How does self employment affect benefits?

RollingJovi

I’m currently mentally impaired with Paranoid Schizophrenia and I want to start up my own social media marketing agency but I’m currently in receipt of Universal Credit and Employment and Support Allowance Contributions based. 

How would I become a sole trader and make sure that the move to try release myself from state benefits and become financially independent isn’t a difficult process?

I do not want to be left without money to survive and pay my rent so any help would be greatly appreciated. 

Thanks in advance

calcotti

The ESA is not means tested but you would have to declare your work and if you work for 16 hours or more per week or earn more than £143/week your entitlement to ESA ends.

For UC there is no limit to the amount of work you can do but if the work contradicts the reason you have been found to have LCWRA that may result in an early reassessment.

Every month you will have to report your monthly income and expenditure to UC and your monthly payment will not be processed until you have done so. The difference between income and expenditure will be taken as your earnings. The earnings you have will reduce your UC by 63% of anything overyour a Work Allowance.
Guidance here
https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/universal-credit-and-self-employment-quick-guide
https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/self-employment/