Tweet
Hey guys, I have a strange situation that I would like some advice on (And a sanity check to make sure I got this correct), and perhaps a no win no fee solicitor!
I have been claiming ESA for about 10 years and last year, I incorporated a new business that is now set to be an events business which I am hoping will be my route off benefits after such a long time of dependance. It's a process that matches well with my mental health issues and looks to be sustainable. This would mainly include hiring equipment and producing events and providing crew to events. Our big project this year is a festival in September which is generating revenue via ticket sales and will be having some rather large purchases, such as venue and big top hire.
This month, I have been migrated onto Universal Credit which has different rules. One of which is that self employed people need to declare a monthly profit/loss statement. What makes this concerning is that the same rule applies to Limited Companies that I am a director of simply because I have control of the finances, despite the fact that they are not my own finances. I have explained to the advisor my situation and that the business is it's own limited entity that requires these funds for its own services or purchase of goods essential to the running of the business, but he simply says that this is the way Universal Credit runs.
With a bit of research, I see that this is indeed the way that Universal Credit appear to operate. Unfortunately, if I was to state that these are my funds, it would be misrepresenting finances as my own and I would effectively be committing fraud, even if has been advised to me by Universal Credit. I would therefore be liable, including DWP for knowingly advising me to misrepresent my finances.
Where this becomes a problem for me is that this event is in September, and there will need to be money saved in the business account in order to make the larger payments such as the £8000 venue hire, and by saving money in the account, I would be declaring that I have myself, earned this money, affecting my entitlement for UC.
Ironically they say that I don't need to declare it if I'm paying myself via PAYE because it will show up on their system twice. Surely I should only declare if I am paying myself dividends or a directors loan then, not just by having the money in the bank? By reducing my entitlement it would be encouraging me to do what they are asking me to declare, and use the funds as my own, which would effectively be embezzlement of money.
It's almost like they don't want my business to save any money, simply because I'm on benefits, which means I won't be able to pay myself a salary and get off benefits, which seems like it goes against their duty of care in helping me get back into work.
There are a number of stakeholders, who like myself, have not been paid, and I think that this is pretty crazy that the DWP would be asking this of me and want to change this, not just for myself, but other directors who are in a similar situation.
I have been claiming ESA for about 10 years and last year, I incorporated a new business that is now set to be an events business which I am hoping will be my route off benefits after such a long time of dependance. It's a process that matches well with my mental health issues and looks to be sustainable. This would mainly include hiring equipment and producing events and providing crew to events. Our big project this year is a festival in September which is generating revenue via ticket sales and will be having some rather large purchases, such as venue and big top hire.
This month, I have been migrated onto Universal Credit which has different rules. One of which is that self employed people need to declare a monthly profit/loss statement. What makes this concerning is that the same rule applies to Limited Companies that I am a director of simply because I have control of the finances, despite the fact that they are not my own finances. I have explained to the advisor my situation and that the business is it's own limited entity that requires these funds for its own services or purchase of goods essential to the running of the business, but he simply says that this is the way Universal Credit runs.
With a bit of research, I see that this is indeed the way that Universal Credit appear to operate. Unfortunately, if I was to state that these are my funds, it would be misrepresenting finances as my own and I would effectively be committing fraud, even if has been advised to me by Universal Credit. I would therefore be liable, including DWP for knowingly advising me to misrepresent my finances.
Where this becomes a problem for me is that this event is in September, and there will need to be money saved in the business account in order to make the larger payments such as the £8000 venue hire, and by saving money in the account, I would be declaring that I have myself, earned this money, affecting my entitlement for UC.
Ironically they say that I don't need to declare it if I'm paying myself via PAYE because it will show up on their system twice. Surely I should only declare if I am paying myself dividends or a directors loan then, not just by having the money in the bank? By reducing my entitlement it would be encouraging me to do what they are asking me to declare, and use the funds as my own, which would effectively be embezzlement of money.
It's almost like they don't want my business to save any money, simply because I'm on benefits, which means I won't be able to pay myself a salary and get off benefits, which seems like it goes against their duty of care in helping me get back into work.
There are a number of stakeholders, who like myself, have not been paid, and I think that this is pretty crazy that the DWP would be asking this of me and want to change this, not just for myself, but other directors who are in a similar situation.