How much information can they ask for?

benniebert

NYM wrote: »

:doh: you are so exasperating...

NO income tax is due unless salary drawn is above the personal allowance. Your statement that a Director will be liable to income tax at the same rate is incorrect.

Thank you for 'marking my work' though.

Basic Rate of Income Tax is 20%


Corporation Tax will be 20%


The assumption made was that the wages/salary already drawn exceeded the personal allowance. Hence the choice is to pay CT or IT - both of which are at the same rate level.


But the best advice is to not have additional remuneration voted and placed in the loan account, but to have it as retained profit. That way the money still belongs to the company using the argument that the reserves may/are to be used by the company in the future.

Braman

Seems strange that the title 'Director' automatically conjures up pictures of Bentleys and Rolex Oysters in some peoples minds... Maybe even a safe full of cash behind a picture on the wall.

Not the case here I'm afraid!

A couple of years ago, bad luck, ill health, (blah, blah, blah, ...sob story cut short) saw me end up on JSA (first claim after 32 working years)
Soon as I could I went on the NEA scheme (still paying back that £1k loan!)

Had the light-bulb idea and set up a limited company with the wife. Soon needed bigger premises, better equipment, more materials...
I don't know if it's the norm, but we found getting loans for the company to be so ridiculously easy, that instead of the £2K machine that'd 'do the job' we bought the 'all singing dancing whistles and bells' model for £5k. Instead of a few hundred items of stock we bought thousands...etc! Maybe not the best business practice, but it's done.

Like many start ups it's been a roller coaster ride, but not quite as fun.
So, we turned to the LA for short term help and were pretty gobsmaked at their attitude towards us. The intrusive nature of their questions, their ignorance, their demands for documentation that even HMRC don't require! Hence my original post. I wondered what powers they actually had.

Our client base is growing, and a couple of loans will be paid off in the next few months.
We estimate that in six months time we'll be able start drawing a wage from the business and stick two fingers up to benefits forever.

Just though I'd clarify our situation.

Londonsu

benniebert wrote: »

I personally can't see what the fuss is all about on this subject. If you are able to legally manipulate your income/capital in this way, why not do it? At least you are working and not claiming out of work benefits - you are trying to improve your future. Every little bit of help is needed. For those that decide to make a life out of living off the state for example, retiring at 63 and claiming Pension Credit instead of being productive is a far worse crime to my way of thinking.
And before anybody shoots me down or attempts to, I worked as a self employed consultant from 60 (when I retired) to 65 whilst claiming ESA with a Pension Credit top up.

What the @@@@@ are you talking about? When both my husband and myself lost our jobs year before last my Husband could have claimed PC which would have covered both of us, as he was 64 at the time however by that time he had paid in for 44 years, are you seriously suggesting that someone paying in for 44 years and claiming PC for ONE year would have made LIFE out of living off the state.

Podge52

The reality is op that if you wish to claim anything from the government be you a company director or a checkout operative from tesco they need to make sure that you need the help you are asking for. Nothing unreasonable in that.

Janetta

Sorry dont know how to post new to this .. I gave them everything Hello can anyone advise, I am exhausted trying to get an answer
I recieved HB CT for the housing association property. I also own a property which is up for sale. ( which I have to sell in 26 weeks and of which i also have to pay council tax after 12 weeks from the date in which i first recieved CT on the housing association property) i am literally giving the house away and accruing debt each month as the mortgage is not being paid - I get PIP and ESA income related.
Can I rent the property out at a loss - the mortgage payments are £800 per month with the estate agent saying he could rent it at below the price for £650-700. ( mortgage high due to arrears ... Would I loose my esa ? Housing benefit and council tax - i have provided all paperwork in which I am trying to sell it . What are the rules for renting, can I rent if monies go straight to mortgage company? No profit is made on the rent. Help please and thank

poppasmurf_bewdley

I don't think they pay out Housing Benefit and CT Benefit to people who are renting out their own home.

FBaby

Property experts will say that there are no property that can't be sold at the right price. If yours is not selling, it is because the price is still too high. You can't claim HB when you own a property that isn't for sale. Unfortunately, you will need to sell.

konark

Janetta. Even if you rent the property out for a loss you will still be deemed to have capital (property value minus mortgage) and will not qualify for means -tested benefits other than CB, CTC and WTC. Why don't you live in the house, you are trying to sell, then it will be disregarded and you won't have to claim HB