flat rate - ESA and property rental

elliebellie

Hi
Just need some clarity please, feel like I’m going mad, what I’m being told by CMS can’t possibly be right can it??
A NRP on contribution based ESA (lives in a mortgage free property)

• can earn up to £125 per week (to a max of 16 hours) for permitted work
• receive rental income from 3 properties – approx. £450/500 per month

only has to pay a flat rate of £7 child maintenance per week???

HoneyNutLoop

If his profits, after deduction of any allowable expenses, from the rentals exceed £2500 a year, you can apply for an unearned income variation. CMS only look at full tax years for this type of variation, so if he’s only just started renting the properties out, you wouldn’t be able to get a variation at this time.

If he is working and earning more than £100 a week you can also apply for an earned income variation. If he isn’t actually working or he is but earning less than £100 a week, then you wouldn’t be able to get a variation.