Can I setup a Business whilst on ESA

Yes_i_can

OK so I've recently been placed in the work related activity group and I am thinking of setting up a small business but not sure what the rules are regarding permitted work so hoping someone can enlighten me. Tia

Lady_strange

As your name says, Yes I can. You can set up a business, as the whole point of the wrag is to get you back into work. permited work hours are 16 hours a week, if you ask your advisor, you can get help to do it

rogerblack

You absolutely must contact them first.
At first - phone up and ask for a permitted work form.

Yes_i_can

That's awesome! Thank you kindly

Yes_i_can

Sure thing. will do

bigboybrother

Lady_strange wrote: »

As your name says, Yes I can. You can set up a business, as the whole point of the wrag is to get you back into work. permited work hours are 16 hours a week, if you ask your advisor, you can get help to do it

You need not stick to 16 hours a week. You can do any number of hours as long as your net profit is less than £20 a week. Something not too difficult to do when self employed.

The 16 hours rule gives you the ability to have a net profit of up to £100 a week.

bigboybrother

rogerblack wrote: »

You absolutely must contact them first.
At first - phone up and ask for a permitted work form.

There is no need to phone the DWP before you start. They only say you should complete form PW1 at any time after you started.

It is not conditional of sending the form off before you start. They only want to see if the work that you are doing is consistent with what your condition is and whether it would interfere with any points gained in the ESA assessment.

Say for example you are unable to use your legs and remain in bed all day, the DWP cannot object if you work 10 hours a day from your bed using your laptop.

rogerblack

bigboybrother wrote: »

There is no need to phone the DWP before you start. They only say you should complete form PW1 at any time after you started.

It is not conditional of sending the form off before you start. They only want to see if the work that you are doing is consistent with what your condition is and whether it would interfere with any points gained in the ESA assessment.

In principle, yes, if you get a good DM.

In practice - it is not clear they are obliged to consider work done as permitted work, even if it comes within the rules. Some of the language in the decision makers guide implies not.

If you do work that is not considered permitted work - this can lead to cancellation of your claim.
This is different from the position under IB.

Horseunderwater

Self employment is not mentioned as one of the scenarios under permitted work - so ring them up in morning and ask for a call back from a decision maker at the BDC as it is important to clarify that point in my opinion.
http://www.turn2us.org.uk/information__resources/benefits/illness,_injury_and_disability/esa/permitted_work.aspx

That link takes you to rules - have a read.

Housing_Benefit_Officer

Would you qualify for New Enterprise Allowance?

This is to help people on Income Support or ESA Work Related Activity Group who want to start their own business.

This is a new allowance from 18th February 2013 - £65 a week for the first 13 weeks and £33 a week for a further 13 weeks plus a loan of upto £1000 to help with start up costs?

rogerblack

Housing_Benefit_Officer wrote: »

Would you qualify for New Enterprise Allowance?

This is to help people on Income Support or ESA Work Related Activity Group who want to start their own business.

This is a new allowance from 18th February 2013 - £65 a week for the first 13 weeks and £33 a week for a further 13 weeks plus a loan of upto £1000 to help with start up costs?

http://www.dwp.gov.uk/adviser/updates/new-enterprise-allowance/
". Once a participant has had their business plan approved, ended their benefit claim and started trading, they will be able to access financial support. This will consist of:"

For the moment, at least - permitted work may be a more appropriate route - if the averaged earnings through self employment are under the limits.