Doing permitted work whilst claiming Incapacity Benefit?

Pickles68

Hi everyone, I'm new to this forum and am calling on you all for some wise words......

I am currently on Incapacity Benefit and have been for the past few years. I am at the moment thinking of doing some permitted work, anything up to 16 hrs. I wanted to know if I will be paying any tax on this wage? It's either gonna be for 7.5 hrs or 15hrs and the max. Yearly wage I would have is £5304. Would this then be taxed or would it be added to my incapacity benefit and taxed as a total of the both? Been on-line looking but it's all so complicated.....also would this permitted work wage affect my tax credits? Also, again! Lol, do I have to tell the social about these hrs if they are under the 16 hr threshold? Thanks in advance for your help.

Pickles68

Help......

rogerblack

I'm not very clued up on IB.
Following is my understanding.
Your permitted work may be allowed, and does not affect the amount of IB you get.
The total is taxable.
Once you are moved over onto ESA, if you are earning more than 20 pounds a week, you will only be able to do this for one year, before you lose the ability to earn over 20 pounds.
You can't get tax credits, 16h or over.

Pickles68

Thanks for your reply xx

Mupette

I'm on permitted to work and on esa (ic)
you can work up to 16 hours, and earn no more than £95 per week (i think) not £20. what i mean is it is more than £20 a week.

But stops after 1 year.

rogerblack

Mupette wrote: »

I'm on permitted to work and on esa (ic)
you can work up to 16 hours, and earn no more than £95 per week (i think) not £20. what i mean is it is more than £20 a week.

But stops after 1 year.

It's unfortunately complex.
If you earn 20 pounds/week - there is no limit of time.
If you earn from 20-95/week, the limit is one year, unless you're in the support group, in which case you can do this without limit of time, or unless you're you're doing 'supported permitted work' - which is again unlimited.

And if you thought this was confusing - try to get a straight answer about self-employed permitted work, and the earnings averaging rules.

oddbunny

Hi,
I am currently doing permitted work at the higher rate of £97 per week. Incapacity benefit is a taxable income so your permitted work wage will be added to it and tax paid if it goes over the current Personal Allowance. bear in mind this has gone up a fair it this year to even if you do pay tax it wouldn't be very much. Permitted work also does not affect housing benefit or council tax benefit. Hope that helps!