Limited company and housing benefit

Company director with cash in business account

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I started limited company last year and Woking as a IT contractor and due to pandemic there is not much work available atm. I am a sole director and take around £450 a month in wages to myself as paye. I have few questions which I want to to Clarify. I am claiming housing benefit at the moment and don’t have much savings in my personal account but my company do have some cash capital available around £8k. Would it consider as a available cash savings in terms of personal use or as suggested that cash available in business does not class as savings ? Please advice

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By SXGuy
02nd Jan 2021 08:28

If the 8k is retained earnings, as in after all liabilities etc then yes it probably would be classed as savings in the eyes of housing benefit because your (I'm guessing) a sole director which they would probably view the same as someone self employed.

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By paul.benny
02nd Jan 2021 08:45

Take a look at the advice at Citizens Advice
https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/housi...

Universal Credit has replaced housing benefit for most people. The savings threshold for UC is £6,000, above which, your UC entitlement tapers.

I would suggest that you apply for UC without delay. You may well have to complete a supplementary questionnaire about your company and its finances as part of your claim.

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By Matrix
02nd Jan 2021 09:20

If you have deprived yourself of savings or capital to claim a benefit then these could be added back when calculating a claim.

https://www.entitledto.co.uk/help/Deprivation-of-savings-and-other-capit...

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By carnmores
02nd Jan 2021 13:01

you may want to try www.taxaid.org.uk

Nick

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By SteveHa
02nd Jan 2021 15:08

But, being a director is of no consequence one way or the other. OP, are you also the sole shareholder?

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Replying to SteveHa:
ALISK
By atleastisoundknowledgable...
02nd Jan 2021 18:20

SteveHa wrote:

But, being a director is of no consequence one way or the other. OP, are you also the sole shareholder?

Yes, worth asking the question, just incase...

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Replying to atleastisoundknowledgable...:
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By Chacha82
03rd Jan 2021 02:04

atleastisoundknowledgable... wrote:

SteveHa wrote:

But, being a director is of no consequence one way or the other. OP, are you also the sole shareholder?

Yes, worth asking the question, just incase...

Yes I am

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