Benefits / Tax Breaks / Student Loan - When not earning but MD of Ltd Company

Rich33

I'm a bit confused of what sort of financial situation I'm going to be in soon, I will be leaving university at the end of May. For the next 12 - 18 months I will be unemployed but working on personal projects...

I wont actually be earning anything technically and wont be paid for my work. (I'm building a house for my parents)

I also have a Ltd company and this currently does not generate any revenue but the plan is to kick it off very soon and I hope to be generating a modest amount from that. (On-line self build resource/website) I will not be taking any PAYE income from this, it will all stay within the company and be re-invested.

I'm not so sure what will happen with Student Finance... do I have to do anything or will they just know not to take payments?

Also what will be the situation with any benefits/tax breaks... if any do apply? I obviously won't try to claim JSA as I am unavailable for work as I'm busy on other projects. But would I be entitled to anything based on me having no income what so ever?

Also does the amount of saving you have effect this, I have £21,000 currently.

Caz3121

can't think of anything, as you say you are not available for work so JSA would not apply but I doubt you would have qualified for any payment anyway, Contribution based requires 2 years NI contributions and income based is not payable with savings over £16k
Housing benefit etc also are not paid with that level of savings

Rich33

What if I was to spend say £10,000.00 on a car which I am thinking about doing. And If I was to be earning a very nominal £3000.00 a year based on a self employed basis (separate to Ltd company) would I then get income support?

baza52

not a chance unless your disabled or a single parent with a young child.

tomtontom

Rich33 wrote: »

What if I was to spend say £10,000.00 on a car which I am thinking about doing. And If I was to be earning a very nominal £3000.00 a year based on a self employed basis (separate to Ltd company) would I then get income support?

Spending money in order to claim benefits is generally not allowed, you would be treated as if you still have the money. Buying a low cost car may be permissible, a small runabout needed to help you find work, but you'd get that for a few thousand at most.

You do not fall into any of the eligible categories for IS.

tomtontom

In other posts you mention living with your girlfriend - her income will count towards any claim for benefits.

Rich33

tomtontom wrote: »

In other posts you mention living with your girlfriend - her income will count towards any claim for benefits.

I don't live with my girlfriend, I am at university I move out in May.

I will technically be moving back home... but actually I'm living in a caravan on a building site in Scotland for the next 12/18 months.

nannytone_2

arent your parents going to pay you, or at least support you while you build them a house?

tomtontom

Rich33 wrote: »

I don't live with my girlfriend, I am at university I move out in May.

I will technically be moving back home... but actually I'm living in a caravan on a building site in Scotland for the next 12/18 months.

Apologies, your plans have obviously changed in the last eight hours!

Rich33 wrote: »

I live in the North West :j

The plan is for me and my girlfriend (future wife... yes it's that serious haha) to buy a 50% share in a bungalow my dad owns that we haven't developed yet. Then we will live there and I will work on it full time renovating it, extending it etc.

So in 12 - 18 months I will give him £80,000 for a 50% share.

We spend another £10,000 each renovating it and I should come out with £25,000 profit on my 50% share from that deal. Hopefully it all goes to plan

I am very concerned about getting a mortgage though based on me being self employed/not earning a regular monthly income but if my girlfriend gets the graduate job she is going for we should be fine.

Jobseeeker

Who owns the caravan? Are you renting it privately?

It may be possible to claim housing benefit for this when your savings are below £16k. But obviously you can't just buy a car you have to spend them in the normal way

cbrown372

Father is paying him £12k?