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URGENT (HB)Can a none dependent run a limited company?

lrh93
lrh93 Posts: 14 Forumite
edited 6 February 2012 at 1:46AM in Benefits & tax credits
Hello All,
My mother is currently on job seekers and genuinely seeking a job after being made redundant 5 months ago. She claims job seekers and housing benefits. I have a brother 16 who is in school that she gets tax credit for also.

I am currently 18 and on job seekers but I am about to change onto new enterprise allowance in the next three weeks as I have been approved and my business idea is viable.

I have decided to go ltd as I will need it for a few things such as suppliers and google adsense etc.

As I previously lived with other relatives for about a year and have moved back in with my mother a week ago we need to tell the council that I am moved back in and as I am on job seekers my understanding is that nothing will be deducted from housing benefit.

Once I go onto new enterprise allowance though what happens? will my mother loose all benefits? I will be a none dependent and wont be exceeding probably 50 pound a week profit for the first few months. The websites say that they deduct 7.50 if you are in work and anone dependent.

I am extremely worried over this as it could hinder me from start my business. I can honestly say I am motivated to do well and want the opportunity. I am very scared though that it could cause us to lose housing benefit while I cant afford to contribute more.

To recap and clarify. I am a none dependent living with my mother who receives housing benefit and job seekers. I will be self employed with a limited company as a none dependent.

How will this effect her and will I only be required to pay according to what I earn?.

Any help would be great.

I live in the north east by the way.
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Comments

  • lrh93
    lrh93 Posts: 14 Forumite
    sorry I meant none dependent not dependent. i have edited this to reflect.
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    edited 6 February 2012 at 1:53AM
    non-dependant, not none.
    It's simply on your income and circumstances.
    http://www.tameside.gov.uk/housingbenefit/nondependentdeductions
    9.40/week less HB from April 1 for your level of earnings.
    (assuming you count as in remunerative work)
    It's gross income, not net that's important.
  • lrh93
    lrh93 Posts: 14 Forumite
    so even if Im self employed with a limited company it will be purely based on how much I earn as a non-dependent?. I want to do well for my self and with a bit luck I can earn enough so I pay for it all my self. I am just worried that they will turn around and tell my mother she cant get anything as we would have no home.
  • lrh93
    lrh93 Posts: 14 Forumite
    Also, what type of benefit is the new enterprise allowance? is it ESA or whatever its called? as that is exempt from deductions on HB for the first 13 weeks.
  • The only thing your mum will lose is some HB and some of the council tax benefit. We expect you to make that up to her :p
  • lrh93
    lrh93 Posts: 14 Forumite
    awesome so its only based on my earnings both for self and someone else? i dont mind paying like that.
  • lrh93
    lrh93 Posts: 14 Forumite
    I went to the council today and apparently they will FREEZE MY MOTHERS HB FOR 3 MONTHS while they investigate..... how the hell can they do this? how are we supposed to pay the rent?
  • i assume as there is going to be a change of circumstance they need to confirm that,does seem abit harsh
  • lrh93
    lrh93 Posts: 14 Forumite
    apparently they recheck every three months as well so do you think they will go and freeze it agian for three months everytime they check?
  • lrh93
    lrh93 Posts: 14 Forumite
    bump. surely they cant cut us off for 3months?
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