Scary letter from ESA

MaisieBoohoo

Hi
i am writing this for my cousin as his broadband has gone up creak
he has received support group esa contribution rate for 2 yrs, never worked, as just not able. In May a university friend asked him about private work he did years ago and wanting to get hold of it. He said as it was his private scientific data, he would give it at a price. So the guy went and spoke to university and they agreed a price of £4,000 but they could not just give it too him, they would give him a 6 week contract and they would pay like that. Now he is not very benefit savvy, so he did it and not not contact esa, as he said to me, if an artist painted a picture 20 yrs ago, why would he be working if sold…
we have sat down today and written back, explaining all this including hospital report that he had been just diagnosed with heart problems when he was supposedly working
what do you think will happen, he also suffers from anxiety and depression and he is beside him self as an honest person.
thanks

calcotti

If he is treated as having done six weeks work for £4000 he will not have been entitled to ESA for those six weeks and will have been overpaid.

MaisieBoohoo

@calcotti. Thanks, but he did not actually do 6 weeks only got his data, put in report form, max 5 hrs work.it’s purely because university could not hand over funding as a payment…..

calcotti

MaisieBoohoo said:

@calcotti. Thanks, but he did not actually do 6 weeks only got his data, put in report form, max 5 hrs work.it’s purely because university could not hand over funding as a payment…..

I understand that. I said “if”. However I think it likely that he will be treated as having worked because, from what you said, he had a contract of employment for six weeks. However it’s an odd situation. Do you know if he had tax and NI deducted through PAYE?

MaisieBoohoo

@calcotti..yes they did deduct tax and no as he only received £3000 in the end

calcotti

MaisieBoohoo said:

@calcotti..yes they did deduct tax and no as he only received £3000 in the end

That definitely looks like employed earnings then. In due course he will be able to get the tax back (if ESA and the £4000 are his only taxable income) but not the NI. An obtuse arrangement by the university but no doubt dictated by some rule book.

MaisieBoohoo

I think he is worried they will think it is fraud, which he is the sort of person never to do that and has no ongoing offer of work
he never had an interview or checked his paperwork, so obviously not a job, as he is a Dr of biology….no one takes someone on at that sort of job without interview or certificates…..very frustrating…thanks though

janer1967

Payments made will have reported to tax system and will have shown as earnings on dwp system so as above will have made his esa not eligible 

MaisieBoohoo

Will they stop his Esa altogether do you think?
thanks for your help with this…I am on and off phone reading replies….
he is more than happy to repay money.

poppy123456

MaisieBoohoo said:

Will they stop his Esa altogether do you think?
thanks for your help with this…I am on and off phone reading replies….
he is more than happy to repay money.

When he was working for those amount of weeks, earning a large amount of money then his ESA should have completely stopped. Once it stopped then he wouldn't have been able to reclaim it if he didn't have enough NI contributions in the previous 2 tax years, which would be unlikely as he hasn't been working.

I wouldn't like to guess what could happen here but he'll definitely have an overpayment for at least the amount of weeks he worked. Does he claim any means tested benefits like housing benefit? If so then there could likely be an overpayment of housing benefit too, with earnings of that amount.

calcotti

Because the period has been and gone I would hope they will do a closed period supercession and simply stop the ESA for the six week period, this will then be an overpayment. There may also be a penalty charge for not reporting.

poppy123456 said: When he was working for those amount of weeks, earning a large amount of money then his ESA should have completely stopped. 

Because OP only refers to contribution based ESA (presumably new style ESA if only claimed for two years) the amount of money isn’t the issue other than the fact it is more than £143/week and therefore exceeds permitted work limits thereby ending ESA entitlement.

MaisieBoohoo

Hi thanks everyone
@poppy123456 no he does not get any means based benefits, contributions based esa support group  at about £120  all he gets. It would of clicked with him If he was getting any means based benefits. He does not claim anything else despite now not having much money due to being sick for years and not claiming anything….this money was actually to sort his failing car out..
although £3,000 after tax and ni  sounds loads, he essentially sold his life’s work for the data, which has not helped his depression much….
So when you say “when you were working for 6 weeks” it was not even like that…..it’s such a stupid situation, damm the university
thanks everyone

poppy123456

calcotti said:

Because the period has been and gone I would hope they will do a closed period supercession and simply stop the ESA for the six week period, this will then be an overpayment. There may also be a penalty charge for not reporting.

poppy123456 said: When he was working for those amount of weeks, earning a large amount of money then his ESA should have completely stopped. 

Because OP only refers to contribution based ESA (presumably new style ESA if only claimed for two years)

I would say it's not NsESA based on this comment..

MaisieBoohoo said:

Hi

he has received support group esa contribution rate for 2 yrs, never worked, as just not able.

Therefore, potentially Contributions based (if they transferred from Incapacity benefit)  with an Income Related top up. Or even just Income Related, given the amount of people that get so confused between them both. It doesn't matter which one for the earnings part but for any potential savings/capital then it does matter.