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Thread: Permitted work help

  1. #1
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    Exclamation Permitted work help

    I claim ESA (income related) and am in the Work related activity group (have been for 1 1/2 years)- I attend all my appts and training/courses etc. My advisor has been suggesting doing permitted work, so I have found a job and start in 10 days. My contract is for 4 hours a week, at £7 and hour. so way under the permitted work rules (under 16 hours and up to £101/£104 (?).

    Today I have received a phone call saying I will have to attend training, for 3 days next week, in total this equals 28 hours. I thought this was unpaid so agreed to the training. well it turns out this is actually paid, at £7 an hour.

    so where do I stand with ESA? I understand I would be working over the permitted 16 hours, but this is for training and only the 1st week? the other weeks I would only be working 4 hours.

    I dont want to loose my ESA claim as after the 1st week I will only be earning £28 per week!! and obviously I do not want to loose this job. I am so worried, can anyone help?

  2. #2
    Senior Member nukecad's Avatar
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    Have you already put in your permitted work application form, PW1?
    If not then you need to request this form from the Jobcentre, fill it in and send it back.

    You can see an example here example PW1
    Note that this is only for information. You cant print it off and fill it in, you have to get the form from the Jobcentre.

    If you look at part 2 of the form you will see there is a box for How much will you earn and then one for How many hours will you work each week
    I would put in these the pay and hours for the 4 hours you will be working normally.

    The next box is If your hours will vary, please tell us as much as you can about your working pattern
    In here I would put that for the first week only you will be doing 28 hours training.
    Emphasise that it will only be for the one week.

    You will loose some or probably all of your ESA for that week, but it should only be for that week and you will have the 3 days wages.
    Be aware though that they can be very awkward about things like this so don't be surprised if you have a bit of a struggle getting your ESA payments reinstated.

    Another option might be to ask the employer if you can split the training eg. 2 days (16 hours) one week and 1 day the next week. (Presumably you will be paying tax / NI which would reduce the 16 hours to less than £104).
    Or maybe 1-1/2 days each week?
    That way you would stay within the allowed hours and pay for permitted work.

    I would ring your advisor to talk about this, it must be a situation that comes up often.

    If you have already put in a PW1 then presumably you only told them about the 4 hour weeks, in this case I would again ring your advisor about the training.

    BTW, you are aware that as you are on income related ESA you can only do permitted work for 52 weeks and then have to do none for the next 52 weeks?
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  3. #3
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    Quote Originally Posted by nukecad View Post
    (Presumably you will be paying tax / NI which would reduce the 16 hours to less than £104).
    Income tax is calculated on your annual income, so even if some was paid for that week, it'd be refunded later. NI is likely to be the same. There would be a total income for the year of £1624 based on £7 an hour. 1 week of 28 hours and 51 weeks of 4 hours. This is well below the £10600 personal allowance.

    If paid monthly, it'd average out so that no income tax would be due that month. would have to earn 10600/12. so as long as its below £833.33 then no tax. If paid weekly some tax may be paid, and then refunded.
    Last edited by carl30; 27-06-15 at 10:06.

  4. #4
    Senior Member nukecad's Avatar
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    For permitted work it doesn't matter if tax is later refunded.

    They are only interested in how much you will be taking home each week or month.

    The PW1 form merely states
    How much will you earn?
    Tick the box that applies.

    This is the amount after income
    tax and National Insurance (NI)
    contributions are taken off.
    Yes though I wasn't thinking it through properly.
    If hb7mao will not be paying tax then @ £7/hr he would only be able to do 14-1/2 hrs a week to stay below the £104 limit.
    (He would not be liable to pay NI at this level of pay).
    Last edited by nukecad; 27-06-15 at 10:27.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

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