Housing Benefit & Company Director

[radmm0]

I hope someone can help with this query? Thanks.

 

Lost home 3 years ago and have been renting since.

 

 

I'm a limited Company Director.

Company has never made a profit in over 10 years.

Closed retail unit in 2011.

We tried every which way to avoid getting any benefits, but had no choice in the end.

 

 

applied & granted Housing Benefit in April this year (provided wife's PAYE details/payslips & 3 years worth of the Company Accounts for myself,

which they took copies of at the time of the application).

Company is still 'alive' and 'active' as far as the HMRC and Companies House are concerned.

 

The reason the company has been kept 'alive' is that my accountant suggested it would be the best approach

for getting some of my initial investment in the company back through the Director's Loan being in Credit,

i.e. the company owes me money, which can be obtained from the Company using HMRC guidelines on Director's Loans.

any 'income' is payable to me without being an 'income', as it's the Company entity owing me money.

 

 

This is the exact opposite of most enquiries and descriptions about Director's Loans,

which tend to be in Debit, i.e. the Director owes the Company money and has Tax & Benefit in Kind implications with the HMRC.

 

I have today received a letter from the council wanting me to confirm my 'income'

and if I have been 'earning' anything from my role as a Director of the Company.

My wife & I are concerned and would like to know if anyone can shed light on any of this?

 

My accountant states that:

 

1. Any funds coming in is effectively the Company earning the money, as it is a separate entity to me.

 

 

2. I'm working as the Director of the Company, but not earning anything as the Company is earning the money.

 

3. Any money used for personal costs from the Company account is being set against the huge Director’s Loan that the Company owes me.

 

will the council view my directorship of a limited company as a 'job' and the money I get back as 'income'?

 

What should I send them as evidence, since they already have the Company Accounts for the past 3 years?

 

Rgds.

radmm0

[Conniff]

Just confirm that you are taking 'no' drawings from the company ?

If this is so, where are the company profit now going ?

[radmm0]

Just confirm that you are taking 'no' drawings from the company ?

If this is so, where are the company profit now going ?

 

I confirm that I'm not taking 'any drawings' from the Company and that there are no 'profits', as the Company owes me loads. So, any funds that do come in are taken to repay the Director's Loan. Obviously at some point this will change, but that's a long way off, may be a couple of years!