Council Tax benefit claim, information requested.

yellowplum

I have had a council tax claim for a year or so now, and it has come up for renewal. I have received a letter from the local authority requesting whether I have paid myself any money from a Limited company that I am Director of.

I haven't paid myself anything. I am currently getting Working Tax Credits and also some rental income from a lodger.

However the other two questions on the letter where strange. I was requested to provide details of the assets and liabilities of the limited company and also advise how many directors the company had.

I do not see what relevance this has to do with my individual claim.

I replied to the letter although questioning it, as anyone with knowledge is no doubt aware a limited company is a separate entity and if and when I do pay myself it is under PAYE not self employment (which they do not understand).

I then received a telephone call requesting I provide them with details of the share split the board agreed to sometime in June 2010. Also that I had an 0871 number (and I quote 'since I worked for a telephone service provider previously I know you get money from it') I informed the handler that the number belongs to the company and it is not my revenue stream, if you decided to call the number that is your prerogative.

I have not provided them with this information and I haven't received anything in the post requesting it.

It seems this person is making requests from there own back rather than following any regulated framework.

Moreover what I am interested in finding out is what information they can request from me, and what I am obligated to provide. Is the Limited Company obligated to provide anything? I do not see why, I cannot provide details of other people since it would breach data protection legislation and also company confidentiality.

welshmoneylover

yellowplum wrote: »

I have had a council tax claim for a year or so now, and it has come up for renewal. I have received a letter from the local authority requesting whether I have paid myself any money from a Limited company that I am Director of.

I haven't paid myself anything. I am currently getting Working Tax Credits and also some rental income from a lodger.

However the other two questions on the letter where strange. I was requested to provide details of the assets and liabilities of the limited company and also advise how many directors the company had.

I do not see what relevance this has to do with my individual claim.

I replied to the letter although questioning it, as anyone with knowledge is no doubt aware a limited company is a separate entity and if and when I do pay myself it is under PAYE not self employment (which they do not understand).

I then received a telephone call requesting I provide them with details of the share split the board agreed to sometime in June 2010. Also that I had an 0871 number (and I quote 'since I worked for a telephone service provider previously I know you get money from it') I informed the handler that the number belongs to the company and it is not my revenue stream, if you decided to call the number that is your prerogative.

I have not provided them with this information and I haven't received anything in the post requesting it.

It seems this person is making requests from there own back rather than following any regulated framework.

Moreover what I am interested in finding out is what information they can request from me, and what I am obligated to provide. Is the Limited Company obligated to provide anything? I do not see why, I cannot provide details of other people since it would breach data protection legislation and also company confidentiality.

I would have thought that anything to do with a claim for benefit has to be declared.

Is the company trading and making a profit or have you just started the business up?

Emmzi

I expect they are making sure you aren't hiding loads of personal assets under the company umbrella which, actually, seems fair enough to me. If you've nothing to hide, you've nothing to worry about.

Arg

I think the question he asked was the legality of what they were asking not why they're asking.

Emmzi

ah. Well he doesn't hav to provide any info, but then nor do they have to provide any benefit. I think it is a legitimate assets enquiry so yes, he shuld provide the info.

Arg

but what is the legality of it?

HappyMJ

The legality of it you own all the shares of the limited company they need to know what the company is worth. Over £6,000 and it will start affecting benefits. If there are other directors who may or may not have shares then you split the value of the company between you.

real1314

Assuming you are a director and a shareholder/owner, regardless of the company operating as a separate entity (I think you're skating on thin ice using too little knowledge here), you as an owner (/part owner) may have some equity in the company.
It is completely open to the Local Authority to know whether you have potentially deprived yourself of capital and/or income in order to increase the amount of HB you can receive. They are not asking the company to do something, they are asking YOU as the HB recipient. However your reply would also involve your role as a director and would also be bound by the requirement to behave honestly under the companies act.

You're on a loser if you think you can hide behind data protection on this one. :cool:

MrsManda

yellowplum wrote: »

I haven't paid myself anything. I am currently getting Working Tax Credits and also some rental income from a lodger.

What paid work do you do in order to get WTC? Is this related to your company?

The information at this link may be of help: Housing Benefit
http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/working-it-out/income-and-capital/#aa35

Income from employment

This explains what counts as your income from work you do when you are employed by someone else. If you are a company director or any other officeholder in a company you are classed as an employee of that company.

yellowplum

MrsManda wrote: »

What paid work do you do in order to get WTC? Is this related to your company?

The information at this link may be of help: Housing Benefit
http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/working-it-out/income-and-capital/#aa35

This was my point, I will read this in a moment. However my point isn't in providing them with information it is the legality of what I have to provide them.

I am employed by the company as company secretary and company director, the company has three other directors - I cannot provide information relating to the company that is not in the public domain.

My point is that I have answered the questions that relate to me. I am questioning why I have to provide details such as profit and loss of the company that includes it's assets and liabilities.

I understand the point regarding the £6k share limit and I do not own more than £500 of shares. Not all of these are paid up which also complicates the situation.

I was also asked what the value of the company is. How can you value a Private Limited Company (unless I employ Ernst and Young)

So back to my original question, I understand why they want to know about my status to enable me to receive council tax discount (benefit) however I don't see why they need to know personal information relating to the company itself that would never come into play to assess the claim in the first place.

pandaspot

Didn't you get asked all these questions when you original did made the claim?