LHA Wants me to set up a company financial plan in less than a week

[adridude]

Hi,

 

After my last company crashed and burned due to unforseen circumstances, and after much thought I've opened up another company. It was opened July 2012 but because I was still in the process of liquidating the previous one, I left it on the sheft as dormant with no books.

 

As soon as the old company was dissolved, I got started on doing the research to get the companies business plans etc... into place. Due to the nature of the business this is not an easy task.

 

Today a week ago I get a letter from the council stating that they want ALL of the companies financial details, which there are non of. Furthermore, they class me as 'self employed' despite being the sole director employed by my LLC.

 

Should they be asking about earnings of a LLC?

 

Furthermore, they tell me this morning, that they need a financial forecast for the next year WITHIN A WEEK.

 

How can I homestly sit down and prepare an entire business plan in a bleeding week? THere's ALOT of research to do, loads of companies to contact despite quite a few laws and regulations to look up before I can even think that far ahead.

 

I explained this, and she said she can give me a week extension (LOL). If I can't provide this information, then they will dock me for so many months HB and CT benefit OVERPAYMENT.

 

If I just bodge numbers together, this is pretty much fraudulent as they aren't true figures which I haven't yet researched. If I come up with estimates, and these differ from any one of the drafts of final plan, I can be done for fraud again.

 

What should I do about this? I'm at a loss... Luckily, I can cover the period from Oct '12 - April '13 with proper balance sheets from my old business. BUt in terms of this new business, i can't even fathom what my income or expend will be. Let alone what all of my investment applications will result in.

 

Any helps would be much appreciated

 

Thanks

 

Adrian

[adridude]

Just to add, the HMRC have confirmed my application for the company to be dormant while I plan it to confirm that no CT will be earned until I tell them I start trading.

 

Furthermore, I notice that the Local Council have asked me to fill in forms as if I were a SOLE trader i.e. 'self employed' which I'm not. I'm an employee of the new business in question which is being planned.

 

The term dormant by the HMRC doesn't apply to the actual company activity, it only apples to the trading activity. i.e. 'undergoing restructuring'.

 

Should I literally just send them a copy of the 'Dormant COmpany Acknowledgement' to show that I'm going about the correct manner in terms of the company financials? Other than that, I can't provide them with much else except for figures sucked out of my thumb :-/

[impecunious]

I was in a similar situation. I just completed "self-employment" form they sent me -- with NO INCOME, NOT TRADING - in the process of preparing stock, business plan, sales forecasting and cashflow projection. (All these figures are usually just plucked out of thin air anyway. Unless you have firm contracts in place, how can you realistically predict the future?) You can't give them what you don't have.

 

I just asked them to calculate my HB and CT reduction on NIL INCOME basis.

 

Don't end up running round like a headless chicken trying to squeeze the impossible into an incredibly short deadline. Even if you provided them with your dormant status document, they probably even wouldn't know what to do with it.

 

Pop into the council office and talk to them face to face. They might have a better idea then.

 

Good luck!!

 

 

Imp

[adridude]

*edit*

 

Despite my last 200 page essay I just typed up, I'll just do as you did. HB and CT benefit is a right. I'm not doing anything illegal nor devious and nor is there anything to show them but a cover letter stating:

 

Dear Sir/Madam,

Re: Your Ref 12345 Dated 1/2/33

Please find attached the form which you sent me, further more, please find 2 x copies of my bank statements from the last 2 calendar months. As you can see I have no other income other than that on my bank statement, my company is not trading and is currently in the process of finding contractors, contractees, investors and building relationships with possible business partners.

Until I have fulfilled these and other tasks involved with setting up a newly formed company, please regard my income as NIL and work out my benefits accordingly.

Regards,

Me 

[tokenfield]

 

Today a week ago I get a letter from the council stating that they want ALL of the companies financial details, which there are non of. Furthermore, they class me as 'self employed' despite being the sole director employed by my LLC.

 

Should they be asking about earnings of a LLC?

 

 

Thanks

 

Adrian

 

As you well know, a limited company has the same legal standing as a person. As such it should be treated as a totally separate legal entity.

You are simply an employee of that company as well as one of its 'Officers' responsible for its operation.

 

As such, no one has the right to investigate the affairs of your employer when you are making a personal benefit claim. Working for say Tesco, would you expect them to divulge company information when an employee makes a claim for say housing benefit?