Tax Credits when Director of LTD company

delirious

Up until 2016 I have been in full time employment and also a director of a startup company. My wife is disabled and is also director of the same startup company.

When I lost my full time job in feb 2016, I rang up tax credits and advised them that I was now working full time for the ltd company and expecting a salary of £500 a month (this is being paid to a directors loan account as there’s no physics money available to pay me a wage yet). I told them my wife would be continuing to earn zero until the company could afford to pay her. All was fine and our tax credits was adjusted accordingly.

However, we have now received a letter stating that our claim has been selected for review and that there is no record of myself or my wife being employed by the limited company, but doesn’t state what they need from me. The letter does mention that the call centre staff can’t take the required information over the phone.

So, now I’m really confused and am worried that we are going to lose our only income in the coming weeks.

BoGoF

Is the company trading?
Turnover?

Darksparkle

If earning more than £490 per month you should be registered for paye.

PersianCatLady

delirious wrote: »

Up until 2016 I have been in full time employment and also a director of a startup company. My wife is disabled and is also director of the same startup company.

When I lost my full time job in feb 2016, I rang up tax credits and advised them that I was now working full time for the ltd company and expecting a salary of £500 a month (this is being paid to a directors loan account as there’s no physics money available to pay me a wage yet). I told them my wife would be continuing to earn zero until the company could afford to pay her. All was fine and our tax credits was adjusted accordingly.

However, we have now received a letter stating that our claim has been selected for review and that there is no record of myself or my wife being employed by the limited company, but doesn’t state what they need from me. The letter does mention that the call centre staff can’t take the required information over the phone.

So, now I’m really confused and am worried that we are going to lose our only income in the coming weeks.

Unless the company starts making money, this isn't going to be a reliable source of income long term.