Claiming benefits as a company director

taylor121

I currently live with my partner and two kids. She dosnt work and i am currently trainning to be a teacher. While i am completing my degree i work part time as a teacher and i am setting up a limited company as this financially is the best way to get paid.
We currently get housing child tax and income support and am trying to find the best way to pay myself as a company director to capitalise on any benefits we will be intitaled to. People have told be about paying myself minimum wage, and the rest in dividends or paying me and my partener both minimum wage (her as the secretary). Is anyone else in the same boat as me or have experience with a simular predicament! please help...

dmg24

Why not just be honest and declare exactly what you earn?

Why are you claiming income support? Is one of you incapacitated?

taylor121

First thread was wrong its not income support its working tax credits.

Let me clear something up im not trying to be dishonest or brake any rules, but i would like to take advantage of anything that will help finance my family untill i have finished my degree! As the business and myself are classed as a different entety i am just trying to find the best way to paymyself!

dmg24

taylor121 wrote: »

First thread was wrong its not income support its working tax credits.

Let me clear something up im not trying to be dishonest or brake any rules, but i would like to take advantage of anything that will help finance my family untill i have finished my degree! As the business and myself are classed as a different entety i am just trying to find the best way to paymyself!

You are trying to play the system. Perhaps you should read some of the other threads on this board, you will see that most people would happily receive the salary of a teacher rather than claim any benefits.

Possibly best to look up the information yourself. I doubt many people on here will be willing to help.

Good luck with your studies.

alwaysonthego_2

Out of interest what type of teacher are you training as?

As dmg as said you should declare any profit that you make to tco.

You will need to inform LA so you do not get overpaid LHA.

taylor121

Yes i will be very happy with the salary of a teacher but unfortunatly i recieving the salary as a student untill i am full time. I am teaching public services at college level. I think if you can legaly play the system then i dont blame anyone for doing it. If the money is there and it means my kids get a better life because of it. Il do it. Im sure the tax i have paid throughout my life entitles me to do this!

zzzLazyDaisy

This may help you to understand what factors are taken into account when considering a claim for tax credit. If you scroll down, you will find a section on Income Deprivation, in relation to dividends.

http://www.litrg.org.uk/help/lowincome/taxcredits/whatisincome.cfm

Hope this helps

Note, I found this on a google search. I don't have any particular expertise in this area, so if having read the information, you still have queries, you might want to give the tax credit helpline a ring 0845 300 3900 (sorry it is an 0845 number)

taylor121

Thank you Daisy! Im new to all this so find it abit confusing!!

Hopefully someone in my situ will see this thread!

mandij30

Shocking Grammar for a Teacher lol

taylor121

Due more to laziness than anything else!

MamTor13

Taylor121, my boss the other day asked me to look into this issue regarding one of our clients setting up their own business and being the company director rather than self-employed. He wanted to see which would be better for the client in relation to WTC. They want, because of severe mental health problems, the flexibility to work around their symptoms, but this would include irregular/strange hours, time off to see psychiatrist and CPN, possible periods in hospital. This is virtually impossible in today's job market and is what has kept them on Incapacity Benefit despite having amazing IT skills/web design. It's hard to think where on your CV you include your strengths as your bipolar mania - will work every hour god sends, but then your weaknesses - depressive bouts of inactivity - may not be seen at work for a few weeks, especially winter. Anyway, that's by the by, I looked into it, didn't really understand it and then pretended I had the possible first symptoms of swine flu ( I sneezed ) and he told me to go home early with fear. In the brief time I did look into it I found this discussion, perhaps you will find it useful. After you've read it you can explain it to me before I have to go back to work on Monday.



http://www.accountingweb.co.uk/item/189023