ESA Permitted work for Self Employed?

DaveWhite

Hi

I am currently on contribution based ESA after a head injury that stopped me being able to work full time.

I am getting better very slowly, and think I may be able to do a bit of work soon. Obviously no one is going to employ me with my health condition as I can't guarantee when I can work, its as and when my head allows!

I was working in IT, and have got everything I need to start a computer repairs business. I was hoping I could do this under permitted work, as I won't be working more than 16 hours a week.

Is self employment eligible for permitted work?

How do they rate what you are earning per week, when you have start up expenses?

Thanks

D White

WillowCat

Yes self employment is allowed.

I'm just starting to look into this myself. No-one will employ my partner due to the medications he is on and variability of his condition, so we are looking to set up a business together.

Lots of info on here http://www.disabilityrightsuk.org/work-people-living-disability-or-health-conditions

I've yet to find out how the income is averaged - the limits on earnings are strict and will be OK if they are averaged out over a period but will be interesting if on a week by week basis (i.e. make £200 one week, then nothing for three weeks....)

If you are in the support group you can earn up to £101 per week indefinitely, if not, then I think this is limited to one year, though you can earn £20 per week indefinately.

DaveWhite

I'm not in any support group, as I've only been on ESA since September, but from reading the DWP website I would be allowed to earn 99.50 a week?

DaveWhite

After reading this FOI request:

whatdotheyknow com/request/pw1_form?unfold=1#incoming-317533

(Had to edit the link because I'm not allowed to post one as a new user!!)

I am a little bit apprehensive about pursuing this - it seems they may either suspend benefits or review them every week... Not suitable for self employment.

D

rogerblack

This post goes into some detail on what permitted work is.

https://forums.moneysavingexpert.com/discussion/comment/64198620#Comment_64198620

Self employment is unfortunately lots more complex for permitted work purposes.
Yes, in principle, if it's considered appropriate earnings can be averaged.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/252040/dmg-vol8-consolidated-version.pdf
See also 48094 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/252055/dmg-vol9-ch48.pdf

DaveWhite

Thanks rogerblack, I have requested a PW1 and will fill it in with a covering letter.

newlookbeth

WillowCat wrote: »

Yes self employment is allowed.

I'm just starting to look into this myself. No-one will employ my partner due to the medications he is on and variability of his condition, so we are looking to set up a business together
nd out how the income is averaged - the limits on earnings are strict and will be OK if they are averaged out over a period but will be interesting if on a week by week basis (i.e. make £200 one week, then nothing for three weeks....)

If you are in the support group you can earn up to £101 per week indefinitely, if not, then I think this is limited to one year, though you can earn £20 per week indefinately.

:j


thank you so much its the best explanation of what is a complicated subject
I have tried to find out for so long.....and no one I spoke too has given such a good explanation.

DaveWhite

Well I got permission after submitting a PW1, in the form of a generic letter saying there are changes due to my earnings.

Does anyone know what happens with my NICs now? I am obviously still on ESA and I believe they are crediting my NICs due to this fact.

If I register as self employed on HMRC then I can set up a DD to pay my NICs, but I assume this isn't necessary due to my ongoing ESA claim?

DW

skater_kat

you fill out an exemption form

http://www.hmrc.gov.uk/forms/cf10.pdf

and you still get your stamp paid from the ESA claim

DaveWhite

Thanks for the reply.

Is this a dead certain that I need to fill this form out? Presumably ESA will pay my NICs whether I fill the form out or not.

The PR1 form didn't mention this situation, and I can't find any advice elsewhere about it.

I seem to remember the PR1 form said as long as I have permission it doesn't affect anything else.

DW