Benefits/small business

inspirespirit

I have mobility problems and another medical issue that I'd rather not go into but it makes it impossible for me to work outside the home. I also have a disabled son with a serious illness that takes up a lot of my time.
However, there's nothing wrong with my hands, thankfully, and my hobby is crafting. I would really like to start making things to sell and try to start a small business but how do I go from being on Benefits to earning enough to live on. I rang the helpline and they said I can earn between £5 - £20 per week depending on the benefits I am on, or I would have to come off benefits. I just don't know where to start. If I register as a business, I will have to come off benefits, yet there's a good chance I either won't earn, or will earn very small amounts. I don't even know if anything will sell at all. I would absolutely love to come off Benefits. I was thinking of spending the Winter making stuff and then come the Spring, if I have a little stock of bits and pieces, doing a craft fair to see if anyone buys anything. I've been crafting forever and a day so luckily have lots of materials and tools without having to spend any money. Has anyone else ever done anything like this, and if so, how did you go from earning nothing to making a living? I'd be very grateful for any advice.

rogerblack

What benefits are you on.
On ESA, and IB, permitted work is possible, which may be up to £95 profit/week.
You need permission first.

inspirespirit

Roger, I am on Income Support, Carer's Allowance and DLA. I am 60 this year... don't know if that makes any difference. I miss the retirement age by 4 or 5 months, so I am able to carry on working till I am 65.

rogerblack

Income support only has permitted work up to the £20/week level.
In principle, if you were to change over to income-related ESA, you could do permitted work at the higher level.
How good an idea attempting this is depends on how well your condition matches the ESA criteria.
http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/@disabled/documents/digitalasset/dg_177366.pdf is a fairly detailed description - the specific criteria begin on page 17, though reading the whole thing is a good idea.

I suspect the income from permitted work, if you are caring for your partner - may reduce their benefit, though i don't know this.

pmlindyloo

rogerblack wrote: »

Income support only has permitted work up to the £20/week level.
In principle, if you were to change over to income-related ESA, you could do permitted work at the higher level.
How good an idea attempting this is depends on how well your condition matches the ESA criteria.
http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/@disabled/documents/digitalasset/dg_177366.pdf is a fairly detailed description - the specific criteria begin on page 17, though reading the whole thing is a good idea.

I suspect the income from permitted work, if you are caring for your partner - may reduce their benefit, though i don't know this.

I believe the OP is a lone parent with an adult disabled son and she is his carer.

From reading your previous posts, OP, I am presuming that you have had advice about whether you should claim ESA or CA and IS to give you the best financial scenario?

Now your question makes this choice even more complicated as with ESA you can earn more than when on Income Support without it affecting your benefits.

I think you need to be realistic. From what you are saying there appears to be little likelihood that your craft business will generate enough to live on. You could claim working tax credits to 'top up' your income and still claim HB and CT support instead of your current benefits but in the end you are only moving from one benefit to another.

Benefits are for those who need them and you should not feel bad about having to rely on them in your circumstances.

Why not start your craft business in a fairly small way, selling to friends (they 'gift' you some money/rather than you sell to them) - keep it as a hobby. If it really takes off then you could consider becoming self employed.

inspirespirit

Thank you to both of you for your replies. No-one has ever mentioned ESA to me and it hadn't occured to me to change benefits. My son is in the ESA support group. I have given loads of my craft stuff away to family and friends, but the trouble is, giving stuff away is fine but it doesn't give you any funds to re-buy new materials to make new stock. Maybe it's just a pipe-dream but I would just love to be able to make an income out of it.

inspirespirit

oh Ive just re-read your comment pmlindyloo. I can get people to 'gift' me money for my craft? Can I do that? Is it all above board? I have had people say they will pay me to do stuff for them, but Ive always said no cos I have no intention of getting myself into trouble with the authorities.

rogerblack

pmlindyloo wrote: »

I believe the OP is a lone parent with an adult disabled son and she is his carer.
<snip>
Why not start your craft business in a fairly small way, selling to friends (they 'gift' you some money/rather than you sell to them) - keep it as a hobby. If it really takes off then you could consider becoming self employed.

Oops - my reply assumed that IS was on grounds of her disability.

However, doing the above is, or at least could reasonably be viewed as benefit fraud.

Anything you do with the expectation of payment would not be a gift.
If for example you gave 5 friends something, and 4 paid you, but one did not - and then you only gave those 4 something next time - that would be a clear sign you were expecting a gift, and that what is being done is work.
Failing to report being in work will lead to IS being reterospectively withdrawn from the date they believe you started work, and you having to repay it, along with the possibility of prosecution if this exceeds £2K.

Any stock you make while on benefits would not be a personal possession - and hence will count as capital.

Probably the best that can be done is to earn a small amount a week - the £20 - while building up a stock of items for later sale.

Read the above document OP - do you believe you would be entitled to ESA in your own right?
If so - you might consider going off IS and into ESA, with its higher permitted work limits.

inspirespirit

thank you Roger. I have read page 17 of the document and I'm pretty much certain I would fulfil the criteria as I have triple compartment arthritis in both knees so the walking is an issue and I have another medical issue too. I really don't know what to do. If I sit and make stuff out of the materials I have here, then surely they are my personal possessions until I decide if and when I will sell them. This 5 - 20 per week is a problem because how will I know if Im going to sell anything one particular week. I was thinking more of creating stuff to sell at a craft fair, so I probably wouldn't make anything for a number of weeks but then (hopefully), a lot in one weekend. This is why I'm asking on here and I really do appreciate your advice because once I start the ball rolling officially, Im worried I will end up with no benefits and not making any money. I certainly won't do anything that could be labelled as Fraud. I'm just not that type of person. I wouldn't be able to sleep at night.

Mojisola

inspirespirit wrote: »

I was thinking more of creating stuff to sell at a craft fair, so I probably wouldn't make anything for a number of weeks but then (hopefully), a lot in one weekend.

The work involved with getting to, setting up and manning a stall at a craft fair can be hard work. Given your health problems, it that feasible?

inspirespirit

I have a healthy 25 yr old son who I know would take me and set everything up for me and do the same again at the end of the craft fair. I would probably take a friend as well. I was thinking it would be a nice day out and hopefully make some money. I could set up a facebook selling page too, and hopefully get some orders to work on in between craft fairs. If I was fit and able, I would organise and run Craft Fairs as there just aren't enough of them for Crafters to go to to sell their wares, but I do realise my limitations, and know I am not able to do that whilst also caring for my son.