Income from property while on ESA in the support group.

[SantasHelper]

I need advice on this please.

 

I am on ESA and in the support group as I am not able to work due to disability.

I am approaching retirement age and I am ready for the bungalow but my husband wants to work.

 

We live in a seaside place and 6 months ago we bought a house with holiday rental accommodation on the upper floors and I live on the ground floor with my husband which is absolutely separate. It seemed like the ideal thing to do because he is here most of the time and can help me whenever I need it.

 

My husband runs the holiday rentals as a business and this is his only income.

His accountant said that as the property is in both of our names we will both have to submit tax returns even though I am unable to do any of the work for the holiday rentals and never will. 

 

I don't even want any of the revenue, we view it as his business but his accountant views it as a business partnership just because the house is both of our names.

 

I told his accountant that all I want to do is live here with my husband and the only reason that the building is in joint names is because the ground floor is our home but he said it makes no difference.

 

His accountant wants us both to sign a document to allow him to act on our behalf and the document states something like "all partners must sign". 

 

I am worried about how the DWP will view this, I don't want them thinking that I am working when I'm not.

Does anyone have any advice please?

[honeybee13]

Hello and welcome to CAG.

 

Can you tell us if you're on income based or contribution based ESA please, in case it's relevant?

 

Best, HB

[SantasHelper]

Hello, thank you for your reply. Contribution based and this is my only income. I have a motability car as well. 

[dx100uk]

you are a couple this should have been declared from the get go by you.

have you told DWP you have moved and there has been a change in circumstances?

[unclebulgaria67]

agree with dx, that you will have to supply all information to ESA and they will decide how this affects your claim.

 

Failure to disclose this to ESA, could end up with action being taken, such as investigations into possible benefit fraud.

 

It appears that you may be ok as apparently Income is ignored for Contributions based ESA (except for pensions and some insurance payments).  Renting out one property is not treated as a business and the income is not earnings which might breach the permitted work rules.  BUT you should definitely inform ESA, so they can note any change in circumstances.
 

However, the income being received in rent may need to be included in a Tax return to HMRC, which your Accountant will advise you on.

[SantasHelper]

Thank you for your reply dx100uk.

 

Yes I informed DWP immediately that we had moved.

It is clear from the address name that the property includes holiday accommodation so they do know that.

 

What change of circumstance?

If you mean did I tell them I am running a business, no I didn't because I'm not.

My husband has been self employed all his working life and his earnings have never had any bearing on my claim for ESA. His earnings are not taken into account for my disability claim. Please excuse me if I've not quite understood what you mean. 

 

Thank you unclebulgaria, I will contact the DWP on Monday and let them decide on the situation. There's no fraud going on here. What ever they decide I will still be disabled and too ill to work, and I always will be.  

[SantasHelper]

After speaking to the DWP I will come back here and let you know the outcome so that you can help others who find themselves in the same situation and I will leave a donation for your advice which is much appreciated. Many thanks. 

[dx100uk]

i would expect your past forms would have included wanting information regarding your partners income. even if it is totally separate to you. all ESA claims are joint claims.

 

if you've done that to date each time then you should have no worries going forward.

 

14 minutes ago, SantasHelper said:

It is clear from the address name that the property includes holiday accommodation so they do know that.

 

just because it might say BnB or WHY ...that doesn't automatically mean the dwp would guess its a business with income.

 

my near neighbour who was on PIP and ESA moved with her partner in 2008 into an established BnB/AirBnB business address which likewise contained a separate family household where she lived.. in 2015 upon a move to UC, it discovered the business made some +£6k each year, they had to pay it back and still are.

[SantasHelper]

Thank you dx100uk.

No I have never been asked for my husbands details on any of my forms because my disability benefit is not income related. (It is taxable but the amount I receive is always much less than my personal tax allowance so there is never any tax to pay.)

 

I fill in a capability for work questionnaire which is directed to myself only, and that's it.

 Other benefits are income related such as council tax benefit but I don't claim those as I wouldn't qualify.

 

Thank you for letting me know about your neighbour, it must have come as a shock to them.

Your neighbour's circumstances might be slightly different to mine, they could be claiming some income related benefits on top, or he/she may not have built up enough National Insurance Contributions prior to making his/her claim for disability benefit.

 

In those circumstances they do take the household income into account as far as I'm aware, but they do have a habit of changing things. 

 

That is a good point you make about the address, I shouldn't have assumed anything. 

 

I will make sure the DWP fully understand the situation and if I need to do anything different I am sure they will tell me. Thank you for your input, it is much appreciated.

 

[dx100uk]

yes this is why HB asked that question earlier.

 

im not really sure if the accountant is right or not or if it makes any real difference, but you are doing this best thing by being honest and appear to be well clued up.