LTD and getting UC

Denny54

I am currently receiving UC and if i open a LTD company will this affect my benefits?

I will not be getting a wage from the company and others will be working.

marcia_

Denny54 said:

I am currently receiving UC and if i open a LTD company will this affect my benefits?

I will not be getting a wage from the company and others will be working.

 You will be classed as self employed. Why would you not be taking a wage? 

huckster

You would have to report change on your UC under work and earnings to confirm self employment as the change. Then attend a Gateway intervention appointment to verify self-employment information.  Then report business income and expenses at the end of each UC assessment period, with UC taking into account net profit. Depending on the outcome of the gateway intervention appointment, a minimum income floor may be applied based on minimum wage earnings for hours you are available for work.

poppy12345

In a previous thread you mentioned being a director of another company, are UC aware of this? See thread. https://forums.moneysavingexpert.com/discussion/6557349/company-debts#latest

TimeLord1

Do you buy items in the UK to export to another country?

Denny54

marcia_ said:

Denny54 said:

I am currently receiving UC and if i open a LTD company will this affect my benefits?

I will not be getting a wage from the company and others will be working.

 You will be classed as self employed. Why would you not be taking a wage? 

Because other people will be working and not me

Denny54

TimeLord1 said:

Do you buy items in the UK to export to another country?

No we dont

noitsnotme

Denny54 said:

marcia_ said:

Denny54 said:

I am currently receiving UC and if i open a LTD company will this affect my benefits?

I will not be getting a wage from the company and others will be working.

 You will be classed as self employed. Why would you not be taking a wage? 

Because other people will be working and not me

Do you actually need to be a director then?  If you won't be doing any work for the company are you just a shareholder?  What would your percentage share be?

Caz3121

Denny54 said:

marcia_ said:

Denny54 said:

I am currently receiving UC and if i open a LTD company will this affect my benefits?

I will not be getting a wage from the company and others will be working.

 You will be classed as self employed. Why would you not be taking a wage? 

Because other people will be working and not me

will you be the sole owner of the company?
as earlier post you will report the income and expenses of the company on a monthly basis and the net profit is considered your income (whether you chose to take it or leave it in the business)

NedS

Denny54 said:

marcia_ said:

Denny54 said:

I am currently receiving UC and if i open a LTD company will this affect my benefits?

I will not be getting a wage from the company and others will be working.

 You will be classed as self employed. Why would you not be taking a wage? 

Because other people will be working and not me

That's great.

As others have said, you must declare that you are self employed as the director of a limited company, and any profit the company makes after paying the wages of those doing the work will be considered your income for UC purposes.

Hopefully your company is successful enough such that you no longer need to claim means-tested benefits and are able to support yourself.