been self employed for several decades is finding work completely drying up this last year or so, and has been digging in to savings since interest rates went up a few years ago just to get by / pay mortgage / childcare etc. His business was in the leisure sector, and people do not seem to be spending on non-essential items at the moment , and /or the market is flooded etc.  He has tried to diversify without success.    This cannot continue. He has looked for other jobs without success, as he is considered too old + unqualified for anything much. Its sad as he has worked hard and saved as much as he could his whole life, for the rainy day, which came a few years ago + lasted since. He bought investment property at the height of the boom, which is now in negative equity big time + losing money too, and which he has been trying to sell for over 2 years without any buyer or even offers.

Would he be means tested for any dole / unemployment benefit ? Would the investment property he has be taken in to account to his detriment, even though its worth a lot less than he paid for it and his mortgages alone has been bigger than his income this last few years ?


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## Welfarite (21 Nov 2008)

Jobseeker's Allownace is means-tested adn the capital value of any property he has outside of his family home is assessed as means.


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## rabbit (24 Nov 2008)

Welfarite said:


> Jobseeker's Allownace is means-tested adn the capital value of any property he has outside of his family home is assessed as means.


 
Even if its in negative equity overall and interest payments exceeding rent, would just having that property mean he could not get any dole or unemployment assistance or jobseekers allowance or whatevers its called ?


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## dontaskme (25 Nov 2008)

rabbit said:


> Even if its in negative equity overall and interest payments exceeding rent, would just having that property mean he could not get any dole or unemployment assistance or jobseekers allowance or whatevers its called ?


I doubt it.

But if he was self-employed he might find it harder on welfare than someone in paye.


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## Welfarite (27 Nov 2008)

rabbit said:


> Even if its in negative equity overall and interest payments exceeding rent, would just having that property mean he could not get any dole or unemployment assistance or jobseekers allowance or whatevers its called ?


 
It's as it says; capital value of the property: Outstanding mortgage, rent doesn't come into it. However, if he can prove he has the property on the market, it may be disregarded for a period and any outstanding mortgage registered against the property is deducted from the market value.


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