ESA and being a Company Director

develash84

I hope someone can help with this, I have looked online and can't find the answer I am seeking. Also tried ringing the benefits line to be cut off...twice.
Basically I am on ESA and PIP for various illnesses which I won't go into here but a friend of mine wants to start a company and wanted to know if I wanted to be on paper as Company Director and Secretary with shares in the company which would mean it being listed at Companies House.

I wouldn't be doing any work, or getting paid anything so I am wondering if or how this would effect my benefits?

NedS

develash84 said:

I hope someone can help with this, I have looked online and can't find the answer I am seeking. Also tried ringing the benefits line to be cut off...twice.
Basically I am on ESA and PIP for various illnesses which I won't go into here but a friend of mine wants to start a company and wanted to know if I wanted to be on paper as Company Director and Secretary with shares in the company which would mean it being listed at Companies House.

I wouldn't be doing any work, or getting paid anything so I am wondering if or how this would effect my benefits?

If you aren't doing any work for the company or being paid by the company, what would be the purpose of you being a director in the company? Does it sound like a sensible thing for you to do? Do you fully understand the responsibilities of being a company director (and company secretary)? Are you capable of meeting these requirements?

calcotti

That sounds to me like making your life unnecessarily complicated. There seems to be no benefit to you but may result in questions being asked. Directors and Secretaries do, as Ned says, have statutory duties.

develash84

Ok so the long and short of it is, it wouldn't be worth the hassle to me.

NedS

develash84 said:

Ok so the long and short of it is, it wouldn't be worth the hassle to me.

Correct

develash84

What if I was to do work for them but not receive any pay?
So for example I would be a company director / person of significant control / secretary

The businesses have only started around late last year so there is no profit to be made from the companies currently. What money goes in goes back out very quickly on stock etc

NedS

develash84 said:

What if I was to do work for them but not receive any pay?
So for example I would be a company director / person of significant control / secretary

The businesses have only started around late last year so there is no profit to be made from the companies currently. What money goes in goes back out very quickly on stock etc

I'm not quite sure what you are asking. Are you asking will this affect your entitlement to ESA? The answer is yes, it very well could.

Not being paid is not relevant. The rules on ESA permit less than 16h of work. If DWP deem the role will take you more than 16h per week, it does not matter how much you are being paid for the work. I recently came across a case of a self employed person (that is how DWP treats company directors) who had his ESA claim closed as he was deemed to be working more than 16h allowed under permitted work, even though he didn't have the income concomitant with that work. Either way, you should discuss it with your Work Coach who will be able to advise you.