UC Directors CT (Council Tax) reductions

sez1231

Hi Please help,  I have been going backwards and forwards on this for months.  I am a director of my ltd company and claim UC.  Business is not great and I have a lot of debt which I am working my way through.  Therefore the MIF usually kicks in as I am not making a profit.   However, my council tax has now shot up.  The UC award is only the MIF amount.  I do however pay myself a salary of £520.  Council Tax are now saying I do not qualify for any help and have hit me with a years worth of CT to pay over 4 months.  Neither side are much help.  So my question is:  How do UC and CT work together?  Do CT take the MIF floor AND my salary of £520?  I have been told this is incorrect and the CT systems look as through I have another source of employment paying myself £520 (ie like an uber driver)  rather than paying myself from my own company.  Im wondering if I have been set up wrong.  Each side telling is  me to contact the other as it is all fed through their systems.  

Robbie64

You'd have to check with your council as each council is able to set its own rules for Council Tax Support / Reduction for working age claimants. Some councils more or less use all available income. Some also use income bands when assessing how much CTS a person gets. My council does both these and as a result, the scheme is less generous for people on UC compared to what it was for legacy benefits.

huckster

So you are a director and employee of your own company?

Does your UC statement show MIF for self employment and £520 as employee as the £520 is reported via HMRC?

The question is why are you reporting £520 to HMRC as employee of a company not making much money?

Can you simplify this, by stopping reporting the £520 as employee to HMRC?

Whoever helps you with your companies accounts should be contacted to find out whether you can stop reporting your employee earnings to HMRC. I don't know enough about accounting and HMRC rules to know whether this is possible.

I have seen quite a few self employed just reporting their self employed income and expenses, where they are not reporting any employee earnings for themselves via HMRC.