Do I work?

Adams_Dad

My wife is currently completing a form (A2?) to review her income support.

Now my son has set up a business - a limited company - in the hope of generating a little money thru uni. He & I are directors of that company though I am not a shareholder - he is the only shareholder.

The company s not registered at our home address.

I have said on the form that I am a director, but don't know what to put with regard to do I do any work. I have helped him set it up and keep my eyes on the accounts because that is what I did in my working past - and because I'm his dad.

It was intended that I'd be paid £20 a week as a director (which is allowable income for my wifes IS claim) but due to one thing and another there hasn't been the business, it is currently running at a loss so no wages have been paid to me (or my son) since the company was formed in June. I did ask at the local job centre but they said I had to wait until I had a pay-slip to report that to them.

I can't work in a 'real job' because need to be at home as my wifes 'carer'.

So, the company has paid me nothing but I have (kind of) done some work. No benefit in kind other than iirc 2 ink cartridges and a pack of paper, which have been used for the business anyway.

Now I've filled you in on the background, any opinions on whether I am working or advice on legitimately explaining the situation without compromising my wife's claim?

HappyMJ

No you don't work. Simply being a director isn't neccesarily a job it's more a responsibility.

wayne0

if your simply helping your son, why are you a director? could you not help him without being a formal director? (it would avoid these types of "confusions") but you could register as self employed and be an "Advisor" that invoices your sons company etc when you need to work to be paid etc...

- only net pay is counted as income, plus mileage etc from your home (registered business address) to your sons business presmesis (for business purposes) would be tax deductable - and therefore deductable from any such income... (as with ink/consumables etc)

Adams_Dad

Hi Wayne0

I'm a director because
a) There needs to be more than 1 person in a limited company; and
b) He is 17, so Dad is useful for signing bank paperwork & that kind of thing.

I understand what you are saying about pay, but I am sure I have read in the past that one can't 'pretend' to volunteer for something where you would normally be paid. It is in the hazy past but may have been called something like 'notional earnings'. The question on the form specifically asks about 'work' and I'm trying to find out if giving him parental (business) advice, answering his phone when he's not in (I have to - it's our home phone too) and putting things in the post office when I'm out shopping count as 'work'.

Crikey, I've even done his paper-round for him on a couple of occassions when he's been ill!