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Own a Ltd - Entitled to benefits?
GeorgeBH
Posts: 3 Newbie
I am 18 and recently setup a limited company, and I am the only shareholder, the business is not yet making a profit, so I am not taking any money from it. I am not employeed by the company, but was thinking of paying myself a small wage of say £300/Month.
Im currently living with parents, but ideally need to move away for the business to take off and am looking at renting a flat. If I make myself an employee of the company, can I claim housing benefit, council tax benefit and even tax credit?
Im currently living with parents, but ideally need to move away for the business to take off and am looking at renting a flat. If I make myself an employee of the company, can I claim housing benefit, council tax benefit and even tax credit?
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Ive just read you have to be 25 or over to be entitled to working tax credit or to have kids, so I wont qualify for that, but will I still be entitled to housing benefit/council tax credit?0
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hi georgebhGeorgeBH wrote:Ive just read you have to be 25 or over to be entitled to working tax credit or to have kids, so I wont qualify for that, but will I still be entitled to housing benefit/council tax credit?
the local tax office said that the 25 age limit thing is because in the Gov't eyes anyone under that age is still a trainee, whether you're running your own department or even company or not![:\](https://forums.moneysavingexpert.com/resources/emoji/confused.png ":\")
I was just wondering George, who did you form your company with, and will you be doing your own bookkeeping, or using one of those all in one packages some accounting companies offer (where they form the company with your registered office as them and manage your books), just I'm with a view to turn my freelancing into a ltd enterprise (I'm 21 myself), but the book keeping concerns me and just wondered how you were planning for this?0 -
As owner of the company you are classed as 'self-employed', for tax and benefit purposes, even if you become an 'employee' of the company and pay yourself a wage. Normal rules re tax and benefits for someone of your age, who is self employed, will apply. This will probably mean producing documetary evidence of the companies finances. That is, if you are eligible in the first place on age grounds. I suggest you seek advice from CAB - they are very good at sorting out benefit entitlement.I'm a retired employment solicitor. Hopefully some of my comments might be useful, but they are only my opinion and not intended as legal advice.0
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