UC and Directorship

Ske100

Hi, I’m hoping you guys can help. I work part time (25hrs) and I’m currently a director of a small Ltd company with 50% share. I am home owner and single parent to a toddler. Toddler goes to nursery using the 30 free hours and claiming 85% costs back.

I take no money from the business, no dividends or wage. Our end of ear accounts showed us as insolvent. UC have asked for the income and expenses of the business (which they don’t clearly ask for in the beginning). Anyway what I’m struggling with is that I take nothing, earn a small wage from employment, yet I’m having deductions of UC for nothing gained?

My question is, if I resign from my director position will that be enough to make me financially better off in terms of UC? We are literally running the business down with the end result to close as it sadly no longer makes viable sense to carry on.

Yamor

UC will often agree to ignore the business if you are no longer a director, although technically it should depend more on whether you are still a shareholder or not.