Incapacity benefit and own business

[poohbear59]

I have been on incapacity benefit and DLA for a few years as I am unable to work. We have been altering our house to make a self contained unit to make a holiday let. I can't do any of the work but am part owner. Does anyone know how that will affect my incapacity benefit? I can't decorate or clean it but I could choose furnishings from a catalogue for a few minutes a day before I become unable to. Does this mean I am working? It is still part of our house and as I become more disabled I will move in there but we need to get it to pay for itself first ie to pay off the masive mortgage we have taken out on our present home to fund the conversion.

[buildersmate]

I believe these to be means-tested benefits. If so, when you start receiving an income from renting it out, you have an income so it potentially impacts the benefits. Income is income - either income from earnings or income from investments.
You may be able to offset the expenses of the rental business off the gross takings from renting - to produce a net rental income figure that you can agree with the Benefits Agency as your income from the rental, but this means the mortgage interest and running costs - not the cost of repaying the capital on a large mortgage taken out.

[poohbear59]

Hi buildersmate, Thanks for your thoughts on my potential earnings. My incapacity benefit is not means tested but I will check on whether earnings from the investment on the holiday let will affect my status as unable to work. My husband will be doing all the work but I will gain from the earnings if it is in both our names. It is useful to know that we can probably offset the cost of the interest on the mortgage taken out on the development of the holiday let.

[W.LOVELL]

i would doubt very much, my wife is on this benefit but i can take her into a clothes shop etc, if you choose something you are using your head to make a decision..