If we become concerned about you or anyone else while using one of our services, we will act in line with our safeguarding policy and procedures. This may involve sharing this information with relevant authorities to ensure we comply with our policies and legal obligations.
Find out how to let us know if you're concerned about another member's safety.
Find out how to let us know if you're concerned about another member's safety.
Question about starting a Ltd Company and Benefits
Options
willowd
Community member Posts: 1 Listener
Hello there, I have joined here to ask a question on behalf of my friend who is very talented and would like to make an income from her art and music.
She has ASD APD dyslexia dyspraxia sensory disorder ADD fibromyalgia and FND and is in her early 50s. She has a son to whom she is a single parent, he is 20 and is in university; her son has ASD APD and hyper mobility.
My friend receives the ESA (the one where she doesn't need to attend groups for work), PIP and housing benefit. Her son receives PIP.
My friend has potential to make a lot of money because she is so talented but obviously when starting out self employed cash flow is not always consistent and her big fear is that it will impact and stop her benefits payments before she is ready.
We need advice about whether being listed as a director of a company limited by guarantee (eg social enterprise) would impact her benefits even if she were not drawing from the company yet?
What would happen if her son and I formed a Ltd company to receive her income but no drawings were made until enough had amassed to give her the security to leave benefits, is that legit?
I called the Scope hotline and they gave me a number for a charity in her local area to call but the number didn't work.
My friend also wanted me to find out if she can get a PA to help with day to day personal admin like bills?
She also wanted to know if her son should be on the tenancy now he is 20 and no longer a child?
Would his PIP be affected by starting a business as a student?
I would be very grateful for any experience, advice, anything from folks who know about setting up either or both Ltd companies and / or social enterprises while on benefits?
Thank you so much
She has ASD APD dyslexia dyspraxia sensory disorder ADD fibromyalgia and FND and is in her early 50s. She has a son to whom she is a single parent, he is 20 and is in university; her son has ASD APD and hyper mobility.
My friend receives the ESA (the one where she doesn't need to attend groups for work), PIP and housing benefit. Her son receives PIP.
My friend has potential to make a lot of money because she is so talented but obviously when starting out self employed cash flow is not always consistent and her big fear is that it will impact and stop her benefits payments before she is ready.
We need advice about whether being listed as a director of a company limited by guarantee (eg social enterprise) would impact her benefits even if she were not drawing from the company yet?
What would happen if her son and I formed a Ltd company to receive her income but no drawings were made until enough had amassed to give her the security to leave benefits, is that legit?
I called the Scope hotline and they gave me a number for a charity in her local area to call but the number didn't work.
My friend also wanted me to find out if she can get a PA to help with day to day personal admin like bills?
She also wanted to know if her son should be on the tenancy now he is 20 and no longer a child?
Would his PIP be affected by starting a business as a student?
I would be very grateful for any experience, advice, anything from folks who know about setting up either or both Ltd companies and / or social enterprises while on benefits?
Thank you so much
Tagged:
Comments
-
All I do know for certain is that PIP won't be affected, is the son not getting a student loan?
@willowd welcome to scope
2024 The year of the general election...the time for change is coming 💡 -
@willowd - & welcome to the community. About a limited by guarantee company from the government's website, which can be seen here: https://www.gov.uk/limited-company-formation
Limited by guarantee companies are usually ‘not for profit’. This means the company:
- is legally separate from the people who run it
- has separate finances from your personal ones
- has guarantors and a ‘guaranteed amount’
- invests profits it makes back into the company
This doesn't sound like the business model you're proposing, where you feel your friend hopes to make & keep any profit. I would imagine she would rather set up as a sole trader. Seeking the advice of an accountant may explain her options.I don't think yourself & son setting up an ordinary Limited company to keep her profits will work either, as this could be seen as deprivation of capital (or income) in order to receive ESA. Please see: https://www.gardencourtchambers.co.uk/news/social-welfare-updates/the-deprivation-of-capital-rule-in-welfare-benefitsYour friend would need to contact the DWP if starting any work. There's an explanation here, as well as a link to the PW1 form that would need to be completed: https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheetHer ESA would continue if she worked less than 16 hours a week, or earned less than £143 a week. Please see: https://www.gov.uk/employment-support-allowance/working-while-you-claimAs mentioned above, her PIP would continue, as it's not means tested. PIP would however be considered income as far as tax purposes go.I hope this has answered some of your questions.
Brightness
Categories
- All Categories
- 13.1K Start here and say hello!
- 6.7K Coffee lounge
- 70 Games lounge
- 386 Cost of living
- 4.3K Disability rights and campaigning
- 1.9K Research and opportunities
- 199 Community updates
- 9.3K Talk about your situation
- 2.1K Children, parents, and families
- 1.6K Work and employment
- 771 Education
- 1.7K Housing and independent living
- 1.4K Aids, adaptations, and equipment
- 590 Dating, sex, and relationships
- 363 Exercise and accessible facilities
- 739 Transport and travel
- 31.8K Talk about money
- 4.4K Benefits and financial support
- 5.2K Employment and Support Allowance (ESA)
- 17.2K PIP, DLA, and AA
- 5K Universal Credit (UC)
- 6.2K Talk about your impairment
- 1.8K Cerebral palsy
- 871 Chronic pain and pain management
- 180 Physical and neurological impairments
- 1.1K Autism and neurodiversity
- 1.2K Mental health and wellbeing
- 317 Sensory impairments
- 819 Rare, invisible, and undiagnosed conditions
Complete our feedback form and tell us how we can make the community better.
Do you need advice on your energy costs?
Scope’s Disability Energy Support service is open to any disabled household in England or Wales in which one or more disabled people live. You can get free advice from an expert adviser on managing energy debt, switching tariffs, contacting your supplier and more. Find out more information by visiting our
Disability Energy Support webpage.