New Company - Some Questions

numberkruncher

Hey guys,

(Note: Copied from another forum on this website by recommendation)

First off a little context.

I am living with my parents whom are both unemployed and seeking various benefits including disability. I was working for a shop which has closed down due to bad trading.

I have started a limited company and am the sole director and shareholder, but at present I am not taking any wages and have not signed on to PAYE. I do not intend to take any wages until the company has established. I am working from home.

My parents have to go to a meeting with the council every so often and they will want an update on what is going on.

Several Questions

Q1. As I am not taking any wages at this point, am I considered to be an employee of the company? Or am I considered unemployed?

Q2. How much council tax should I be paying?

Q3. How will this effect my parents?

When I formed the company I asked these questions to my accountant who assured me that there wouldn't be any issues with this; and that the government were trying to encourage people to start new companies.

I would really appreciate some input from others on this matter before it is too late.

Kind regards,

McKneff

If you are not taking a wage from your company how are you paying your way at home. You really cant expect your parents to keep you.

You are not unemployed.

You dont pay council tax yourself. Your parents pay the council tax. You pay something in your bed and board towards it.

Cant help with anything else but I presume someone else will be along soon to help.

numberkruncher

I have a small amount of savings which I am paying my parents with at the moment. It is a long story, but due to my parents bad health and my grandparents (former father's) shop failing, I haven't been able to follow my career temporarily.

My parents are exempt from council tax, but I am worried about how business rates will affect things. My accountant said that I probably wouldn't have to pay anything because I am not doing anything to disturb neighbours, not having any visitors (I go to clients) or deliveries, and that I am working from my bedroom.

I tried contacting citizens advice a couple of times, but I haven't received any responses and I have been unable to get through by phone.

Thanks.

Mojisola

I would have thought you should be paying council tax but get the reduction for a single person as your parents are exempt. Business rates shouldn't apply unless you've got a separate dedicated room for the business.

numberkruncher

I believe that I am paying for reduced council tax as a part of my housekeep. It was just the business rates that were of concern to me.

Thank you for clarifying this for me. It gives me a little peace of mind!