ESA contribution based support group plus pension can I work part time ?

carrie08
carrie08 Online Community Member Posts: 4 Listener
in Employment and Support Allowance (ESA)
I’m currently receiving contribution based ESA support group and also £85 a week personal pension. I have been given the chance to work an admin job a few  days a month self employed. Is this allowed and how much can I earn if it is ? I don’t want to loose my ESA as I have fibromyalgia plus a few other illness and have another 8 years until my state pension .I could manage this on my good days so wondering if it’s viable? 

Thanks for all help in advance. 

Comments

  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    You must work less than 16 hours/week and earn less than £152/week. You must inform DWP.
    https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheet
  • carrie08
    carrie08 Online Community Member Posts: 4 Listener
    Hi Calcotti thank you for your quick reply - is the £152 including my pension amount a week or can I earn that on top - I doubt it’s going to be much a week I will earn anyway but would like to make sure I’m correct informing DWP. 
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited February 2023
    carrie08 said:
    Hi Calcotti thank you for your quick reply - is the £152 including my pension amount a week or can I earn that on top - I doubt it’s going to be much a week I will earn anyway but would like to make sure I’m correct informing DWP. 
    The pension has nothing to do with it. £152 is an earnings limit and pension is not earnings.
  • carrie08
    carrie08 Online Community Member Posts: 4 Listener
    Can you please advise is my understanding of this correct for working out the income - 

    ESA  is not taxed new rate April 129.50 pw £6734

    Pension is not taxed 85 pw £4420

    Earnings of up to 152 week ie £7904 pa will be taxed  for anything over allowance of 12570 pa ie £6488 will be liable
    for tax plus NI? 

    Are my figures correct ? 

    Thanks for confirming it’s bit confusing with the various amounts.


  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited February 2023
    Contribution based ESA, pension and earnings are all taxable income. If your total income is over £12570/annum then you will have to pay tax on the excess.

    ESA and pension are not subject to NI.

    ESA £6,734 plus pension £4,420 totals £11,154. That leaves £1,416 of your tax free allowance. Any earnings over that figure will result in a tax liability. If you earn £7,904 there would indeed be tax due on £6,488 (so tax of £1,297.60).

    No NI will be payable if you are earning less than £167/week.
  • carrie08
    carrie08 Online Community Member Posts: 4 Listener
    Brilliant thanks for
    confirming it’s put my mind at rest - thank you for all your help. 

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