View Full Version : Are expenses included in permitted work ?

08-04-12, 15:25
High I am a bit worried as I have had a letter through the door saying I have earned more than £20 per week on the permitted work scheme. I had thought it was after expenses as I have started my own self employed business. Needless to say I have not earned anything yet. How do they see it and what are my rights ? I sent them my accounts to show what I have done as they asked. They have told me twice I am earning more than the lower permitted rate. Luckily the money coming into my business did not exceed the higher permitted work threshold any way . I understand everything on permitted work but the expenses part I may have not got right. I have general cost of sales expenses like pots , plants , greenhouse etc. These are allowable expenses to the HMRC (tax people).

Help very worried ?! Might need to go onto working tax credit. Can just about manage 16 hours work at least I hope so.

12-04-12, 09:03
I was advised to average all my income of the year when I was on lower rate. But I am now going onto the higher rate and self employed. You can claim everything against tax but my ESA adviser and I are still trying to find out what you can and can't claim when under the benefit rules...It isn't everything...
It may be running costs but not set up costs...but we're not sure yet. Hope to find out soon.
If you have found out already then please let me know.
Also if you have been under the lower rate self employment you can claim back the last 6 years of losses against any profit ...this is for tax.

30-05-12, 16:11
I never realised you could start your own business and still claim esa.Where is the info as i would be interested in that.Thanks

31-05-12, 10:48
I know someone with a very similar situation, the fact that no rules being broken was impossible for the clerks to understand, they just saw the 'takings' as earnings and ruled that he was getting more than allowed.
The way around this was to detail accounts showing the business as an entity and 'paying' himself a small amount from the bottom line ie. keeping any profit/earnings below the permitted amount.
I should add that it was his adviser at the job-center who helped him sort it out.