Self-employment as a carer while on UC and partner in receipt of NS-ESA?

Benefits, finances and funding
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1

My partner and I have just migrated from old-style ESA (partner in the Support group), PIP and CA to UC + CA + New Style ESA + PIP and I’m trying to work out the implications of me possibly becoming self-employed. (Partner gets PIP + NS-ESA, I get CA, joint claim for UC.)

A friend has suggested that I could monetise one of my hobbies via an online marketplace and after doing a bit of research and speaking to other sellers, it looks like I could possibly earn between £100 and £500 a month which would mean registering with HMRC. I’d be selling digital files for 3D printing, and some of the income would be ‘passive’ in that once the files are available for sale, I wouldn’t be putting any more work into them. Income would be paid via PayPal or bank transfer, paid in Euros (the marketplace is based in the EU). The marketplace provides EU VAT returns which list earnings to-date. I estimate no more than 16 hours of work a week, probably less. Minimal expenses as well, just energy costs. The software is either free or I’ve already paid for it and my PC.

What I’m trying to figure out is how that money would affect our UC, my partner’s NS-ESA and my CA and - for want of a better term - how much hassle it’s going to be to report everything.

  1. I’m aware of the earnings limit for CA but it’s my understanding that the DWP get their reported earnings figure from HMRC every month and that the weekly income is pro rata’d from that. But - and I’ll add here that I know next to nothing about being self-employed - I would only be filing income figures with HMRC once a year so how would I report income for CA? And, if my pro rata’d weekly income is less than the earnings limit do I even need to let the CA team know?

  2. Our UC claim doesn’t have a work allowance, so does that mean every £1 earned would have 55p deducted or will I be given a work allowance if I inform UC that I’m becoming self-employed?

  3. Am I correct in thinking that my partner’s NS-ESA won’t be affected by my potential earnings?

  4. Any other implications or issues I haven’t thought of?

2

Start by finding out more about self employment. We ran a business for years. Lots of helpful information on HMRC’s website, especially the deductions you can claim for heat, light, etc which make a difference to your final profit. After a spot check they wrote to me complimenting me on my record keeping, all on paper in those days. Keep your accounts monthly, then add the second month to the first so you know exactly what your figures are. Then the end of year figures for HMRC are quick and easy.
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