Can directors claim benefits?

[BliarOut]

I suspect I already know the answer but if you don't ask you don't know.

I'm going to be paying myself circa £6K per year and living off my savings till I get the company up and running. As I'm officially poor can I claim working families tax credit etc?

I have enough put by to survive for a couple of years but as I've put a lot into the system I was wondering if I could get any of it back until the business starts paying me some healthy dividends.

[davidy]

Get your accountant to advise on the best route forward for personal tax benefits. A few ££ spent will be reap rewards and you can stop worrying about all these things and get on with concentrating on running the business.

Note that if you are paying significant money into personal pensions, then you cannot pay yourself a pittance saary and get all the benefits of tax-free pension contributions as your tax-free element is limited to a percentage of your salary.

davidy

Edited by davidy on Monday 27th November 09:35

[Carrera2]

Just don't let anyone know if you do - ' on benefits & owns a Porsche' will probably be enough to raise a lynch mob.

[BliarOut]

Carrera2 said:

Just don't let anyone know if you do - ' on benefits & owns a Porsche' will probably be enough to raise a lynch mob.

I could syndicate someone to sell the story to The Sun

The Porker is going, far too flash for what I'm doing now.

[deva link]

BliarOut said:

As I'm officially poor can I claim working families tax credit etc?

You don't have to be poor to get Working Families' Tax Credit - I forget the top line number, but families with incomes of something like £58K can still qualify.

I don't *think* being a director makes any difference - your exact employment status might though. For instance, it might make a difference if, rather than being an employee of a limited company (as most directors are) you are in fact self employed.

The thing to do is apply, be totally honest in your application, and see what happens.

Edited by deva link on Monday 27th November 13:04

[Eric Mc]

Self Employed indivuals are eligible for tax credits too. The main problem they have is that their income levels may not be ascertainable until well after the deadline dates for submitting the Tax Credit claim. The Tax Credit claim deadline is MUCH earlier than the normal tax Self Assessment deadline.