Housing Benefit : How is income and capital worked out for Ltd companies?

Lionel_Itchie

NYM wrote: »

This is an example of a Housing Benefit claim form...

It might give you an idea of the information that may be required if you were applying as self employed.

Thanks, but the link doesn't work. I'll google it.

fishybusiness

They are all the same, perhaps your local authority has one online?

I started as a sole trader years ago, and filled one in every six months, no big deal really.

From memory, HMRC will allow things like capital purchases being an expense, LA won't. Caveat is that if you borrow the money for your capital purchase and pay back monthly, the payments can be classed as an expense. It's things like that, they may catch you out if unaware.

Lionel_Itchie

fishybusiness wrote: »

They are all the same, perhaps your local authority has one online?

I started as a sole trader years ago, and filled one in every six months, no big deal really.

From memory, HMRC will allow things like capital purchases being an expense, LA won't. Caveat is that if you borrow the money for your capital purchase and pay back monthly, the payments can be classed as an expense. It's things like that, they may catch you out if unaware.

What are capital purchases? Things like stock?

Lionel_Itchie

http:// web.gravesham.gov.uk/media/PDF/i/4/A_guide_for_the_Self-Employed.PDF

On page 7 it mentions expenses not allowed, but stock isn't there. Stock is allowed.

fishybusiness

Yes because stock is part of cost of sales, must be allowed, a business may need stock to trade.

Lionel_Itchie

fishybusiness wrote: »

Yes because stock is part of cost of sales, must be allowed, a business may need stock to trade.

That's a relief. When I looked at the list of stuff not allowed, it seemed pretty reasonable.

fishybusiness

Personally I find it very confusing.

To have to keep a tally of profit for the local authority, which is used to base payment of HB and CTR, and different set of numbers for HMRC, which is used to collect tax is numbers juggling exercise of gigantic proportions.

Also, to have to base early business decisons about purchases and expenses on two different systems, which can significantly affect income, and perhaps livlihood is quite difficult to navigate.

Lionel_Itchie

I would have thought they'd look at your list of expenses and just discount the ones that they don't consider legit for their purposes.

Lionel_Itchie

Quick off topic question (rather than starting a new thread). Do home based businesses in which you just use a computer in your living room or bedroom incur business rates?

FBaby

My line Manager said I had to accept his income was just £100 per month! I made sure I had that advice in writing and processed the claim.

Why did you have to ask your line manager? Is it because you didn't know all the legislation at the time, or is it because it was a case of someone in authority making the decision?

If it's the latter, isn't there a risk that another manager could advise differently and decide to investigate?