R
RoyalArran
- Original Poster
- #1
I run a small part time business under the Permitted Work scheme as I am in receipt of long term incapacity benefit due to a chronic illness. I am due to get my state pension in 2014 so not long to go now on IB; please could someone advise me on what strategy they would recommend in these circumstances. Details below.
The business is starting to take off and I want to build it up so that when I come off the benefit (either kicked off, at assessment next year or it ceases anyway when I get my pension paid in early 2014) it will have been developed enough to provide a small income.
However, the limit I can earn (on average, as it is self employment and not a steady income each week) is £20 per week. It is averaged out over 6 months and if it should exceed £20 per week average, just once, then I will be taken off the IB and won't be able to claim it.
SO.... in the course of building up the business, profits are increasing. Which is what we want, right? BUT.... if they increase too quickly, I will forfeit the IB and I need that until I get my state pension really in 2014. So I keep having to REDUCE the profit each month by increasing my expenditure. Just to keep the figures down. This obviously has an adverse effect on the funds the business needs to grow.
It is a catch 22 situation... my question is.... what would you advise me to do? Carry on building the business up and risk coming off the benefit (it only needs to exceed £20 pw income ONCE for that to happen)... or should I throw caution to the winds if I am building the business and 'go for it'?
It seems ridiculous to keep holding it back just because of the benefits payments, when what I want to do is grow it so that it will be on a good footing to take over from the benefits income when the time comes. As it is not regular income each week though, I don't want that to happen too early!
The business is an online business and one that I find I can do from home even though I cannot go out to work because of my chronic illness.
Any advice on what kind of approach/strategy I should be taking with this problem would be most welcome.
PS I have also declared it to the taxman, it is all legal and above board.
The business is starting to take off and I want to build it up so that when I come off the benefit (either kicked off, at assessment next year or it ceases anyway when I get my pension paid in early 2014) it will have been developed enough to provide a small income.
However, the limit I can earn (on average, as it is self employment and not a steady income each week) is £20 per week. It is averaged out over 6 months and if it should exceed £20 per week average, just once, then I will be taken off the IB and won't be able to claim it.
SO.... in the course of building up the business, profits are increasing. Which is what we want, right? BUT.... if they increase too quickly, I will forfeit the IB and I need that until I get my state pension really in 2014. So I keep having to REDUCE the profit each month by increasing my expenditure. Just to keep the figures down. This obviously has an adverse effect on the funds the business needs to grow.
It is a catch 22 situation... my question is.... what would you advise me to do? Carry on building the business up and risk coming off the benefit (it only needs to exceed £20 pw income ONCE for that to happen)... or should I throw caution to the winds if I am building the business and 'go for it'?
It seems ridiculous to keep holding it back just because of the benefits payments, when what I want to do is grow it so that it will be on a good footing to take over from the benefits income when the time comes. As it is not regular income each week though, I don't want that to happen too early!
The business is an online business and one that I find I can do from home even though I cannot go out to work because of my chronic illness.
Any advice on what kind of approach/strategy I should be taking with this problem would be most welcome.
PS I have also declared it to the taxman, it is all legal and above board.
