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part time selfemployed on ESA/Housing benefits...

bill_rogers
bill_rogers Posts: 21 Forumite
edited 7 February 2018 at 3:15AM in Benefits & tax credits
Friend of mine is sick on ESA support group, DLA middle rate care and lower rate mobility total £265.65 per week plus full housing and council tax benefit.

A company offered him a freelance job working from home, pay would be based on how much work he does in a month or year but total would be around £10,000 a year. Would work out £20-£40 per hour; mostly working on his computer. so 5-10 hours per week.

Company want NI number etc and since he would be self-employed would need him to invoice them for payment.

They also want his or a beneficiary bank account.

If he does the work, how might such money approx. £10,000 a year affect all his benefits.

Currently he doesn't have much savings. under £1,000

Is there any way around him doing the work and still receiving his full entitlement?

For example could he do the work and have the money paid into a relations bank account.

The company want the work from him, i.e. in his name, cos he is kind of a bit famous within the certain industry the company offer services in, he can't ask someone else to do the work in their name for instance. Has to be in his name and his own work, he can't even pay someone else to do the work for him at a lesser price while invoicing the company for how much they have agreed to pay him if he signs the contract because of intellectual property rules within the contract. Plus not likely anyone would be able to do what he can.

He doesn't want to do the work for £10,000 only for him to lose benefits of the same amount plus having to go through all the paperwork connected to ESA/Housing etc. It would be like his working for nothing if he loses benefits. And he cannot be sure if the work will continue for more than 6 months, 1 year etc. It might only last 3 months or 2.5k worth, no one knows.

If anyone has any ideas?

Like for instance, could he open a charity, could he give the money away what he might earn so as that it would not affect his benefit?

Would he have to pay tax on the £10,000 there would be little expenses maybe £2,000 max.

Please anyone if you know the law and what legally could be done I would like to hear all views. Legally tell the company his NI but at the same time give the money away so that his NI would not be affected and therefore not affect his benefits? If this makes sense.

As if his name is being used (even though he does the work for the money) but he is not benefiting from the funds he might receive if he wanted those funds to go to a relative say?

Comments

  • poppy12345
    poppy12345 Posts: 18,918 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Friend of mine is sick on ESA support group, DLA middle rate care and lower rate mobility total £265.65 per week plus full housing and council tax benefit.

    A company offered him a freelance job working from home, pay would be based on how much work he does in a month or year but total would be around £10,000 a year. Would work out £20-£40 per hour; mostly working on his computer. so 5-10 hours per week.

    Company want NI number etc and since he would be self-employed would need him to invoice them for payment.

    They also want his or a beneficiary bank account.

    If he does the work, how might such money approx. £10,000 a year affect all his benefits.

    Currently he doesn't have much savings. under £1,000

    Is there any way around him doing the work and still receiving his full entitlement?

    For example could he do the work and have the money paid into a relations bank account.

    The company want the work from him, i.e. in his name, cos he is kind of a bit famous within the certain industry the company offer services in, he can't ask someone else to do the work in their name for instance. Has to be in his name and his own work, he can't even pay someone else to do the work for him at a lesser price while invoicing the company for how much they have agreed to pay him if he signs the contract because of intellectual property rules within the contract. Plus not likely anyone would be able to do what he can.

    He doesn't want to do the work for £10,000 only for him to lose benefits of the same amount plus having to go through all the paperwork connected to ESA/Housing etc. It would be like his working for nothing if he loses benefits. And he cannot be sure if the work will continue for more than 6 months, 1 year etc. It might only last 3 months or 2.5k worth, no one knows.

    If anyone has any ideas?

    Like for instance, could he open a charity, could he give the money away what he might earn so as that it would not affect his benefit?

    Would he have to pay tax on the £10,000 there would be little expenses maybe £2,000 max.

    Please anyone if you know the law and what legally could be done I would like to hear all views. Legally tell the company his NI but at the same time give the money away so that his NI would not be affected and therefore not affect his benefits? If this makes sense.

    As if his name is being used (even though he does the work for the money) but he is not benefiting from the funds he might receive if he wanted those funds to go to a relative say?
    No, he wouldn't be able to do the work and give the money away, or have it paid into someone elses bank and still keep his benefits. This would most likely be classed as fraud.

    The amount of pay he would get would be too much for permitted work to be allowed with ESA. He could try the work and if it doesn't work out then a rapid reclaim for ESA could be possible if it's within 12 weeks.

    Can't answer the other questions, but i'm sure someone will come along and answer them.
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