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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3694
Experience:  Solicitors 2 years plus PQE
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Dear Sir/Madam. My question is about welfare benefits.

Customer Question

Dear Sir/Madam.

My question is about welfare benefits. I run a limited company and lent some money from the company to a friend. This is being repaid. I have been in very poor health and wish to claim ESA. On the form it asks if I am owed any money. Since the money is owed to the company and not me individually do I answer NO to this question or do I answer YES, since I own and control the company.

Thank you

Steve
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome my name is ***** ***** I will assist you.

A company is separate legal personality so if the loan came from the company and using company funds then you cannot say that the loan came from you personally.

If you are asked whether you own the company then that is a different question, and if you are a shareholder of it you will potentially have to answer yes to this question.

Kind regards

AJ
Alex J. and other Law Specialists are ready to help you
Customer: replied 3 years ago.


Dear Alex


 


Thank you for your reply. So if I understand you correctly, if my company lends money to a friend and this is being repaid to my company, then it could not be said that I have lent money personally and that it is being repaid to me personally. So if I am asked. does anyone owe me money personally, I would answer NO because the company is a separate legal entity.


 


However, if I am asked if I own the company I would answer YES. because although this money is not being repaid to me personally, . but to my company, I am a shareholder of the company.


 


The question on the application form asks, does any one owe you money? Would I be correct in assuming that the answer to this question is YES, because I am a shareholder of the company the loan is being repaid to?


 


Thank you


 


Regards


 


Steve


 

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

You can answer no because the company is a separate legal entity.

I presume the money came from the company's bank account and has not indirectly come from your account?

If you loaned the company money in order to loan this individual money then you would have to answer yes.

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 3 years ago.

Dear Alex


 


Your answered has answered my question perfectly. Thank you very much.


 


Kind regards


 


Steve

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Can you tell me anything else that is on the form that qualifies this?

You have to ask yourself if they look at the arrangement and say it was deliberately done to mislead then that will doubtless cause problems.

If it is genuinely a case that these are company funds in a trading company that you have not yourself loaned to the company, then you can truthfully say it is a distinct legal personality and you have no right to have the money repaid to you personally.

Kind regards

AJ