What is income for housing benefit

insured

I am just wondering if someone who could tell me what is regarded as income for housing benefit, and whether capital affects the claim.
If an individual owns his own company (say a car repair company) and pays himself a small salary plus some dividends, I would assume that it would be the dividends plus salary which is the income.
However, if the company (ie the individual who owns the company) decides not to declare a dividend because, say, the funds are required for the purchase of new equipment, is the income still only salary plus dividends, rather than say, profit for the company?
If the company is worth £300k because it owns some valuable premises, is the value of the company taken into account for housing benefit. I know that the value is ignored for tax credits, but was wondering if the same situation applied for HB.
Many thanks for any replies.

HappyMJ

Is the company owned by the claimant by themselves as the only shareholder?

Capital expenses for new equipment are not an allowable expense for housing benefit but they are for HMRC. But...repair costs are an allowable expense. Basically, you need to keep 2 sets of books. One without the capital expenses and any other non allowable expenses for council and another for the HMRC.

The value of the capital in the business can be ignored but not always.

insured

Thanks for taking the time to reply.

HappyMJ wrote: »

Is the company owned by the claimant by themselves as the only shareholder?
I am thinking of a situation where the claimant is the only shareholder.

Capital expenses for new equipment are not an allowable expense for housing benefit but they are for HMRC. But...repair costs are an allowable expense. Basically, you need to keep 2 sets of books. One without the capital expenses and any other non allowable expenses for council and another for the HMRC.

So the claimant's income is the salary declared plus the dividend, rather than the claimant's share of the profit from the company?

The value of the capital in the business can be ignored but not always.
In what circumstances is the value of the capital in the business not ignored?

Is there any online guide which I could read?

Caz3121

here is one (think it should be standard) http://hackney.gov.uk/Assets/Documents/self-employed-advice-htbandctb.pdf