Housing benefit closed 15 months ago, local authority demanding payment
hary_j
Posts: 19 Forumite
Hi all,
I have a dilemma i am currently in and would like some of your advice. Around 15 months ago i stopped my housing benefit claim and decided to move premises elsewhere, temporarily. Later around 2 months after, moved in with parents.
During my claim everything went fairly smoothly, application was processed and accepted. Prior and during then i owned my own LTD company (although it wasn't trading) and was also fully employed by an automotive main dealer. My salary was very low, hence i opted in for a housing claim, where i found a premises and the local authority paid us accordingly for our living.
Around 6 months later i left the employment and became unemployed from there. I still didn't carry out any trading nor did i start to take wages from my company.
When i contacted the the local authority to explain to them that i am now unemployed they then started to look in further. They explained to me that because i am a director of a business, i was not able to claim any further and any past claim i had put in, i am now liable to make reimbursements to them for this, owing the full amount given.
I then had a letter from them demanding evidence, should i say i am not liable, i need to explain this. A letter was then written to them from me, explaining my employment term as an employee which was throughout the duration of my claim and also evidence showing my company was not trading and i was NOT seeking any profits or paid employment from it, during the course. i since did not receive any response.
I am now bombarded with letters after one whole year, demanding the fully payment just over £4000.00 and apparently they have tried to get hold of me at my old address, despite having my contact number and email, and only now found me from the electoral register.
They have gone down to the routes by explaining should i not pay the fully amount, they will start to deduct money from my employer (currently my own business, which is now trading).
I briefly went to see a solicitor who in return suggests, wait for them to issue court proceedings and we can then act, and in the mean time seek advice from citizens advice, as this is not a criminal case.
Thanks for taking time to read this, i shall look forward to some of your inputs.:cool:
Regards,
Hary
I have a dilemma i am currently in and would like some of your advice. Around 15 months ago i stopped my housing benefit claim and decided to move premises elsewhere, temporarily. Later around 2 months after, moved in with parents.
During my claim everything went fairly smoothly, application was processed and accepted. Prior and during then i owned my own LTD company (although it wasn't trading) and was also fully employed by an automotive main dealer. My salary was very low, hence i opted in for a housing claim, where i found a premises and the local authority paid us accordingly for our living.
Around 6 months later i left the employment and became unemployed from there. I still didn't carry out any trading nor did i start to take wages from my company.
When i contacted the the local authority to explain to them that i am now unemployed they then started to look in further. They explained to me that because i am a director of a business, i was not able to claim any further and any past claim i had put in, i am now liable to make reimbursements to them for this, owing the full amount given.
I then had a letter from them demanding evidence, should i say i am not liable, i need to explain this. A letter was then written to them from me, explaining my employment term as an employee which was throughout the duration of my claim and also evidence showing my company was not trading and i was NOT seeking any profits or paid employment from it, during the course. i since did not receive any response.
I am now bombarded with letters after one whole year, demanding the fully payment just over £4000.00 and apparently they have tried to get hold of me at my old address, despite having my contact number and email, and only now found me from the electoral register.
They have gone down to the routes by explaining should i not pay the fully amount, they will start to deduct money from my employer (currently my own business, which is now trading).
I briefly went to see a solicitor who in return suggests, wait for them to issue court proceedings and we can then act, and in the mean time seek advice from citizens advice, as this is not a criminal case.
Thanks for taking time to read this, i shall look forward to some of your inputs.:cool:
Regards,
Hary
0
Comments
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Could it be that they use a notional income for your limited company. It may not be trading but if it hasn't been changed to a dormant company then its live.
The notional income from the company plus your PAYE may have taken you over the HB threshold.
I understand that HB & company directors can be a messy business when it comes to benefits.0 -
The thing is that, when i initially put the claim in, they asked if i was seeking income from other sources, which typically they do and i obviously wasn't. I understand what you mean about being a director and claiming HB is rather messy. My business is relatively small, 1 man company, purely ran by me, but in their eyes i'm some major corporate who's earned thousands!
In terms of seeking advice, anyone i can turn to for legal help, i'm not entitled to any legal aid whatsoever. Therefore i understand this can have some costs
They also aren't pursuing any type of criminal case against me, nor are they saying I've committed fraud, the solicitor i last spoke to even asked me if they called me in for an interview with a local police officer accompanying, i told them no, nothing like that.
