Can a Director of a loss making Ltd Co, claim benefits

Housing_Benefit_Officer

Yes as a Director they are interested in the income you receive as a Director not the profit of the Company. If you have nil drawings then you have nil income.

NYM

Housing_Benefit_Officer wrote: »

Yes as a Director they are interested in the income you receive as a Director not the profit of the Company. If you have nil drawings then you have nil income.

I don't doubt that what you've written is absolutely correct...:D
however, I think it's incredible that someone acting as a Director and choosing not to draw a salary could still have a substantial sum in a Company account, but it isn't taken into account for benefits :silenced:

Housing_Benefit_Officer

NYM wrote: »

I don't doubt that what you've written is absolutely correct...:D
however, I think it's incredible that someone acting as a Director and choosing not to draw a salary could still have a substantial sum in a Company account, but it isn't taken into account for benefits :silenced:

The company is a separate entity. If self employed people want to claim maximum benefits then form a company and take minimal drawings.

If you are a director of a company, we treat you as an employee
and not self-employed.

Housing_Benefit_Officer

fishybusiness wrote: »

I tend to agree - I was never asked about assets, only income from various sources whilst a director.



Wouldn't surprise me, although the council did ask me for bank statements regularly, plus profit and loss, whilst I was self employed. Our benefits were adjusted on the sliding scale depending on my profit.

The change came when I registered as a limited company, all they wanted was the proof of wages and P60. It surprised me, as I could accrue money in the ltd company bank account, which did actually help the business.

That was 3, nearly 4 years ago, perhaps things have changed....

Things are still the same. Stick the cash in the company bank account - live off tax credits

sammyjammy

Mwdn1956 wrote: »

Thanks for your help so far. I would anticipate only needing some help for a few months - as I certainly see income coming in shortly.

I would be surprised if the benefit system as as judgemental as galante suggests. Are you basing your reply on any experience or facts, galante?

Given this poster talks of Family tax credits that don't exist and the Benefits Agency which ceased to exist 12 years ago I would imagine its well meaning but uninformed.

shedboy94

Housing_Benefit_Officer wrote: »

The company is a separate entity. If self employed people want to claim maximum benefits then form a company and take minimal drawings.

If you are a director of a company, we treat you as an employee
and not self-employed.

If there is profit made then do you not have to pay dividends then? Surely this would be classed as deprivation of income?

Bestthing

Make your imaginary friend the shareholder (therefore owner) that way theres no chance hb will say it's yours. Do that next annual return and write your friend a stock tranfer form backdated. Plus you get job benefits like cheap swimming )