any advice on benefits & partners payroll?

crumbling

i haven't visited the board for a while but i was overwhelmed at the help and support i received when i was in a very dark place. i hope someone may be able to offer me advice on another problem?

following an accident where i sustained a serious head injury, i have been unable to work (i was dismissed from my 22 year employment on the grounds of incapability). i have other health and mobility issues on top of this and i am in receipt of contribution based esa (support group following appeal) and dla (low rate care and higher rate mobility).

my partner works as a contractor and has therefore set up his own company. his accountant keeps suggesting that he adds me to the payroll (something to do with my tax allowance i think) but i am unsure of the implications that would have on my ESA and DLA.

i am not able to actually do any work for him and he works away from home during the week so i'm really quite confused as to what this being on the company payroll would mean.

could anyone offer me any advice please? it all sounds dodgy to me:(

TELLIT01

I'm presuming that adding you as an employee is a method of legally reducing tax liability. If you were paid £10k per year, there would be no tax payable on that income. However that would give you an income of about £200 pw which is above the limit for permitted work. To be honest, I'm not sure how, or if, that would affect you as you are in the Support group.

HappyMJ

Not dodgy just a tax minimization technique. You'll be claiming sick pay from the company so you won't be doing any work for it until you are fit again and then it won't be much. You just help your partner collate the information to do his accounts and similar things. Maybe make him a cup of tea whilst he's working you can be the company tea lady. It'll minimize your partners company's tax liability.

crumbling

so i would be on the payroll as a sick employee rather than continue to claim esa? hmmmm.....don't like the sound of that as contracts in his field of business usually run for 3 months at a time, sometimes 6 months so it would leave me feeling somewhat vulnerable if he was without a contract for a while.

crumbling

i think i'll leave things as they are. sounds like a minefield. thank you
(mine you, tea lady for 10k per year sounds quite an attractive job:p)

Indie_Kid

DLA is non-means tested. Your DLA is only affected by work if your role contradicts your care and /or mobility needs.

Horseunderwater

With the ESA Supp Group - you could legally earn £101/week (£104 1st Oct 14) after tax & NI under the higher earnings rules, but you should not do more than 16 hours in the week. Also it's not time limited to 52 weeks like it is for those in the WRAG. You would need a PW1 form to complete as DWP have to give permission. You keep the ESA & the PAYE. Currently £5252 PA(£5408).

crumbling

thank you. very useful info.

i wish i could work 16 hours per week. even 6 would be nice. if i decide to make any changes, do i need to contact dwp for the forms you mention? do i have to wait for them to approve it?

eta - apologies. you had already answered my question. its obviously time for bed as i'm not even able to retain the info i've just read.

Horseunderwater

Just ring up ESA dept & ask them to send the PW1 out. Upto you then, but just because you fill one out & send it back does not mean you have to work, it just gives you the option to.

crumbling

would benefit likely be suspended if i asked for a form as they may presume i had started work anyway?

Horseunderwater

Not at all.