Starting a buisness on ESA.

dafteric

Hi,

I have been in receipt of ESA Wrag since February and I was thinking of starting a small business on permitted earnings. I have my permitted work form almost completed and there are a few worries:

1) I only aim to make £20 a week at the beginning, will I still have to sign up for Tax on HMRC as a sole trader?

2) ESA Wrag comes to the end of next February, and I have been told that those that are self employed can't claim JSA, I'm just wondering if there would be other help available if my business is still not bringing in much money?

I still have to see if my permitted work form will be accepted by the DWP, I have worried quite a lot about this matter, so if there has been anyone who has been in my position who can help I would be grateful.

TELLIT01

What is your family situation? Are you single, married, kids? If you have a partner do they work and if so how many hours per week and approx income. All relevant to anybody trying to provide an accurate answer.

dafteric

Hi,

I'm single, living with my parents, no partner.

dafteric

Only 3 or 4

dafteric

I've stated 4 on my Permitted Work form.

rogerblack

You can do permitted work at 3 or 4 hours a week, and 20 quid a week.
yes, you need to apply to HMRC and register. It's very, very easy.

'ESA comes to an end' - have you consdiered if you should appeal to be put into the support group?
if you were in the support group, it would not come to an end due to time limiting.

After that - working tax credit - though you would need to up your hours and earnings very, very considerably.

However - JSA is only payable if you have the contributions.
In Feb next year, they will be looking at tax years 2012/13 and 13/14.
You are likely not to have sufficient earnings to qualify in 13/14.

If you do not have a working partner, or savings >16K, then when contributions ESA comes to an end, you move over to ESA-income-based on the same money.

pmlindyloo

dafteric wrote: »

Hi,

I have been in receipt of ESA Wrag since February and I was thinking of starting a small business on permitted earnings. I have my permitted work form almost completed and there are a few worries:

1) I only aim to make £20 a week at the beginning, will I still have to sign up for Tax on HMRC as a sole trader? As a sole trader you are self employed and even though you are only working part time you need to register as self employed for tax purposes (even if you won't need to pay any tax) See here: http://www.hmrc.gov.uk/working/intro/casual.htm

2) ESA Wrag comes to the end of next February, and I have been told that those that are self employed can't claim JSA, I'm just wondering if there would be other help available if my business is still not bringing in much money? Why is your ESA Wrag coming to an end? Probably because you are receiving contribution based ESA. At the end of the year's contribution based ESA you can still claim income based ESA as long as you meet the criteria (savings wise) However, in the WRAG group you are only allowed to do permitted work for 52 weeks.

After the 52 weeks you will have to see how things are working out. If your business is doing well then you may want to come off ESA or if the business hasn't worked out then you can continue on income based ESA.

I still have to see if my permitted work form will be accepted by the DWP, I have worried quite a lot about this matter, so if there has been anyone who has been in my position who can help I would be grateful.

Come back if you have further questions.

dafteric

Hi,

I'm not eligible for ESA support group, I had a medical in February and lost my 16 year entitlement to Incapacity Benefit although I have had a long history with mental and physical illness.

But, my situation is thus, in the last 18 months both my parents have been diagnosed with cancer. I have to think of my future, the safeguards that have supported me for years, no longer exist. I am a qualified teacher and reiki practitioner. I did spend a short period on Jobseekers after the assessment in February - and can not recommend - I don't want to go back to that next year!!!!

I have had various arguments with my father, he seems to think I should have long term benefit support. After my assessment I contacted a legal adviser and he said that I didn't have enough of a case for the support group, the DWP reconsidered their decision of stopping my benefit after my counselor sent them a letter. They moved me on to WRAG on a very tiny technicality of ESA law, I don't think it would work a second time!

So there you have it, next year I can dwell in a world of JSA with constant sanction threats and general disrespect from an uncaring public or, I can start and do something, that may fail, but could also be, maybe sucessfull!?! What would you do??

dafteric

My next medical is next May, two and a bit months after my ESA ends :-/

pmlindyloo

Why do you think that your ESA is ending? Are you not eligible for income based ESA?

dafteric

I've been told so, contribution based ESA Wrag for me ends at the end of February and then I have to apply for the other kind. But I have been told I have my next medical next May. Next year is going to be a !!!!! Last chance Saloon really the time I have now :-/