Sorry to ask.. Ltd and Hb

BigAunty

To be clear, lone parents whose family property is up for sale are entitled to HB at a rental property elsewhere.

Also, AFAIK, those on certain types of benefits, including Income Support, are entitled to claim Support for Mortgage Interest on a property they own, too. Again, AFAIK, they don't have to occupy the property to claim SMI.

I am willing to be contradicted on this as its not my area of expertise, but I do believe it is fully legitimate for certain households to claim HB in full at a rental property elsewhere while claiming SMI on an empty property they own. I've certainly seen instances of this practice on this forum, though it has been queried whether this is legit or not. I don't know.

Housing Benefit Officer might know the true position.

fishybusiness

I am willing to be contradicted on this as its not my area of expertise, but I do believe it is fully legitimate for certain households to claim HB in full at a rental property elsewhere while claiming SMI on an empty property they own. I've certainly seen instances of this practice on this forum, though it has been queried whether this is legit or not. I don't know.

My partner did this after she left her ex. House went up for sale, took 18 months to sell, Local Council fully aware and HB was claimed until sale.

That would satisfy the current situation.

Selling the house will release capital which is due to the OP.

Moving that capital in to a ltd company will mean it is still owed to OP via Directors Loan Account, hence still owned, assuming OP has 100% ownership of ltd.


Back to OP's question...

http://www.legislation.gov.uk/uksi/2006/213/regulation/49/made

5(b) suggests capital will be taken in to account.

Rather than being deprivation of capital, which would is considered a negative action, it can be considered part of a business venture, which could then be called notional income.

The outcome may be the same, i.e loss of benefit, but all said the understanding of ltd's and benefits isn't what it ought to be.

teddysmum

tomtontom wrote: »

Excellent idea mummy. How about employing the pet dog as a cleaner, to minimise that income some more? The budgie as a handyman?

Seriously, a my husband knew someone who had his GSD as a director of his security company.


One of the tv local news companies did a film of the dog being taken to a board meeting, in a Rolls, driven by my husband.

[Deleted User]

Me too? Is it even possible? Doesn't the £16k savings look at equity in a house? Baffled.

Housing_Benefit_Officer

Blatant attempt at deprivation.

Poppie68

She has no shame in her blood fest, for a social worker I would personally expect more, I would certainly expect moral scruples at the very least.

BigAunty

dalo wrote: »

Me too? Is it even possible? Doesn't the £16k savings look at equity in a house? Baffled.

As per the previous posts on this topic, lone parents whose former family owner-occupied properties are up for sale are one of the few groups who are able to claim HB in a separate rental property. It's totally legitimate, as I'm sure Housing Benefit Officer can confirm.

I think its guaranteed for 6 months but can be extended if the property doesn't sell.

The only way I can see this change is if the government make changes in the future, based on their preferences for how Support for Mortgage Interest scheme should operate.

Typically SMI has been paid on an indefinite basis to certain benefit claimants who cannot pay their mortgage (its time limited for some types of claimant). One guy popped up on this forum to brag how he'd been claiming it for 13 years.

The govt would prefer that SMI becomes more time limited for all and is a loan secured on the property rather than funded as a benefit by tax payers. I don't know where they are in terms of implementing it, if its an actual policy or just being proposed, though.

I think the natural next step (based on the governments drive for self reliance and desire to cut the benefit bill) is to take this approach with HB claimants who own other properties and make the HB a loan which gets paid back when the family home is sold.

AFAIK, there are no plans to extend the SMI loan concept to HB. But if there were, then the OP would quickly find their equity quickly eroded due to the high level of benefits she receives - the equity would be wiped out in under a year on a loan, rather than benefit basis.

FBaby

I'm earning £50K net, but I want more disposable income, so am looking at how I can increase it the easiest way and think the way to go would be to stop paying any tax. Can you please tell me how I can do that? Of course, I still expect to use the NHS for free, my bins to be picked up every week and my kids to go to the local comprehensive school, but other tax payers can pay for this.

I look forward to reading all your suggestions.

fed_up_and_stressed

FBaby wrote: »

I'm earning £50K net, but I want more disposable income, so am looking at how I can increase it the easiest way and think the way to go would be to stop paying any tax. Can you please tell me how I can do that? Of course, I still expect to use the NHS for free, my bins to be picked up every week and my kids to go to the local comprehensive school, but other tax payers can pay for this.

I look forward to reading all your suggestions.

Well if you "waste" your wages on things like food where you eat it and have nothing to show for it at the end of the day bar a full tummy, i can understand why you have problems with disposable income :rotfl: You could start stealing from tesco ..however don't get caught :rotfl: How terrible people should be expected to use the money they get to sustain themselves ..shocking :rotfl:

BigAunty

SMI only pays the interest portion of a mortgage. It may have been the case that she was able to pay the repayment part from other sources of income, including her disability benefits, for example.

I just want to make clear that SMI has never paid off a mortgage directly in full.