Setting up a business while on esa

muddystu

Can I start a ltd business but not make any money would it affect my esa I'm on support group, just want to register the business so I can get some funding for a training course, the job center won't help me with the funding 

tacpot12

Starting a limited company places you under obligations to do things like file accounts (in iXBRL format from 2025), make annual returns to Companies house, complete Corporation tax returns, etc. The course has to be relevant and necessary to the business, otherwise it's not tax-deductable. 

While claiming ESA you can only earn £183.50 per week after tax and National Insurance. You will also need to pay a Payroll company to do your payroll so that you pay tax and NI correctly. 

If it is income-based ESA, you might find you are better or worse off if you move to Universal Credit (UC). I would recommend using a benefits calculator to check whether you will be worse off if you claim UC as it would be as well to know this before you  start the company.  

  

born_again

muddystu said:

Can I start a ltd business but not make any money would it affect my esa I'm on support group, just want to register the business so I can get some funding for a training course, the job center won't help me with the funding 

What sort of course?

As seems extreme to set up a ltd co with all the costs, just for some funding.

muddystu

It's for a skills bootcamp course you either need a employer that's willing to take you on afterwards or a utr