ESA Support when starting as up a a sole trader?

CommonMinds

Hello,

I have been on ESA for at least 3 years now due to having schizophrenia. I have good spells of time and bad ones.

I have the opportunity to take over a small gardening round come March/April next year. It’s it flexible in the sense it would not be running a capacity so that I could move visits about if I’m having a bad time of it. I have a van already and access to all the equipment needed.

My concern is that I stop receiving ESA, I fall ill and lose business, can’t afford my bills and end up homeless again. Even with his in mind, I really want to try and get on with life now my treatment gives me some rest bite from the condition.

I understand that I would need to set myself up as a sole trader, self asses and book accounts. I do not understand if I would get any support from the ESA benefit.

I have had my latest assessment 4 months ago. I feel I should speak with someone at DWP in regards to this but I don't want to trigger any flags that will lead to another assessment so I am seeking knowledge here.

Any information would be greatly appreciated, especially if you have been in the same situation.

Many Thanks

IAmWales

https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/employment-and-support-allowance/while-youre-getting-esa/working-while-getting-esa/

Have a look at permitted work.

You need to advise the DVLA of your condition if you have not done so already.

pmlindyloo

You can do Permitted Work whilst on ESA as long as you don't earn over £120 per week and do less than 16 hrs per week.

https://www.gov.uk/employment-support-allowance/eligibility

You would need permission to do this from the DWP so the first step is to speak to your work coach.

Earnings from Permitted Work would not affect your ESA or HB/CT support so it is perfect for you.

Your work coach should be able to help you with organising your expenses and keeping good accounts so you keep within the earnings limit.

Once you are doing this permitted work then you can look at your situation again and make a decision as to whether you continue indefinitely on Permitted Work or not.

It might also be worth having a word with your doctor/medical professional to find out about the likelihood of recurring 'episodes/ managing medication etc. whilst working.

Do you claim DLA or PIP?

CommonMinds

Thank You,

I have no work coach and as far as I know I am not in receipt of DLA or PIP. I would rather not have to deal with further outside interference like a work coach as I would become stressed which is a key element for creating episodes.

From the medical side of things I have now learnt how to manage my condition. My life have greatly improved due the medication but it is not full proof. This leads to weeks of isolation when it gets the better of me. This is why the opportunity seems like a large workable step.

When should I contact DWP? Nearer the time or get cracking now?

Would I still follow the same process in regards to setting up as a sole trader? How do I inform DWP of what I potentially may earn? Do expenses come into play where I can deduct earning from the £120 limit, eg MOT, Insurance.

Thank You ever so much for you help

pmlindyloo

You don't need to contact the DWP until nearer the time.

In the meantime you could make yourself familiar with how to keep records as a sole trader.

I understand that you don't wish to speak to a work coach but my thinking was that they may know of a course that would prepare you for starting self employment.

You could do some googling about how to keep records for someone self employed but reading about it can be rather confusing.

Personally I use an accountant as they are usually the best people to advise about what you can and cannot claim as regards expenses. Certainly my accountant talked me through what accounts I needed to keep.

I suppose it depends whether you are IT savvy as I believe there are various programs that can be used.

I am mindful that stress is a triggering factor for you.

Maybe someone else could help as regards the accounts side.?

In the end, if you can spare some money, an accountant might well be your particular way forward as it takes the stress away knowing someone else is sorting it out.

Do you know anyone who is self employed and could talk you through it?

Wig

You can't offset 100% MOT and insurance, petrol as expenses unless the vehicle is used solely for the business.


If it used partially for your private use then you must account for a % of the costs based on the % of private use.


If it is a van and you have a private car as well..then you can offset all the costs for the van.


You can also account for a small amount of the use of your home as where you do your accounts. I forgot how much I was allowed to offset by my accountant.


I recommend using an accountant, it's not too expensive and the service they provide is worth it...speak to your local taxi drivers and ask them who they use...I used a guy who worked out of his home, he did not have business premises.