Starting up a small business whilst on ESA

Tinks07

Hi there.

im getting really confused by all the different types of advice I’ve been given. I want to turn my hobby into a small business. I won’t be making any profit for a few years & due to my illnesses will only be working a max of 10 hrs per week. I’m on support ESA & wondering how if will affect my benefits. I’ve even spoke to 2 diff advisors & 1 said I can earn up to £120 per week & work up to 16 hrs per week & another didn’t know. Please can some1 help, I find things difficult to understand at the best of times. Many thanks Tinks07

Sam_Alumni

Welcome to the community @Tinks07

There is some information about self employment for disabled people here, I hope it helps.

@pia_scope or @rian_scope can you help?

poppy123456

For permitted work it's less than 16 hours, so no more than 15.59 hours per week and earn up to £120 per week. You MUST inform ESA and ask them to send you a PW1 form. Google search gives the info you need. See this link.
https://www.entitledto.co.uk/help/Permitted-Work-Rules

Rian_Alumni

@Tinks07

Good Morning TInk07 I am Rian from Scope Support to Work.
I can only echo what Poppy has said as this is the information i would provide.

Tinks07

Thank you so much ev1, they are sending me out a permitted to work form. Its just a worry as it wont be regular income or hours (max hours I can craft for a week is around 10 hours & there could be 1 week I might make a sale then nothing for months). At least they have been informed & as I said they're sending me out the form.

Again many thanks everyone xxx

[Deleted User]

Hi Tinks07

Do check before you give up your ESA whether you are in a full service Universal Credit area.

If you are, and irrespective of whether you would be better off on this benefit than on your current ESA or not, you would not be able to re-claim the benefit if you have to have benefits again because the work doesn't work out. 

It's fine to decide to do the work anyway, but it is helpful to know that you are taking a risk with your income, if you are. 

Check your geographical area's universal credit status here:
www.entitledto.co.uk

Do a benefit check to see how your change of circumstances might affect you here:
https://www.scope.org.uk/support/disabled-people/benefits/check

Best wishes

Gill_Scope
Benefits and Finance Information SPecialist
Scope Helpline
Tel: 0808 8003333 

mayfish

Hi, I've just posted a similar question, I'm wondering if you found an answer? 

poppy123456

mayfish said:

Hi, I've just posted a similar question, I'm wondering if you found an answer? 

The permitted work rules are in a comment above. Here's link that explains it.

https://www.entitledto.co.uk/help/Permitted-Work-Rules

Tinks07

Hi there Mayfish
I went to CAB & the rules are you can work up to 15 hrs 59 mins per week & not earn over £120 per week. That’s what they advised me & the 1st person at DWP said the same too even though the other person at DWP wasn’t sure but after seeing CAB & reading the little info I’m sure to say that’s the rules without it affecting your benefits xxx

BenefitsTrainingCo

Hi all,

The information given by Tinks07 is correct. I would add though, that if someone does permitted work, it may lead to the DWP bringing forward their review for the Work Capability Assessment. I'm not saying it will, because it doesn't always happen, but it is something to consider when making a decision.

Lee

mayfish

Hi Lee, thanks for this  It's something I'd already thought about as a side effect. And would have my answers primed if that happened! But thanks for coming back to me.
I guess the bit I'm stuck on, is how to account for items sold vs costs.
Thanks
Paul