ESA SG Permitted Work

whambam

I understand you can work unlimited number of hours, however you cannot earn more than 115.50 per week or else you either lose ESA SG or it reduces for that week? so if it's a penny over that amount do you lose ESA?

Now that is the income before Tax/NI/Pension deductions however everyone gets a tax free allowance so how would that work out would i lose my ESA working 16 hours per week on permitted work?

nannytone_2

it also has to be less than 16 hours
50% of pension contributions are ignored.

on that income, there would be no tax or NI to pay, but if you already pay tax, you will have to pay tax at the usual rate.
the wage would be before tax is taken

whambam

are they minimum amounts you need to earn to pay tax and NI? I didn't know you get a national insurance contribution allowance per year? How much is it for? I know for tax free allowance is 10500 per year.

Darksparkle

whambam wrote: »

are they minimum amounts you need to earn to pay tax and NI? I didn't know you get a national insurance contribution allowance per year? How much is it for? I know for tax free allowance is 10500 per year.

The personal allowance for tax is currently £11,000.

NI varies depending on if employed or self employed.

https://www.gov.uk/national-insurance/national-insurance-classes

TELLIT01

whambam wrote: »

I understand you can work unlimited number of hours, would i lose my ESA working 16 hours per week on permitted work?

You can only work less than 16 hours per week on Permitted Work, irrespective of the group you are in. 16 hours per week or over would have an effect on your ESA. A single week would probably just mean suspension of payment for that week, but only a call to ESA could confirm how it would be treated.
If you receive HB, a suspension of ESA could have a knock on effect.

whambam

my understanding is a wages of £116 per week invalidates your ESA for good however if you earn £120 taking your tax and NI into account takes it down to £100 odds however you have allowances on Tax and NI so unsure. Apparently, once you start work a decision maker decides they could take off some ESA depending on your wages but you cannot work more that 15 hours 59 mins she said!

TELLIT01

whambam wrote: »

my understanding is a wages of £116 per week invalidates your ESA for good

If income of £116 does lead to the automatic closure of the ESA claim, a new claim could be made from the following week assuming payment had reduced again. This would link to the previous claim so the claimant would go straight back into the Support Group.
It's some time since I worked on ESA and at that time a more pragmatic approach was sometimes taken. It's far less work all round to nil payment for a single week and then proceed normally than it is to close the original claim and require the claimant to make a new claim.
Unfortunately, the 'National Checking Team' don't understand the real world of benefit processing and now would almost certainly insist on the rules being applied to the letter. After all it's not them who have to do all the extra work, or face the wrath of the claimant when staff in the BC tell them what they need to do.