Does Unpaid Salary Owed Count Towards Your Income for HB??

heffa_lump

Basically do HB officers care about what I am actually getting paid into my account, or what my PAYE slip would say I am owed, and which should count towards my actual income?

tboo

You had answers on this thread



As you are a director then if the company doesn't pay you then you wlil have no income - the HB wll then be assessed on nil income.
You then inform the council when you do get a wage.

heffa_lump

Thank you for the reply, however that is not actually the situation I am asking about.

tboo

I suspect it would be like this
If you were a standard earner - not a director
then arrears of pay count as earnings for the period they relate to.

as you are a director and therefore classed as an employee then the above should apply.

Most directors would be on nil pay until they can afford to pay themselves and I haven't come across one that pays themselves arrears of pay.
Sorry
I would call the council.

fishybusiness

Surely, once you are paid through PAYE and the information is submitted through RTI, that money is yours.

If you do not actually receive it, then I assume it will go in to the DL account so that as you say it can be transferred to you once there is enough money in the business?

As the money has been submitted as income through the tax system, the HB system will pick that up.

Say if you do that for 12 months you could have a nice little packet of money waiting for you, that could be classed as an asset.

I think you need to have some detailed discussions with your HB office.

calcotti

I agree with fishy business. If you put the money through PAYE you have been paid it. If you do not actually take it then the amount due should be shown as a credit in a director’s loan account. You will of course have to pay any Ni and income tax that falls due.

For the purpose of means tested benefits you have received the money.

fishybusiness

Your £0 payslip scenario is a little different.

If your payslip shows £0 then that figure is submitted through RTI, and HB will see you as having no income.

Also, in this scenario there is no pay being held back in the business, using DL account because the payslip was zero.

There is no owed salary. As far as I understand salary can only be owed if it has been awarded as pay but not actually taken from the business. Payslips and RTI would have to show awarded pay.

As far as HB works, that would be in your favour as you can prove no income from the business - paylips at zero and RTI info will prove.

dippy3103

Is it income available on application?

calcotti

heffa_lump wrote: »

If I earn for example £500 a month (random figure), but this doesn't actually enter my account,

heffa_lump wrote: »

we have been advised to set up PAYE and set a salary which the company will owe us.

I cannot see how the above two statements are compatible with a payslip showing zero. What is the payslip actually going to say?

heffa_lump

fishybusiness wrote: »

Your £0 payslip scenario is a little different.

If your payslip shows £0 then that figure is submitted through RTI, and HB will see you as having no income.

Also, in this scenario there is no pay being held back in the business, using DL account because the payslip was zero.

There is no owed salary. As far as I understand salary can only be owed if it has been awarded as pay but not actually taken from the business. Payslips and RTI would have to show awarded pay.

As far as HB works, that would be in your favour as you can prove no income from the business - paylips at zero and RTI info will prove.

You are right, when I read it like this, I realize I must have been confused. I think I will contact an accountant to figure out what the best option is here, as it's clearly going over my head! Thank you so much for your help and explanations!