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

paddedjohn

have you told the council tax that you have moved back in with your mum? she will lose her 25% discount.

SkyWatcher_3

Two things:

Your mother may need to get permission from her landlord (particularly if it's the Council or a housing association) to have a business run from her property (if that's your intention). A five minute check of the tenancy agreement may avoid problems later.

Why are you setting up a limited company? There are costs associated with company formation and requirements to file accounts or returns etc, all of which is less bother if you are a sole trader. I'm sure you'll get better advice on a business forum but a limited company seems excessive at this stage, unless there are specific reasons why you need one.

merlin68

I live in council and you can't run a buisness from a council property. If your mother has house insurance that would also increase. You would also have to pay buisness rates on part of the property that you use.

sleepless_saver

I'd go back to the council and refer them to DWP circular HB/CTB A8/2011. get help from CAB or welfare rights if you need to.

This circular makes it clear that your enterprise allowance should be ignored for HB purposes, and that all they need to take into account are your net earnings which are presumably zero at this stage.

NB net earnings are what you take from the business after all expenses have been met. It's not the same as turnover (apologies if you're already familiar with this but some people confuse them).

heathcote123

merlin68 wrote: »

I live in council and you can't run a buisness from a council property. If your mother has house insurance that would also increase. You would also have to pay buisness rates on part of the property that you use.

Surely it depends on the type of business? I can't believe a self-employed chippy would be barred from living in a council house.

Business rates are not neccesarily applicable. The vast majority of home workers do not pay business rates.

http://www.bytestart.co.uk/business-rates-guide.html

"Whether your local council charges you business rates or not will depend on the kind of work you do and how much commercial work is done in the house. If the use of a room stays essentially domestic (for example you have a PC in your living room), then you won’t be charged business rates."

Don't tell them unless they ask.

lrh93

Hello All. Here is a quick summary.

1) It is mobile computer repairs all will be onsite the odd one will be brought back and worked on in my own time in my room so no room will be specifically used for business meaning no increase.
2) We know the landlord and I can do this as its not from the house
3) We dont have insurance anyway and I will put terms and conditions in place to protect against any breakins anyway.
4) I am setting up a limited company as it sets me apart from the flybynighters and it means that I can register with google adsense as a business etc. Accounts wise I wont be doing much so its simply keeping track of my ingoings and outgoings and doing the online filing once a year.


Overall I wont be using the house as a business at all and like I said some repairs will be in my own time if they cant be done on site and the odd pc may get dropped off. Landlord doesnt care and insurance is not in the equation at the minute anyway.

Other then this is there anything else I need to worry about? I was mainly worried they would turn around and say RERRRR NO MORE RENT!!. According to the summary they showed me my mother loses 3 pound a week council tax which I will pay.

If I do my business forecast and they freeze it for three months will they go and freeze it again once they have to check my earnings?

agrinnall

When you say 'insurance is not in the equation' are you just talking about home/contents insurance? Because you will definitely need liability insurance, what happens if you're working on a customer's computer and you accidentally fry the motherboard or drop the monitor?

lrh93

Yes, I will have liability insurance and have that covered. My business affairs are taken care of in regards to everything else. Its purely hb that has me worried. If they do freeze it for 3 months (due to backlog) for business forecast once they need to see the three months worth of books will they need to freeze it AGAIN? seems fairly unreasonable as were going to be constantly in debt for 900 pound..