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  • FIRST POST
    • delirious
    • By delirious 12th Jan 18, 6:12 PM
    • 161Posts
    • 18Thanks
    delirious
    Tax Credits when Director of LTD company
    • #1
    • 12th Jan 18, 6:12 PM
    Tax Credits when Director of LTD company 12th Jan 18 at 6:12 PM
    Up until 2016 I have been in full time employment and also a director of a startup company. My wife is disabled and is also director of the same startup company.

    When I lost my full time job in feb 2016, I rang up tax credits and advised them that I was now working full time for the ltd company and expecting a salary of £500 a month (this is being paid to a directors loan account as thereís no physics money available to pay me a wage yet). I told them my wife would be continuing to earn zero until the company could afford to pay her. All was fine and our tax credits was adjusted accordingly.

    However, we have now received a letter stating that our claim has been selected for review and that there is no record of myself or my wife being employed by the limited company, but doesnít state what they need from me. The letter does mention that the call centre staff canít take the required information over the phone.

    So, now Iím really confused and am worried that we are going to lose our only income in the coming weeks.
Page 1
    • BoGoF
    • By BoGoF 12th Jan 18, 6:29 PM
    • 2,839 Posts
    • 2,084 Thanks
    BoGoF
    • #2
    • 12th Jan 18, 6:29 PM
    • #2
    • 12th Jan 18, 6:29 PM
    Is the company trading?
    Turnover?
    • Darksparkle
    • By Darksparkle 12th Jan 18, 7:50 PM
    • 4,814 Posts
    • 3,129 Thanks
    Darksparkle
    • #3
    • 12th Jan 18, 7:50 PM
    • #3
    • 12th Jan 18, 7:50 PM
    If earning more than £490 per month you should be registered for paye.
    • PersianCatLady
    • By PersianCatLady 16th Jan 18, 11:35 AM
    • 421 Posts
    • 387 Thanks
    PersianCatLady
    • #4
    • 16th Jan 18, 11:35 AM
    • #4
    • 16th Jan 18, 11:35 AM
    Up until 2016 I have been in full time employment and also a director of a startup company. My wife is disabled and is also director of the same startup company.

    When I lost my full time job in feb 2016, I rang up tax credits and advised them that I was now working full time for the ltd company and expecting a salary of £500 a month (this is being paid to a directors loan account as thereís no physics money available to pay me a wage yet). I told them my wife would be continuing to earn zero until the company could afford to pay her. All was fine and our tax credits was adjusted accordingly.

    However, we have now received a letter stating that our claim has been selected for review and that there is no record of myself or my wife being employed by the limited company, but doesnít state what they need from me. The letter does mention that the call centre staff canít take the required information over the phone.

    So, now Iím really confused and am worried that we are going to lose our only income in the coming weeks.
    Originally posted by delirious
    Unless the company starts making money, this isn't going to be a reliable source of income long term.
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