PCG, passported HB/CTR and self-employment earnings

I was hoping I could get clarification on Pension Credit Guarantee (PCG), passported HB/CTR and the interaction with self-employment earnings and what is happening in practise.

I advise entertainers. Entertainment work is unpredictable and usually carried out on a self-employment basis. Many of the people I advise carry on working on an SE basis past pension age + continue to claim pension credit.

I have a client who is approaching state retirement pension age and pension credit age does some small acting work when she can get it, but mainly small craft/design jobs on a reasonably regular basis - for example, a job a month decorating, dress making, etc.  She intends to continue to do this. For the past couple of years she has earned around 800-1500 net profit p.a.

Her state pension will be around 125 per week. If she continues to earn the same (say top end £1500) she could still be entitled to pension credit with the earnings being taken into account. 

My question: is it correct that if she gets even a few pounds of PCG, she is passported to full HB/CTR ?  Does she then have an obligation to report her earnings to HB/CTR if she remains under the PCG threshold?

I am concerned that given her earnings may fluctuate, she needs to be clear on how it works in order to avoid overpayment/claim suspension-re-assessment (v stressful obviously).  I am trying to formulate the best advice for her - should I advise that she notifies HB when her earnings go above the PC threshold? As in, when the net profit from her earnings would exceed the difference between her DRP and maximum PCG amount plus the £5 disregard, calculated on an annual basis?

I would be interested to hear what other people think.

I think you’ve hit the nail on the head really. Make sure she remains entitled to an amount of PCGC and her passported entitlements to HB/CTS are untroubled. Of course, this could changes in the future, if when UC roll out complete and HB abolished and HB element for PC introduced.

Does she have any pension savings?  If so, then don’t forget that, even if nothing is taken from the pension, it will generate a notional income for Pension Credit purposes.

No savings whatsoever.

Paul - many thanks for the heads up re. PC + UC. I had put that to the back of my mind…