Working and being on LCWRA and PIP

lola76

Hello

I'm new here so I'm sorry if post something I shouldn't.

I'm on UC LCWRA and low PIP..I suffer with severe anxiety and depression and have fibromyalgia and nerve damage including carpal tunnel and other things.

My question is if I can work from home and not lose my benefits.

I'm a creative person have made things for friends in the peace of my own space. I don't cope well with people and noise overload because my brain shuts down. I don't really leave the house. So long story short in lockdown I was bought some crafting stuff. I can design some brilliant things when given time and be alone.

Would I be able to start a small business from my home? Obviously can have supplies delivered, I have shop over the road to post things. I definitely wouldn't earn over the monthly allowance because if I shut down I wouldn't be doing anything.

If this is a feasible option for me who do I speak to.. obviously I have no work coach so I really am looking for advice and hopefully from someone who has been through the same.

Thanks for taking the time to read 😊

poppy123456

PIP isn't affected by working. For UC then yes you can work while claiming this. If you do start working you must report a change and tell them you're working. You would be treated as self employed. You will need to attend a short gateway appointment with a work coach as this is standard procedure when working self employed.

As you have LCWRA for UC then you can't be found to be gainfully self employed. However, you would be expected to report your earnings and expenses on your journal on the last day of each assessment period.

You also have the work allowance for UC which means some of the earnings you receive each month are ignored before deductions apply. If you claim for help with the rent your work allowance will be £404/month, if you don't it will be £673/month. For every £1 of earnings received over those amounts your UC would reduce by 55p.

If you expect your earnings to be more than £1,000 you must register as self employed with HMRC.

https://www.gov.uk/working-for-yourself

lola76

Thanks for you reply. I understand the pip element. I just don't want to get in a middle because to be honest I probably won't make anything like the threshold.

Can I ask what does gainfully self employed mean? Thanks

poppy123456

You’re ‘gainfully self-employed’ if your self-employed work is:

• your main job or main source of income
• organised, for example you keep records of your business activities
• developed, for example you have a business plan or are advertising the work you do
• regular, for example you have steady work now and in future
• expected to make a profit

However, that's irrelevant anyway because you have LCWRA so it will not apply to you.

lola76

Thank you again, however I'm still confused. So you said all that doesn't apply to me because I receive LCWRA ..So what exactly do I need to do and how do I prove what I earn etc

poppy123456

As self employed you will need to keep records of your earnings, what you buy for your business and any other expenses you have. If your earnings are more than £1,000 annually then you will need to register as self employed with HMRC, please see the link i provided above.

For UC you will need to report earnings and expenses on your journal on the last day of each assessment period.

carbow32

I do this on LCWRA. I make items and sell them. I have been doing so for about 18 months.

I was told by a work coach that before I advertised anything I had to register as self employed via the Journal. I did this and I was up and running. I did not have to go to a job centre interview or speak to anyone on the phone.

The last day of my assessment period per month I have to log in and tell them how much I made and the expenses I had to make / sell those things. They send a text message every month to remind me.

I enjoy doing it but it also creates a dark cloud following me of could they use this against me a reassessment and change me to LCW.

I have never earned above the work allowance so I have never had any deductions.

Hope this helps.