Self employment and UC

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didiflury

Hello

I am a single disabled mum to three children , two of which are also registered disabled due to severe mental health illnesses and trauma/ptsd

I left an abusive marriage in 2018 and my ex husband abused me and my children in the worst possible ways. He was finally sentenced to 18 years in prison cat A in October 2023.

I completely rely on universal credit / pip / esa and child benefit. My two girls are also in receipt of pip and dla. High rate care / low mobility

We have started a hobby that could generate money now and again and I am aware this needs to be declared to HMRC under a self assessment ...

i would never NOT declare any money coming in , I have too much to lose..however , I really don't know how this will affect my universal credit claim and Esa

I am in the support group of ESA . Does the minium income threshold apply to me even though I am not required to work.

Basically , my girls create knitted/crochet creations and would like to open an etsy/ebay or vinted little business . They are too young to pay tax so i would register under my name and give them their money accordingly

On top of trauma and severe ptsd , I have pip ongoing due to 3 previous strokes, crohns and lupus , severe arthritis and raynaud

Is there any way someone could advise me and help please

Many thanks

Didi

poppy123456

As you're claiming both ESA and UC the rules for both are different. For ESA permitted work rules apply. This means that you must make sure it's less than 16 hours/week you're working and your earnings are no more than £183.50/week. Anymore than that and your entitlement to ESA will end. You must tell them you're working and you'll need to fill out a PW1 form and return it to them. See link.

https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheet

For your UC permitted work rules do not apply. Instead you'll have what's known as a work allowance. This means that you can receive a certain amount of earnings each month before deductions apply. If you claim for help with your rent your WA will be £404/month, if you don't it will be £673/month. For every £1 of earnings received over those amounts your UC will reduce by 55p.

If you start work you must report the changes to UC by logging into your journal (if you have access to one) and report a change of circumstances. Then click work and earnings and report being self employed on there.

You will need an appointment with a work coach due to being self employed but this appointment will be very short because your UC includes the LCWRA element and you will not be found to be gainfully self employed due to LCWRA.

As self employed you will be need to report your earnings and expenses on your journal on the last day of each assessment period.

You will only need to register as self employed with HMRC if your earnings are more than £1,000/year.