Limited company director - UC pain

Mishomeister

Here is my situation:

I am a carer so bo minimum income floor applies.
There is money in the business account. That is a few thousand. This money came before I started claiming UC.

I was told today that my income for the Universal credit will be money coming in to the business account minus expenses and plus directors salary. 

What I can't get my head around of is if there is anyway for me to avoid having the UC thinking I earned more than I really have.

Eg. amount that came in to the business account this month is £400. Then I pay a salary of £1,000. With £600 coming from businesses savings. How do I make them not to decide that I earned £1,000 this month?

Yamor

They will use £1,000 for that month. However, you would then have a self-employed loss of £600 to carry forward to your next month.

sheramber

You and your Ltd company are two separate entities.

The company is a business which  paid you £1000 so You have an income of £1000. 

The business is down by £600. 

Yamor

Taking a salary from a limited company can be quite useful actually.
It can be used to smoothen out your income over time for UC purposes (which is particularly useful if you have a work allowance and have some months when your profit is below the work allowance).
It can also help to ensure that if the MIF applies, that you can at least generate a loss to carry forward if your profit was below the MIF.