Question about starting a Ltd Company and Benefits

willowd
willowd Community member Posts: 1 Listener
edited January 2022 in Benefits and income
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

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