I own my own business. Can I earn more than the £143 a week to cover business costs and income?

KatyMc

I am new here, but am looking for some help around accounts and permitted work. 

chiarieds

Hi @KatyMc - & welcome to the community. I presume your query relates to ESA. If so, you can earn up to £143 per week, & you must work for less than 16 hours a week. You should also inform the DWP if starting work & there's a form you can use here: https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheet

janer1967

Hi and welcome to the community glad to have you here 

Ross_Alumni

Hello @KatyMc

Welcome to the community, it's nice to see you join and I hope you are well. This is a very supportive community so I'm sure that you will enjoy taking part, and if you have any questions then don't hesitate to ask.

Is there anything in particular regarding accounts and permitted work that you are struggling with?

KatyMc

Thank you everyone. Yes it is in relation to ESA and permitted work. I run my own business and come under the 16 hours a week. My question is around income. At present the business does not bring in more than the permitted amount of money, however that means that most of the money goes on business costs and not my drawable income. Can we earn more than the £143 a week to cover business costs and our income or are we limited to the above amount meaning my take home pay will be minimal. I also need to build up money in the business for some significant overheads of paying others at times. I hope you are able to help. Many thanks

chiarieds

If, which I presume, this is a new business, then this will be taken into account as to the assessment period used, & may not start until you have actual earnings as a self employed person. The assessment periods would then be extended until a yearly assessment is possible, then it could be worked out more accurately what on average your weekly earnings may be. A shorter period, say of some months, could also be used if this could give an accurate reflection of your earnings once your business becomes more established. Please see:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/810648/admv5.pdf    & scroll down to V5069 - V5072

V5117 - 8 shows how earnings are calculated.

Then scroll down to V5190 to see what are considered 'Business expenses.' Personal drawings wouldn't be considered such an expense.

V5206 details what such expenses might be. Some expenses may be both for private & business use, e.g use of phone, or car, so you would need to work out what would be considered an appropriate proportional amount for these.

If VAT is involved, see V5160.

Depending on the nature of your business, there may be other applicable sections in this chapter.

You mention 'we' so if you have an partner, please see: V5407 - 8

I would recommend employing an accountant; if you keep accurate records of your profit & loss, then the charges are not too bad.

KatyMc

Thank you. The question including the word 'we', was a generic 'we' as in people in recipt of ESA on permitted work. I am a sole trader, but contract work out to others when required.

calcotti

Earnings are the difference between business income and business expenditure, not the income itself.

KatyMc

Thank you.

calcotti

Bear in mind also that, depending on your circumstances, you might be eligible for UC and this has no permitted work limits. 

KatyMc

Thank you will bear this in mind. Not inclinde to mess about with my benefits at the minute, just get my head around them.