It depends on whether you're in a universal credit area. If you are it would probably trigger a move to universal credit, in which case you'd have to prove that you were gainfully self-employed (ie. Doing the usual activities of a self-employed person and receiving money for the goods/services you supply) and after the first year, it would be assumed that you were earning the minimum income floor of approx £1000 per month (35 hours per week at NMW).
If you're not in a UC area, your income will be taken into account against your applicable amount and your benefit will be calculated accordingly.
Having said that, Council tax relief has been devolved now, so each council can set its own rules. Some councils have adopted the UC line despite not yet being a UC area, so will refuse CT relief if the business is not profitable.