Login FormClose

Free, fortnightly PIP, ESA and UC Updates

Our fortnightly bulletin, with over 80,000 subscribers, is the UK's leading source of benefits news. Find out what's changing, how it affects you and how to prepare. Our mailing list is securely managed by icontact in the US.
Welcome, Guest
Username: Password:
Remember me
Members
  • Page:
  • 1
  • 2

TOPIC: Classed as Working or not?

Classed as Working or not? 7 years 8 months ago #66686

I was wondering, if a person claiming IB or ESA were to lend money (invest) to another to develop a business, and subsequently received repayment with profit. Would that be classed by the DWP as working?
Also another scenario:- If a person were to sell items made whilst persuing a hobby (only 1 or 2 per year), could that also be classed as working?
Regards
Peter

Please Log in or Create an account to join the conversation.

Re:Classed as Working or not? 7 years 8 months ago #66690

Egon Peter Hopkinson wrote:

I was wondering, if a person claiming IB or ESA were to lend money (invest) to another to develop a business, and subsequently received repayment with profit. Would that be classed by the DWP as working?
Also another scenario:- If a person were to sell items made whilst persuing a hobby (only 1 or 2 per year), could that also be classed as working?
Regards
Peter

The big issue with these types of questions is that it is often only a DWP Decision Maker, who can actually declare whether a particular situation fits with the regulations or not.

Remunerative work is defined as work that is done in return for payment or in the expectation of payment.

So in the first example I don't think this would be classed as work as you would not particpating in the business, however, any profit realised would be classed as income, which might affect your benefits.

The second example I think is less clear cut, the issue being that goods are produced and then sold, presumably at a profit. Really it will boil down to the time invested in the activity and what income is derived.

If in doubt, contact your local DWP office.

Gordon

Please Log in or Create an account to join the conversation.

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

Re:Classed as Working or not? 7 years 8 months ago #66694

Thanks for the answers Gordon, more or less what I thought, just wondered if there were any guidelines or known precedents.
Regards
Peter

Please Log in or Create an account to join the conversation.

Re:Classed as Working or not? 7 years 8 months ago #66697

Hi Peter

If you contact the DWP for advice it would probably be safest to do so in writing as they are not unknown to say one thing but do another. See the thread below.

www.benefitsandwork.co.uk/forum?func=view&catid=10&id=28946

Regards

Derek

Please Log in or Create an account to join the conversation.

Re:Classed as Working or not? 7 years 8 months ago #66700

  • originaldave

Please Log in or Create an account to join the conversation.

Last edit: by Gordon.

Re:Classed as Working or not? 7 years 8 months ago #66701

Thanks for that link Dereck, I remember reading the thread now you mention it, wonder how it ended. So if you simply sell an asset it's value might affect any means tested benefits, that's all. But if you planned to sell something before you made it (or painted it as in that case) then you were obviously working. Repetition would prove the case.
I agree about getting advice from DWP in writing, but you have then drawn attention to yourself. Do you or don,t you, a catch 22 situation, needs carefull thought.
Regards
Peter

Please Log in or Create an account to join the conversation.

  • Page:
  • 1
  • 2
Moderators: GordonSarah MartinGaryBIS