ESA contribution based support group plus pension can I work part time ?

carrie08

I’m currently receiving contribution based ESA support group and also £85 a week personal pension. I have been given the chance to work an admin job a few  days a month self employed. Is this allowed and how much can I earn if it is ? I don’t want to loose my ESA as I have fibromyalgia plus a few other illness and have another 8 years until my state pension .I could manage this on my good days so wondering if it’s viable? 

Thanks for all help in advance. 

calcotti

You must work less than 16 hours/week and earn less than £152/week. You must inform DWP.
https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheet

carrie08

Hi Calcotti thank you for your quick reply - is the £152 including my pension amount a week or can I earn that on top - I doubt it’s going to be much a week I will earn anyway but would like to make sure I’m correct informing DWP. 

calcotti

carrie08 said:

Hi Calcotti thank you for your quick reply - is the £152 including my pension amount a week or can I earn that on top - I doubt it’s going to be much a week I will earn anyway but would like to make sure I’m correct informing DWP. 

The pension has nothing to do with it. £152 is an earnings limit and pension is not earnings.

carrie08

Can you please advise is my understanding of this correct for working out the income - 

ESA  is not taxed new rate April 129.50 pw £6734

Pension is not taxed 85 pw £4420

Earnings of up to 152 week ie £7904 pa will be taxed  for anything over allowance of 12570 pa ie £6488 will be liable
for tax plus NI? 

Are my figures correct ? 

Thanks for confirming it’s bit confusing with the various amounts.

calcotti

Contribution based ESA, pension and earnings are all taxable income. If your total income is over £12570/annum then you will have to pay tax on the excess.

ESA and pension are not subject to NI.

ESA £6,734 plus pension £4,420 totals £11,154. That leaves £1,416 of your tax free allowance. Any earnings over that figure will result in a tax liability. If you earn £7,904 there would indeed be tax due on £6,488 (so tax of £1,297.60).

No NI will be payable if you are earning less than £167/week.

carrie08

Brilliant thanks for
confirming it’s put my mind at rest - thank you for all your help.