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Have to register a company for research; do I need to let DWP know?
CB1968
Forumite 7 Posts
Hi,
Both me and my wife are disabled, in receipt of PIP and benefits are our only source of income. I've had a couple of ideas for ventures that a university is interested in researching but they need me to register companies so they can gain funding for the research. The funds will never belong to me, I don't know if the ideas will ever be viable as a money making enterprise (and if they are, it's likely to be way down the line), and I won't be undertaking any work beyond the occasional decision about the way any research is done and meetings to discuss progress.
Will this have any implications for our benefits and do I need to let DWP know about registering the companies and the research being undertaken?
Thanks,
Chris
Both me and my wife are disabled, in receipt of PIP and benefits are our only source of income. I've had a couple of ideas for ventures that a university is interested in researching but they need me to register companies so they can gain funding for the research. The funds will never belong to me, I don't know if the ideas will ever be viable as a money making enterprise (and if they are, it's likely to be way down the line), and I won't be undertaking any work beyond the occasional decision about the way any research is done and meetings to discuss progress.
Will this have any implications for our benefits and do I need to let DWP know about registering the companies and the research being undertaken?
Thanks,
Chris
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Replies
this sounds like money laundering rather than researching
If there is any payment to be made to you for the intellectual property, it might be made as a capital payment to the company or as an income stream (perhaps on the basis of a licensing agreement). Until such payments commence, they won't affect any means-tested benefit income, but you do need to report that you are director of company. Any means-tested benefits will treat you as though you are self-employed, but if you are too disabled to work, then being self-employed shouldn't affect the amount of means-tested benefits you receive - I say "shouldn't" because this is an unusual situation (where someone is too ill to work, but still runs a business) - I can see why you are asking for advice. You should ask your local Citizens Advice to double-check any answers given here, including mine.
The company should be setup to be dormant - you might need an accountant to confirm that this can be done from the outset. While the company is dormant, you won't have to pay fees to submit annual returns to Companies House or Corporation Tax returns to HMRC. Once a payment is to be made to the company, you can open a bank account, but I would expect that you would need pay yourself the at the level of the minimum income floor, and that this will affect the amount of means-tested benefits you receive. This means that there won't be a lot of benefit to you unless your ideas turn out to be very lucrative. You might consider if it wouldn't be better to give the intellectual property to the University or to a charity.
The company can make contributions to a pension scheme (which if your ideas are very lucrative could be a very good way to get money out of the company). I would consult an accountant if the company is to receive any money, as you will need to change the status of the company from being dormant, and may need to set-up a payroll, and advice about bringing your wife into the business as a director so that she can also receive pension contributions.