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I don't understand how money from selling assets on Ebay is counted when calculating HB but the assets themselves are not?

15 replies

NewNicknameForThisThread · 03/09/2015 21:00

Long-winded thread title, sorry!

I'll try to explain.

I do self-employed cleaning work on the days I'm not at uni. Some weeks are better paid than others.

Due to my variable income, i need to provide bank statements/evidence to the housing office every four weeks to assess my entitlement to housing benefit.

I received a letter from the council earlier this week stating that I was not entitled to HB these past three weeks, and must call them to make arrangements to pay it back.

Basically, i received a final demand for my quarterly gas bill of £220 a few weeks previously, and so ransacked the house for things to sell. This included a few things in cash through gumtree (TV, an old phone, some uni books, etc) and other things on Ebay. In total, i made just under £200 from these sales.

I transferred all the money from the cash sales and Paypal to my bank account. And immediately paid the late gas bill with my debit card.

And I've now learnt this money is counted as an income and I've wrongly been receiving HB these past few weeks.

Whereas if I hadn't sold these items, and they were just sitting in my house, i would have been perfectly entitled to the HB.

I'm not sure I'm even making sense anymore now that I've typed all of this out.

I'm trying to explain that this money wasn't extra/treat money per se. Technically i had it all along but in the form of objects. I had to sell my things - for a reason - to get it. Things I will probably need to buy again to replace the sold ones in the near future.

So somebody mega rich (who was renting for some reason) could go out and spend all of their millions of pounds on gold to make their bank balance reach £0 so that they could also claim HB? Despite having a house full of gold? But it's perfectly fine to have a house full of gold and receive HB, as long as it's not in the form of money?

I'm not making any sense, am I? I've to go for a meeting with the housing officer tomorrow to discuss paying this back and I'm just feeling rubbish about it.

OP posts:
YonicScrewdriver · 03/09/2015 21:04

Until they are realised, no one could value them?

It does sound crap though.

YonicScrewdriver · 03/09/2015 21:04

If you'd got an extra £200 from cleaning shifts, I assume it would be the same?

lougle · 03/09/2015 21:19

No that's not true.

Kingston LA:
"You cannot usually receive Housing benefit or Council Tax reduction if you have capital, savings or property worth over £16,000 (unless you receive guaranteed pension credit).

The amount of assets, savings and capital you own includes:
anything belonging to you
anything belonging to your partner
and sometimes anything belonging to your children
Assets, savings and capital cover any:
property or land (but not your home, your partner’s or an aged or incapacitated relative’s)
National Savings Certificates, stocks, shares, bonds and other investments
savings in cash or in a bank or building society
redundancy pay
tax refunds
Premium Bonds
Assets, savings and capital are not:
your home
sale proceeds of your home (for up to six months if you intend to purchase another home)
your business assets if you are self-employed
arrears of certain state benefits
certain compensation payments
a life insurance policy which has not been cashed in
personal possessions
money from insurance claims in respect of loss or damage to home or personal possessions (for up to six months if used to replace or repair)
any Social Fund payment"

So anything of any worth that you own is an asset. I don't know at what point they decide it's an asset - for example, I don't get anything deducted for having a car. But gold bars would be, for sure!

AndNowItsSeven · 05/09/2015 00:13

No, that list says assets are not personal possessions.

sanfairyanne · 05/09/2015 00:35

That just sounds an incorrect application of the law. Can you appeal?

Feckingfeckfeck · 05/09/2015 00:46

How did they know? Do they watch your accounts? I'm worried now because my mum just transferred 50 quid to me for my DD birthday Confused

sanfairyanne · 05/09/2015 11:20

Who actually told you it is income? Are they thinking it is self employed trading rather than selling a few possessions to pay a bill?

Pico2 · 05/09/2015 11:50

Given that you bought the assets out of income to acquire them, counting them again once sold is effectively double counting them.

NewNicknameForThisThread · 05/09/2015 12:41

Thanks all.

Fecking - No, it's only because I have to go in and show them my bank statements every few weeks due to my variable income (self employed work). Some weeks I am over the threshold for HB, other weeks I'm entitled to it. So I need to keep going in. You should be fine.

Yonic - I don't think that me selling my things to pay the gas bill is the same as me earning money from a few extra cleaning shifts at all. The latter would be extra income that wasn't mine before. Whereas the things I sold were already here and in my possession. just in object form rather than money.

Sanfairyanne - self employed trading is what was mentioned at my meeting with a man at the council office yesterday. They said that they have to see the money I made from Ebay/Gumtree in the same light as the money I made from my cleaning shifts these past few months. Surely they are not the same at all?

They've allowed me to pay back what I owe at £10 per week. Which is very silly considering I will still be getting HB during this time.

I am now considering appealing it. I've been looking at the MSE forums too and selling personal belongings cannot be counted as earnings according to replies on similar threads over there.

Thanks for the advice. now just have to figure out how to appeal!

OP posts:
Vajazzler · 05/09/2015 13:01

Not much help now but I think you can get a PayPal debit card which allows you to spend your balance.

sanfairyanne · 05/09/2015 13:21

Your MP might be able to help as well as CAB

lavent · 06/09/2015 08:49

I don't think this is correct - unless you made a profit on the items you sold?
I think you need to go back and clarify with someone else.
I think the person advising this has misinterpreted the rules which would apply if you were "trading" on eBay but you're not.

sanfairyanne · 06/09/2015 11:25

Did you find out how to appeal? I think you can ask for it to be looked at again, like an informal appeal, as well as a formal appeal. If you stress it was no trading, show your paypal account (trading would appear as regular income surely) it should be okayed

TalkinPeace · 06/09/2015 13:38

Selling your chattels is NOT taxable income under HMRC rules.

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