Housing & Council Tax Benefit if Director of a Limited Company

Loulou75

Hi all

I was recently in receipt of JSA and was signed off last week Thursday to run my own business. I am now the director of a Limited Company working from home. As I only started working in Thursday, I have no money coming in except for Self-Employment credits from the job centre.

I need to apply for the housing & council tax run-on that is for 4 weeks then apply for housing benefit to continue after the four weeks. I also need to apply for working tax credit.

The housing benefit people have given me forms to complete about a change in circumstance and also forms for self-employed earning information and a certificate of earning form.

My accountant has advised me that because I have a limited company, I am not classed as self-employed. I am the director of my company. He said that I need to become and employee of my limited company.

The certificate of earnings form asks for a payroll number (my accountant said that he is applying for one for me) and it asks that my employer gives and estimate of my earnings for the next 5 weeks. I don't have a clue what to put, my company isn't making any money yet.

Does anybody know anything about having a Limited Company and applying for housing & council tax benefit and Working Tax Credit? My accountant is adamant that I should not complete the Self-employed earnings information form.

Sorry for the long post but please can somebody help me? I went to the housing office today and they looked at me like I had two heads. I then phoned them, and they should told me to complete my forms. I need to sort it all out otherwise I won't be able to pay my rent.

neil277

Hi
Sorry but you will not be able to claim a thing being a director

Thanks

Neil

Loulou75

Even though I am not making any money at all at present? Do you know what my options are?

karenx

So your going to be an employee but not earning a wage? For WTC you need to be in paid employment of more than 30 hours per week so looks like you wont qualify for that. You cant say you are in employment but not earning anything. And like you said your not self employed so you cant say that to tax credits

Loulou75

I just want to cry! You try to do the right thing by working. I am hoping that my business will start to pick up. It's an internet business so I am hopefully bound to start earning something but it won't be a lot to start off with.

I really don't know what to do. :-(

welshmoneylover

Loulou75 wrote: »

I just want to cry! You try to do the right thing by working. I am hoping that my business will start to pick up. It's an internet business so I am hopefully bound to start earning something but it won't be a lot to start off with.

I really don't know what to do. :-(

What you need to do is become focused on what you want to achieve?

Are you running the business as a viable concern and long term or have you set out to maximise your benefit entitlement?

What is your business idea?

You can also post on the small business board for advice.

Loulou75

welshmoneylover wrote: »

What you need to do is become focused on what you want to achieve?

Are you running the business as a viable concern and long term or have you set out to maximise your benefit entitlement?

What is your business idea?

You can also post on the small business board for advice.

Thanks. I HATE being on benefits. This has been the worst part of my life. I have always had decent jobs. I want my business to do very well. I am making and selling handmade novelty soaps and bath cosmetics. I have put a lot of work into it and will continue to do so. It's just that I need a little support whilst I am getting up and running. The job centre signed me off as they wanted me to get my self-employment credits now in case they were scrapped after tomorrow. I have no doubt that I can do well, but it is just the initial stages.

Loulou75

briancrum wrote: »

get a proper job???? EARN a Wage rather than trying to scrounge???

For your information I have ALWAYS had proper jobs, earned decent money and paid lots of tax. This is the only time in my life when I have actually claimed benefits and it's due to the recession. I want nothing more than to work, hence why I set up my company. I wasn't having any luck finding work so I'm trying to do something different. It's just that sometimes in life people need help as my rent is high...like I said, I've paid my tax in the past!

Are you really just browsing this forum to be judgemental? Have you nothing better to do? Don't knock me, I am trying my best!

intranicity

Not sure if it's to late, but why do you need to be a Limited Company at the moment. You could (I would think) run your business being self employed, certainly until you started to make a living from it. Is there a reason why you need to be a Ltd Company?

Loulou75

intranicity wrote: »

Not sure if it's to late, but why do you need to be a Limited Company at the moment. You could (I would think) run your business being self employed, certainly until you started to make a living from it. Is there a reason why you need to be a Ltd Company?

Hi, it's what my accountant suggested. It's already set up now too. Do you think it's a hindrance?

I really want to succeed more than anything.

intranicity

Loulou75 wrote: »

Hi, it's what my accountant suggested. It's already set up now too. Do you think it's a hindrance?

I really want to succeed more than anything.

I'm no expert, but my understanding of a Limited Company is to protect you personally if the Company went bust, but as a small one (wo)man business, with I presume little borrowing or liabilities at present (And if you did borrow from the bank as a Ltd Company, they would no doubt expect you to sign up to being personally liable anyway), I can't see a need or reason right now to be anything other than self employed (Might be many reasons why there is a benefit though).

Being self employed to me makes much more sense, and you might have a better chance of help in the way of benefits if you were.

I'd suggest a chat with someone other than your accountant to make sure you are getting the best advice.

Good luck and hope you're a millionaire soon, or if not at least making enough to be self sufficient again :beer: