Permitted work and self employment on an ad hoc basis. Can you do it and safely maintain ESA?

francisg

Hi everyone, im a newbie seeking help and contribute to the online community.

Ross_Alumni

Hello @francisg

Welcome to the community, it's lovely to see that you want to join and contribute here. What is it that you are needing help with at this time?

janer1967

Hi and welcome to the community Feel free to join in or ask any questions 

chiarieds

Hi @francisg - & welcome to this friendly & supportive community from me also. It's great you want to join in & contribute; we all try to help each other, but first, how may our members help you?

francisg

Hi Everyone,
Thanks for reaching out.
My question relates to ESA permitted work and self employment on an ad hoc basis? Is there a safe way to do it maintaining your benefit and well being. 

chiarieds

Hi @francisg - your ESA won't be affected so long as you work less than 16 hours a week, & earn no more than £143 a week. You would need to let the DWP know if starting to work; there's a form to use online. Please see: https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheet

francisg

Thank you Chiarieds for the quick reply. It seems there is no limit regarding the number of weeks, Is that correct.?

chiarieds

That's correct @francisg

poppy123456

There's no limit to how long you can work for but you must stay within the earnings limit and make sure it's less than 16 hours per week.

Do be aware though, if the work you do contradicts the reasons why you're claiming ESA then you can be assessed early and the decision can go against you.

calcotti

For self employment you will have to provide accounts to DWP periodically so they can assess your self employed earnings.

francisg

Thanks All, comment appreciated and understood. Has anyone done self employment any tips?

chiarieds

Hi @francisg - I was self employed for many years initially selling bric-a-brac, then antiques, linen & lace & finally secondhand & antiquarian books.

 - The first thing is research, decide what you'd like to sell (is it something different, is there a gap in the market, etc?). Work out what your initial costs might be, & how much profit you might make. We sold secondhand goods all the time, so the profit margin was better than dealing in new goods, but then, as with any business, you have to find your market.

- Start small, which is safer if your idea doesn't get off the ground. If it does, increase gradually. Is there somewhere you could try it out? e.g. a craft fair, a Christmas fair, a table top event, if any of those are appropriate. Try ebay, but check out the competition, especially their prices, first.

- advertise yourself; have an online presence, either free services or your own website.

- have an accountant (they're not expensive if your accounts are fairly simple), but ensure you keep clear accounts (simply date & itemise any expenditure & show all income) so it's easy to write up.

Some free info on the Federation of Small Businesses' website: https://www.fsb.org.uk/skills-hub.html

A lot of good advice on this website too, e.g. about Self Assessment tax returns (but have a look around the rest of the site too): https://www.simplybusiness.co.uk/knowledge/articles/2021/09/self-assessment-tax-return-guide-for-self-employed/

When you need to register as a sole trader: https://www.gov.uk/set-up-sole-trader

Hope some of that may help, & good luck.