Permitted work on ESA

cj1413
cj1413 Online Community Member Posts: 2 Listener

Hi all, 

I am in the support group for ESA and I have an opportunity to work self employed a couple of hours tops a week selling books online. I would not reach anywhere near the 16 hours per week or the £183.50 earnings a week that I have seen mentioned. 

A few questions are; do I have to declare this as permitted work? If so do I have to pay any NI or tax?

Also am I allowed to work? I have seen mixed opinions online on whether I am allowed to work at all as I am in the support group. I am very confused! 

I am definitely not well enough to work more than a hour or two a week so I don’t want to declare anything if it could affect my ESA pay. Especially as I don’t even know if I will be well enough to continue with this venture but I want to give it a go. 

I could do with some advice as I am very confused when searching about it online. It isn’t very clear, some things mention about no more than £20 a week too?  

I would really appreciate some help or advice please.

Thanks so much. 

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    Yes, you will need to report this and fill out a PW1 form. You need to tell them you'll be self employed. You maybe asked to send in proof of your earnings and expenses sometime in the future.

    Permitted work earnings limit for the claimant named on the ESA it's less than 16 hours per week, with earnings of up to £183.50/week. The £20 earnings limit is for a partner.

    The personal tax allowance is £12,570/year with taxable income of less than that you will not have to pay tax.

    You would not need to pay NI contributions if your profits are less than £6,725/year. If more than that you can pay them if you want to.

    https://www.gov.uk/self-employed-national-insurance-rates

    Please also note if your self employed income is more than £1,000/year you will need to register as self employed with HMRC.

  • Jimm_Alumni
    Jimm_Alumni Scope alumni Posts: 5,717 Championing

    Hey @cj1413, welcome to the community 😊 As you describe it you will be well within the permitted work limits for ESA. Though there are a few other things you will need to consider depending on how much money you do make self-employed across the whole year that Poppy has also very thoughtfully brought up!

    I wish you the best of luck with your business! And please do ask any other questions you may have 🙂

  • cj1413
    cj1413 Online Community Member Posts: 2 Listener

    Thank you both. You have been really helpful.

  • miat
    miat Online Community Member Posts: 3 Listener

    I’ve just joined this group to find out similar so thank you for this. I have been offered a few hours working for a friend from home, helping her with her business. The hours are just when I’m well enough so may not be consistent. I will be classed as self employed. My question is, it states The work has to be supervised by a professional support worker. And then mentions the form needs to be completed by A professional support worker too?

  • miat
    miat Online Community Member Posts: 3 Listener

    thank you