Freelancing but mostly unemployed

[CaptainBlackSK4]

I lost my job a while back, but get the occasional offer of freelance work. It's not enough to allow me to sign off though.

Should I register with the tax as self-employed and how does that affect any JSA benefits I'm receiving?

It's a bit of a grey area.

[peterjhale]

Any work you do as self employed must be registered with HMRC as self employed within 3 months of commencing.

[Ian J]

I'm not 100% sure but I think that you can continue to sign on but must declare the periods where you have done a bit of work - as long as it is just the odd day here and there

[CaptainBlackSK4]

My problem is this:

I could do everything by the book - tell the tax office about occasional earnings and tell the Jobcentre when I do work.

If I earn say £200 in a week, the Revenue will take about 22% (I think) - so that's £44. I have no problem with this.

But then the DSS also take my earnings into account for that week. As I receive about £160 in basic JSA and contributions towards housing, they will also take that amount out of my £200.

So basically, I am left with about a fiver and wondering why I bothered doing any work. And the Council Tax will probably have that. On top of that, there'll be an orgy of form-filling for being an unusual case and trying to work.

You could argue that I'd feel more fulfilled doing an honest day's work but it's not really an incentive, is it?