In dire trouble

Budredz

I maybe clutching at straws posting here and never have asked for help ever publicly,  but you never know. desperate times.
My story,
 I started a ltd company 2 weeks before pandemic so had to close the doors straight away with no support and had to get bounce back loans just to pay the premises rent etc, so went on universal credit and was getting financial support but only just, business is now open and nothing but 5 star reviews but due to loan repayments and other business debts run up through the pandemic we only break even, universal credit have now said they are going to put in place i am earning the minimum floor of £1200 which i don't so basically now i get just over £200 a month, my rent is 600 etc so i thought i will go and get a job for now, however more bad luck, i hurt my back and a MRI has highlighted i have multiple degenerative changes in my discs plus nerve compression, basically i cannot sit down for more than an hour and I'm in constant pain so that has put paid to my financial escape of alternative employment, i have no money left after i borrowed from family to pay rent thinking it would be short term, i don't know where to turn or what to do, any advice or direction would be massively appreciated, I've always been in employment so this is alien to me, oh and to add to the mix i have cptsd which i have lived with and manged for over 4 decades but I'm quite scared now that I'm losing the control on that. i have no spare finance as i cashed in what i have to start the business which can be a success but marketing costs and we have no spare cash to push that enough.

Mark  

tacpot12

I think you need advice about whether your business can be saved. I would suggest you talk to a licensed insolvency practioner such as Real Business Rescue | Free Company Debt Advice | Insolvency Solutions

They should be able to help you figure out if it is viable to keep the business operating. You should look at the possiblity of selling your business. I would check if any of your employees might be interested in buying it. With your back problem, you could probably commit enough time to helping a new owner learn what makes the business successful. 

If the insolvency practitioner advises closing the business, they will be able to give you some evidence to support this and if you share this with the DWP you should have less difficulty continuing to claim Universal Credit.

You can ask for a work capability assessment as part of your UC claim, and they will look at whether your back problems are enough qualify you for reduced work search requirements or no work search requirements. You might receive additional amounts of UC if they accept that you have a limited capability for work and work related activities (LCWRA). You can by paid for work you do to hand the business over to a new owner while claiming Universal Credit, but you need to let the DWP know what you are being paid.  

Budredz

Hi
Thanks for replying, i have reached out to the government  new enterprise allowance advisor that helped us start up the business and been advised to stick with the business, in there own words 'the business customer expansion will be slower than expected due to the unique nature of the service you deliver but unfortunately you have been extremely unlucky with timings of the pandemic and cost of living crises however the business has a strong future.

Employees, there are only 2 of us, the remaining help is from family and friends for no financial reward which is amazing.

I am a director of my business as it is a ltd company but UC treat me as gainfully employed, but i cannot work now due to my back injury, i would not be in this financial mess if covid had not hit and the government had at least helped, i had to use all my savings to keep the business aloft during covid because we had already heavily invested in building materials so walking away was not an option, plus loans none of which was pre budgeted in the business plan, the business currently does not really have a worth and my business partner is not in the same position as me so selling would be futile.

putting the business aside, on a personal level i have never not worked and need expert advice on my situation whether i can get financial support in what is my darkest time in life.   

tifo

It's common with a lot of businesses, covid, now recession, inflation etc. No help from anyone.