Simply asking for their money back!0 -
Have you sought advice from Citizens Advice?0
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Your ltd - did/ does it have assets and/ or money in the bank?0
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As a former Housing Benefit Officer (27 years) the worst thing you can do is do nothing and wait for court action.
What documentary evidence do you have to show your business wasn't trading?
Do you have accounts? Did you wind up the company? Do you have separate bank accounts for the business? Do you have tax returns? I assume as you have run a business you have documentary evidence of any trading or non trading for HMRC.
Looks like they cancelled your claim because you failed to provide any documentary evidence they required.
The sooner you can untangle this mess the better.I enjoy flower arranging, kittens, devil worship, the study of serial killers and their methods and road kill jigsaws.0 -
pmlindyloo wrote: »Have you sought advice from Citizens Advice?
My local one, If only they ever answered their phone's and they don't have a walk in service neither0 -
fishybusiness wrote: »Your ltd - did/ does it have assets and/ or money in the bank?
At the time it had near enough zero in the account and no ownership of assets.0 -
Afraid_of_Kittens wrote: »As a former Housing Benefit Officer (27 years) the worst thing you can do is do nothing and wait for court action.
What documentary evidence do you have to show your business wasn't trading?
Do you have accounts? Did you wind up the company? Do you have separate bank accounts for the business? Do you have tax returns? I assume as you have run a business you have documentary evidence of any trading or non trading for HMRC.
Looks like they cancelled your claim because you failed to provide any documentary evidence they required.
The sooner you can untangle this mess the better.
They demanded balance sheets, but that i was only able to produce for the previous year. and not the year in question. The business had it's own separate bank account.
The businesses non-trading status can be backed up by my appointed accountant.
I do want to deal with this before it reaches the courts, unfortunately i don't know how to address my representation to them as they don't acknowledge any of my letters i have written :mad:0 -
At the time it had near enough zero in the account and no ownership of assets.
So you can knock notional income off the list.They explained to me that because i am a director of a business, i was not able to claim any further
Totally incorrect. However that has come across to you, or been explained to you, directors can and do claim HB.
As I understand it local authorities can access HMRC and request income data within a few days, so it is easy for the LA to access actual income data.
Going back to AoK's post, best thing you can do is write to the LA, start with your circumstances at the beginning of your HB claim, income, income streams, provide evidence including ltd numbers/ accounts of ltd co, and status ie non trading, dormant etc evidence, right up until the claim was stopped.
LA must have basis for their action, even if it is incorrect, not sure but are you able to request access to their data?
You also have a right to complain and request your claim be looked at again, I'm not sure at what point you would do this.0 -
Hi all,
I have a dilemma i am currently in and would like some of your advice. Around 15 months ago i stopped my housing benefit claim and decided to move premises elsewhere, temporarily. Later around 2 months after, moved in with parents.
During my claim everything went fairly smoothly, application was processed and accepted. Prior and during then i owned my own LTD company (although it wasn't trading) and was also fully employed by an automotive main dealer. My salary was very low, hence i opted in for a housing claim, where i found a premises and the local authority paid us accordingly for our living.
Around 6 months later i left the employment and became unemployed from there. I still didn't carry out any trading nor did i start to take wages from my company.
The LA may have used an Income Floor level to give you an income
If you didn't have any income what was you living off?
When i contacted the the local authority to explain to them that i am now unemployed they then started to look in further. They explained to me that because i am a director of a business, i was not able to claim any further and any past claim i had put in, i am now liable to make reimbursements to them for this, owing the full amount given. as said this is incorrect - you are employed by the ltd company so pay wages to yourself
I then had a letter from them demanding evidence, should i say i am not liable, i need to explain this. A letter was then written to them from me, explaining my employment term as an employee which was throughout the duration of my claim and also evidence showing my company was not trading and i was NOT seeking any profits or paid employment from it, during the course. i since did not receive any response. Why was you not trading? Did you show them your business plan? did they ask for projected income for 13 weeks?
I am now bombarded with letters after one whole year, demanding the fully payment just over £4000.00 and apparently they have tried to get hold of me at my old address, despite having my contact number and email, and only now found me from the electoral register.
They have gone down to the routes by explaining should i not pay the fully amount, they will start to deduct money from my employer (currently my own business, which is now trading).
I briefly went to see a solicitor who in return suggests, wait for them to issue court proceedings and we can then act, and in the mean time seek advice from citizens advice, as this is not a criminal case.
Thanks for taking time to read this, i shall look forward to some of your inputs.:cool:
Regards,
Hary
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