ESA and starting new business

iwillgetthereintheend

I need some advice.........

I am currently recieving ESA, council tax benefit and support for mortgage interest payments to assist with my mortgage.......

I am currently unable to work for the short-term on look to return to work in 3-6 months........

In the meantime and where it gets confusing is:

I incorporated a company a few weeks back in order for me to have work when i am better in 3-6 months, in the meantime i will not have any input into the company and a friend will be over-seeing it (its only one day per fortnight so not very much) until im fit to work........

due to the situation above, would you say im still entitled to ESA and SMI payments until i return to work? as i wil have no income as i will not be drawing a salary while im unwell nor will the company be making any money........where do i stand?.....please help.....

allen35

have you informed the JCP/DWP that you have incorporated/started a business.

It sounds as though you are now self employed and it may be a good idea to ask a disability /personal adviser at the jobcentre to ask what you may be entitled to.

You can claim working tax credits if starting a business and working 16 hours due to your disability as long as you expect to be paid for hours worked.

Being self employed you can still apply for council tax benefit if your self employed income is low.

iwillgetthereintheend

No i havent informed them yet. I am still too sick to start work yet. I will not be taking a wage nor will the company be making a profit.....

dseventy

iwillgetthereintheend wrote: »

No i havent informed them yet. I am still too sick to start work yet. I will not be taking a wage nor will the company be making a profit.....

Your missing the point. Its not about the company, taking a wage or making a profit.

Its about you.

ESA is for " if you have an illness or disability that severely affects your ability to work".

You are not working, but you have incorporated a business and all the paperwork/effort that involves, have a friend running it and planning for the future.

You need to inform ESA of this.

D70

iwillgetthereintheend

yes, i have had a friend do this on my behalf and will do so till im fit to start in 3-6 months time.........with ESA i am still unfit to work due to illness/disability.......i wont have no money to live on or assist with my housing costs if they stop my money, where do i stand? thats where i am confused and stuck between a rock and a hard place......

iwillgetthereintheend

Can anyone help me with some advice with this original thread questions? many thanks.........

iwillgetthereintheend

Can anyone help me with some advice with this original thread questions? many thanks.........

bigbill

I would say your not working so you have nothing to worry about.

But just to be safe and for the future when your ready to work, ask at the jobcentre about permitted work while on ESA and going self employed and about the test trading period for 6 months.

Rememebr working tax credits will be available if the ESA stops and the £40 in work credit ect.

iwillgetthereintheend

thanks so much bill for the thumbs up on that! whats the £40 work credit mean?

viktory

Why not just ask at the JCP? I suspect it is because you won't like the answer you might get. Better to get advice from someone who knows the rules and regs rather than get excited by a response from someone on an Internet forum who *thinks* you'll be OK.

iwillgetthereintheend

this forum is to get opinions/advice. Im asking questions like everyonelse on here. nothing to do with "not liking the answer". We could all respond to everyone in this forum by just saying "call the JCP".....But what would be the point of this forum and 1000's of others????!! Thanks for your input anyway