ESA and permitted work

[Bev250264]

Morning. I need some advice.

 

My husband owns his own business and he is sole owner and director. I am on ESA Support Group and have been for over 20 years.

 

Up until now he’s submitted his own accounts but we now have an accountant as he is a limited company and the accountant has suggested that he put me down as earning £130 a week and take that off my husband’s wages. He says it won’t affect my ESA as it is within permitted work allowances but will allow us to use up my unused tax allowance. (My OH only draws about £18k).

 

I want to speak to DWP about it but I’m worried it will trigger a review. Having had to go through a PIP appeal before - which I won - I don’t want to rock the boat. If and when the business can afford it I will stop claiming ESA completely but right now we rely on it and we’d really struggle if I lost it.

 

if I can take the £130 a week and still get my ESA like the accountant says then I’ll do it as he obviously thinks it’s the right thing to do. I want to make it clear We wouldn’t be earning any additional money, he’s just talking about redistributing what we already get.

 

Any ideas if this is allowed? 

[honeybee13]

Hi.

 

Hopefully someone like Uncle Bulgaria will come along and advise you on this because I'm not sure if working for a spouse comes under the rules. While you're waiting for him to appear, you might like to have a read of the turn2us guide with more details.

 

https://www.turn2us.org.uk/Benefit-guides/Employment-and-Support-Allowance-Permitted-Work/What-is-permitted-work-Employment-and-Support-All

 

In case it's relevant, could you tell us whether you're on income-based or contribution-based ESA please?

 

HB

[Bev250264]

Hi Honeybee13. I’m on Contribution-based. 

Edited March 22, 2021 by Bev250264

[unclebulgaria67]

Here is the information you need

 

https://www.gov.uk/employment-support-allowance/working-while-you-claim

 

 

[Bev250264]

Hi UncleBulgaria67 thanks for the reply.

 

I’ve read that through but it’s the fact that it’s technically working for my husband that’s the issue as I’m not sure this is allowed. 

I may just leave things well alone for now until we’re in a position for me to come off ESA altogether.

I’ll tell the accountant to leave things alone.

 

As I said, I won’t be working, it’s more something he wants to do for tax purposes which is why I don’t want to rock the boat as I won’t be any better off. 

 

[unclebulgaria67]

 

The issue would be, that when your ESA entitlement was due for assessment, you would be asked about the work you have been doing and if the employment was really just a way for your husband to legally minimise tax being paid, then it is question whether it was worthwhile. 

 

If you genuinely worked for your husbands business and this was found beneficial to your health/wellbeing, then it would be a positive step to take.

[Bev250264]

Would I be allowed to work for him though? I didn’t think you could work for relatives as permitted work? 

[unclebulgaria67]

What information have you found that says you cannot work for a partner or other relative ?  I could not find any information stating this.

 

Why not call the ESA helpline and ask about this ?