Moving from ESA to employment

eskimo26

This is pretty much decision time for me, I've reached a point in my treatment where i can now almost certainly work 16 hours a week either self employed or otherwise. I have the following questions:

Not self employed
1/ At what point do i inform my office to end the ESA claim, when i recieve confirmation of an employment offer, when i apply for the work or some other time?

Self employed
1/ How do i register as self employed, i've heard its easy but having never done it before am apprehensive.
2/ When will universal credit come in and put a stop to self employment of 16 hours?
3/ Will the following clause stop me claiming return to work credit if I cannot meet it on a self-employed basis? "you are earning at least the National Minimum Wage".
4/ Will Job grant be payable in this situation?

Also will the company running my work programme get a (very lucrative) sum because i have returned to work? Can anyone remember the name of the organization that offers people on ESA CBT and other psychological help?

Anything else i should know?
Thank you so much am feeling so strange, like i can finally begin what my university friends began the second the degree was over. Their quite well off now and here i am fumbling around with 16 hours a week, i do feel positive though which is a nice change!

rogerblack

You can be fit for work, and eligible for ESA.
It's not that you're unfit for work that is the test, but that you pass the ESA tests.
For example, someone who has epileptic fits more than once a week may consider themselves fit to work, but not be under the regulations.

Anyway.
Registering as a sole trader is simple - you just contact HMRC and tell them you are, so they know to send you the right forms.
Universal credit will not put a stop to SE of 16 hours, however, it may have negative implications if you're earning under the minimum wage, and topping up with tax credits.
HMRC are at the moment looking very closely at claims where the earnings are under minimum wage.

If you are still eligible for ESA, then considering doing this under the Permitted Work rules may be a good plan.

eskimo26

rogerblack wrote: »

You can be fit for work, and eligible for ESA.
It's not that you're unfit for work that is the test, but that you pass the ESA tests.
For example, someone who has epileptic fits more than once a week may consider themselves fit to work, but not be under the regulations.

Anyway.
Registering as a sole trader is simple - you just contact HMRC and tell them you are, so they know to send you the right forms.
Universal credit will not put a stop to SE of 16 hours, however, it may have negative implications if you're earning under the minimum wage, and topping up with tax credits.
HMRC are at the moment looking very closely at claims where the earnings are under minimum wage.

If you are still eligible for ESA, then considering doing this under the Permitted Work rules may be a good plan.

Thankyou, my ATOS medical is in January and i would rather make a clean break of it. I find myself healthy enough to wonder if its worth the stress and really want to move forward.

I'm not sure what my earning power will be if i go down the root of being self employed, i have to build a portfolio and website which may take time but my work will be up for sale A.S.A.P.
I can do photography, illustration etc. but we are in the middle of a recession so i'm unsure on the viability of that. I could probably meet minimum wage in the first 4 months by selling stuff on ebay, we have a LOT of good stuff we no longer want in the attic its just sitting their no one has had the inclination to use ebay.

I have applied for care work at an old people's home of 18 hours but i have no work experience whatsoever on my CV, i mean 7/8 months 10 years ago... I hope i get it, if they are signed up to the disability equality thing is it true they are obligated to interview me? Anyway i'm going full throttle on all avenues but part time work is at a premium atm and i definately DO NOT want to be on the work programme on JSA!

Thanks again.

Its worth saying once the ball is rolling i will be earning well in excess of minimum wage, all my friends are self employed in the same field of work and went to the same university. Its just a question of getting my work out there.

matt2222

You can register online for self employment at HMRC website and also if you think your earnings are going to be below £5315 you can download and print off and send a "small earnings exception form" so you don't have to pay Class 2 National Insurance if you choose not to.
HMRC accept that you may not make any any profit in your first year in setting up your business google "HMRC CCM6755"for activities which count as work towards your 16 hours
If your disabilities mean you are unable to work a normal 9 to 5 working week you may qualify for Disability Tax Credits as well as Working Tax Credit.
You have to ring Tax Credits now to get a form posted to you and have to answer some security questions to prove who you are.It also comes with a clear guide for completing the form
Have you seen a Disability Employment Adviser at your Jobcentreplus.They are very well informed and can let you know what other things you may be eligible for and how to claim ie Job Grant and Return to work credit.
You don't have to go through the Work Programme.
All the best

eskimo26

matt2222 wrote: »

You can register online for self employment at HMRC website and also if you think your earnings are going to be below £5315 you can download and print off and send a "small earnings exception form" so you don't have to pay Class 2 National Insurance if you choose not to.
HMRC accept that you may not make any any profit in your first year in setting up your business google "HMRC CCM6755"for activities which count as work towards your 16 hours
If your disabilities mean you are unable to work a normal 9 to 5 working week you may qualify for Disability Tax Credits as well as Working Tax Credit.
You have to ring Tax Credits now to get a form posted to you and have to answer some security questions to prove who you are.It also comes with a clear guide for completing the form
Have you seen a Disability Employment Adviser at your Jobcentreplus.They are very well informed and can let you know what other things you may be eligible for and how to claim ie Job Grant and Return to work credit.
You don't have to go through the Work Programme.
All the best

Thankyou so much, would i be eligible for the return to work credit even if i don't meet minimum wage on a self employed basis? Its one of the clauses on the dwp website.

matt2222

Yes but you will have to complete a RTWC3JP Return to Work Credit self-employment application form and attach a business plan with a business advisers signature approving your plan.This can be done by your Bank.
You will also have to provide evidence of trading at 10 weeks and 26 weeks to keep your credits for a year.
This could include research,building a website,advertising
market research etc
You do not have to have made a profit so long as you are trading.

matt2222

RTWC3JP and RTWC2JP forms are available to look at online.
Your Disability Employment Adviser will give the number of your Return to Work Credit Team who will send you these forms to you and answer any other questions you may have

matt2222

Just seen "you are earning at least the National Minimum Wage" on DWP site which is misleading as it only applies to people who are working as an employee and not the self-employed as they may take up to a year or even more to make a profit.This is perfecting normal and accepted by HMRC.

Weary_soul

Really? Because after reading some posts on a various boards including the CAB Rightsnet site, there seems to have been a load of self employed on small earnings being jumped on by the Inland Revenue and having to pay back their tax credits, which is a rather worrying development.

I was hoping that in the future I'm somehow manage to go back to being self employed after being on ESA and now I'm not so sure as I'd hate to be stuck with a massive bill after my first year.

matt2222

Not for genuine attempts at self-employment especially in the first year.There are businesses out there with multi million pound turnovers who are currently making losses.I think if you say you are self-employed spending 16 hours valeting visiting alien spaceships a week you may be treated with some suspicion!!!

Weary_soul

Sadly not from the genuine cases I've read about On Rightsnet. Seems that the Inland Revenue weren't even sticking to their own guidelines when it came to what they saw as 'real' ruminative work. Talk about moving the goal posts to suit themselves.