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ESA and owning a business
- purplesky
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10 years 2 months ago - 10 years 2 months ago #117305 by purplesky
ESA and owning a business was created by purplesky
Hi,
I know someone who was running a business and has suddenly become very ill and disabled. He should be able to qualify for the ESA support group regarding the level of his disability, and once he has been disabled for 3 months he should qualify for the higher rates of PIP as he cannot walk at all and cannot feed, wash, dress himself, write etc. However he was running a business when he became ill. Someone else is now managing the business.
a. Will he be able to claim contributory ESA (support group) assuming he has paid all his NI, if someone else is managing the business. I have no idea about the finances of the business and whether it was making money or not but I guess he would be receiving income from it.
b. If he is allowed to receive ESA, where are the boundaries between what is work and what is not when owning a business? He is clearly unable to do what I would call proper work, but don’t know how the DWP define work. E.g. Would it be classified as him working if he gave advice or answered questions from the person now running the business? Would it be classified as him working if he contributed to business decisions e.g. whether to downsize it.
Thanks.
I know someone who was running a business and has suddenly become very ill and disabled. He should be able to qualify for the ESA support group regarding the level of his disability, and once he has been disabled for 3 months he should qualify for the higher rates of PIP as he cannot walk at all and cannot feed, wash, dress himself, write etc. However he was running a business when he became ill. Someone else is now managing the business.
a. Will he be able to claim contributory ESA (support group) assuming he has paid all his NI, if someone else is managing the business. I have no idea about the finances of the business and whether it was making money or not but I guess he would be receiving income from it.
b. If he is allowed to receive ESA, where are the boundaries between what is work and what is not when owning a business? He is clearly unable to do what I would call proper work, but don’t know how the DWP define work. E.g. Would it be classified as him working if he gave advice or answered questions from the person now running the business? Would it be classified as him working if he contributed to business decisions e.g. whether to downsize it.
Thanks.
Last edit: 10 years 2 months ago by Gordon.
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10 years 2 months ago - 10 years 2 months ago #117310 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic ESA and owning a business
purplesky
From Regulation 41 of the ESA Regulations 2008
41. (1) For the purposes of paragraph 6(1)(e) of Schedule 1 to the Act (conditions of entitlement to an income-related allowance), “remunerative work” means any work which a claimant does for which payment is made or which is done in expectation of payment, other than work listed in paragraph (2) of regulation 40.
The problem with your friends situation is that it is not the normal employer/employee situation that we and the DWP are used to dealing with, for that reason I am going to suggest that they get face to advice from a trained advisor. It may be that their situation is covered under the legislation with no problem, but if it is not then it may be important that it is presented to the DWP in the right way from the outset.
Do an internet search for "welfare advice" with their postcode, town or county.
Gordon
From Regulation 41 of the ESA Regulations 2008
41. (1) For the purposes of paragraph 6(1)(e) of Schedule 1 to the Act (conditions of entitlement to an income-related allowance), “remunerative work” means any work which a claimant does for which payment is made or which is done in expectation of payment, other than work listed in paragraph (2) of regulation 40.
The problem with your friends situation is that it is not the normal employer/employee situation that we and the DWP are used to dealing with, for that reason I am going to suggest that they get face to advice from a trained advisor. It may be that their situation is covered under the legislation with no problem, but if it is not then it may be important that it is presented to the DWP in the right way from the outset.
Do an internet search for "welfare advice" with their postcode, town or county.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 10 years 2 months ago by Gordon.
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