Do I need to tell the DWP?

strenger

I'm claiming IR ESA and PIP. I've received a payment of £300 streaming proceeds for a music track that I submitted for a compilation album last year (I occasionally make music as a hobby). Because my benefit is income related I assume I have to tell the DWP about this? I want to do the right thing but I'm worried about getting in trouble and having to go through some huge rigmarole over a small sum like this. If I tell them, what will actually happen? If I don't tell them, what will happen? Any advice appreciated.

Newcad

Yes you should tell ESA, the PIP isn't affected.

IR ESA might be affected, so it's better that you tell them yourself rather than saying nothing then them finding out later, asking questions about possible benefit fraud, and possibly wanting a lot of IR ESA paying back.

Whether/how IR ESA would be affected depends on how they view the money.

I believe that in this case it might be treated as 'Royalties' and as such would be calculated over a period of weeks,  so would fall under Exempt Work (Permitted Work) rules and may not affect entitlement to IR ESA.

There's an example royalties calculation at DMG 50076: https://assets.publishing.service.gov.uk/media/61976ff0d3bf7f055fce727f/dmgch50.pdf

If however they decide that it was Self Employed Income it would mean you have earned too much in the week that you received it to qualify for IR ESA.
They have been known to simply close the claim in such cases for exceeding the Exempt (Permitted) Work earnings rule, if they do that then it's MR and appeal time.

HillStreetBlues

What date period does the £300 cover?

strenger

Newcad said:

If however they decide that it was Self Employed Income it would mean you have earned too much in the week that you received it to qualify for IR ESA.
They have been known to simply close the claim in such cases for exceeding the Exempt (Permitted) Work earnings rule, if they do that then it's MR and appeal time.

Good lord, I wasn't aware of that. That would be devastating for me. I already had to go to tribunal to get my current award. I don't think I could cope with the stress of going through all that again. Why do they make it so hard to do the right thing.

Newcad

My personal belief is that they have got tougher on Permited Work hours and earnings in the last year or so, probably in order to 'encourage' those who can manage any work to move to UC.

Of course if you had been claiming UC with LCW/LCWRA rather than IR ESA then the payment would just be earned income and at £300 would be below the UC Work Allowance that you get with LCW/LCWRA, so would not affect UC at all.

Moving yourself to UC is something to consider if you may be getting any more such payments.
If you do it while already (still) having ESA then your ESA group will automatically carry over to a UC LCW/LCWRA element.
Be very carefull if you have SDP with your IR ESA though, moving yourself means that there will be no Transitional Protection so you could loose out.
Use a benefit calculator to see what you would be entitled to with UC: https://www.entitledto.co.uk/

strenger

HillStreetBlues said:

What date period does the £300 cover?

It's over a year

HillStreetBlues

An option to look into is if you could become self-employed so would have to declare profit. So any costs for making the music including any equipment would be counted against any income leaving profit.