Housing & Council Tax Benefit if Director of a Limited Company

HappyMJ

I supplied the company accounts to the council....which reminds me they want them again in a few days. As you aren't earning much you wouldn't be earning enough to pay yourself so you won't issue payslips. It's not necessary to do that. However, I do pay myself from the company a fixed weekly wage which equals the profit of the company averaged out over the last 26 weeks. They'll start by asking for 6 then maybe 13 then 26 weeks of accounts to get the payments right.

Loulou75

HappyMJ wrote: »

I supplied the company accounts to the council....which reminds me they want them again in a few days. As you aren't earning much you wouldn't be earning enough to pay yourself so you won't issue payslips. It's not necessary to do that. However, I do pay myself from the company a fixed weekly wage which equals the profit of the company averaged out over the last 26 weeks. They'll start by asking for 6 then maybe 13 then 26 weeks of accounts to get the payments right.

I only started on Friday so don't have any accounts. Did you provide an estimate when you first started? I have been told to submit that for the next 5 weeks in order to be eligible for the 4 wks run on of HB & CT. I assumed that the job centre informed them and all would be ok but not the case. My HB & CT has now been suspended pending info but I am not sure what to give them. I have popped in there 3 times but the people on the front desk look blank.

HappyMJ

Loulou75 wrote: »

I only started on Friday so don't have any accounts. Did you provide an estimate when you first started? I have been told to submit that for the next 5 weeks in order to be eligible for the 4 wks run on of HB & CT. I assumed that the job centre informed them and all would be ok but not the case. My HB & CT has now been suspended pending info but I am not sure what to give them. I have popped in there 3 times but the people on the front desk look blank.

That's exactly what they did with me. Fully entitled to the run-on but they suspended it delaying payments even further. You'll need to have some sort of accounting software. I got mine from Natwest. Keep it up to date on a daily basis and you can print out accounts whenever they want them. It's very basic but they are releasing a new version in April so I'll switch to that in the new financial year and I'm hoping it will be easier to use.

Loulou75

HappyMJ wrote: »

That's exactly what they did with me. Fully entitled to the run-on but they suspended it delaying payments even further. You'll need to have some sort of accounting software. I got mine from Natwest. Keep it up to date on a daily basis and you can print out accounts whenever they want them. It's very basic but they are releasing a new version in April so I'll switch to that in the new financial year and I'm hoping it will be easier to use.

Thanks again. I'll get some accounting software and do it that way. Hope your business is going well.

milfield

Loulou. Just a small point, but before you signed off, your Adviser would (should) have checked you had registered with, or were in the process of obtaining your UTR number from HMRC as self-employed in order to get the S/Emp Credit. This is part of the conditionality of receiving S/Emp credit. HMRC must have therefore deemed you to be self-employed rather than employed?

If you are not registered as self-employed, but are employed instead, then you cannot get the S/Emp credit unfortunately.

fluffymovie

Hi loulou, yep I work in HB.

We would class you as an employed earner and calculate your income in accordance with the HB regs 2006 as far as that goes.

I would suggest the following....
1 contact your la and request that they remove the suspension on your award and issue the run on. This will involve them actually cancelling the award on their system (likely northgate I world or academy) and loading the EPP as we call it.

2 You then send in your application form and put yourself as employed and not self employed.

3 note on the form that business just started and leave it with them to ask you for info in line with their procedures.

4 make sure you get a receipt and keep a note of time and date of any phonecalls. Take their name too!!

5 apply for tax credits ASAP!

6 good luck and feel free to pm me if you need to ?

poppasmurf_bewdley

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.

Your accountant probably suggested it because Limited Companies have to have accounts prepared by Accountants.

Being a self employed sole trader is much easier and simpler to do.

And as a sole trader, you can offset any loss you have against your earnings from a job for Tax Credit purposes (or at least you used to be able to).

Loulou75

milfield wrote: »

Loulou. Just a small point, but before you signed off, your Adviser would (should) have checked you had registered with, or were in the process of obtaining your UTR number from HMRC as self-employed in order to get the S/Emp Credit. This is part of the conditionality of receiving S/Emp credit. HMRC must have therefore deemed you to be self-employed rather than employed?

If you are not registered as self-employed, but are employed instead, then you cannot get the S/Emp credit unfortunately.

Hi, HMRC sent me my UTR number for corporation tax and I gave it to the Job Centre alongside my Certificate of Incorporation for my Ltd Company and my business bank details. They accepted it all and did not say anything about it.

Orville

Loulou75 wrote: »

Thanks again. I'll get some accounting software and do it that way. Hope your business is going well.

Did the jobcentre mention to you the back to work grant..? If you go self employed you are entitled to an extra £40 a week payment for the first year. You do however have to fill out what they would call a time sheet documenting the hours you work (minimum of 16 per week).

I am on the route of going self employed and have been told i can claim tax credits and working tax credits and this payment also. i can also do a seperate job and as long as it is about 16 hrs a week around the £6 an hour mark, that would not affect my working tax credits claim as the cutoff point is 5.5k before it does start to affect you.

I get a feeling you have been poorly advised.

Get back down the JC and have a word with them asap.

I should however point out that i am a single parent. Weather this has had an affect on what i can claim i am not sure.

Loulou75

poppasmurf_bewdley wrote: »

Your accountant probably suggested it because Limited Companies have to have accounts prepared by Accountants.

Being a self employed sole trader is much easier and simpler to do.

And as a sole trader, you can offset any loss you have against your earnings from a job for Tax Credit purposes (or at least you used to be able to).

Ah yes, you have a point. Hopefully everything will work out in the end. I am just looking forward to when my company is earning enough for this whole benefits thing is a distant memory. Maybe I should go on Dragon's Den. Can you imagine with my lack of business knowledge? lololol