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ESA (IR) Self Employed

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5 years 3 months ago #242698 by Headcase
ESA (IR) Self Employed was created by Headcase
Evening all,

Asking for advice (trouble??) on behalf of our accountant..
After being granted ESA IR Support Group (and Full Pip) a few years ago, after being totally refused for over two years because HMRC - DWP Computer 'glitch'.... Who'dve thought!
Hence don't want to re poke a hornet's nest.

I'm after a bit of advice as to our conundrum...

I am/was self employed, alongside two other partners, who continue to run the business. My situation is that as I live at the business premises and occasionally answer the phone etc, but don't do anything like enough to get involved in 'permitted work' etc.
After several loss making years , this year looks like showing a modest profit, which had thrown up a couple of questions I need advice on.

The accountant wants to allocate me approx £1000 of the profit, to keep things looking 'safe' business wise. However it throws up a couple of potential queries...
1
If I take this profit, does mean I'm 'working?'
2
If I can , could he potentially allocate more of the profits to use up my tax allowances? and if so, how much is my Esa reduced?
I assume my Esa is 'taxable income' but pip is exempt?
As the accounts are for '18/'19 hence nearly a year behind , and it looks like being a one off 'readjustment' I really dont want to trigger any more complications, we only got it sorted originally because he threatened 'em with Ombudsman.

We're of the opinion of 'letting sleeping dogs lie'

Ps.
I don't claim housing benefit, even though I'm eligible,
I can't afford to heat the house , still paying off debts accrued when I couldn't work and couldn't access ESA (worked for 36 years full on, always thought the Welfare State would 'honour it's commitments,....we did!!!)

How naive!


TIA

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5 years 3 months ago #242700 by Gary
Replied by Gary on topic ESA (IR) Self Employed
Hi Joe90

We have answered your post in a previous one, as BIS pointed out your enquiry is outside the scope of this forum but I did give a couple of links to organisations that may be able to assist you: TaxAid and LITRG.

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems
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