Self Employed - Working Tax Credits would I qualify with a Limited Company?

[Rob001]

Hello, I hope someone can help me. I have a long term illness and have been on Incapacity and then ESA for about 14 years. My parents run a small company and my condition might be improved enough in a year or two that I would be able to take it over as I could work from home, lie down when needed, would have minimal stress and wouldn’t need to travel. If, and when, my condition improves I will still not be able to undertake 'normal' work, well I might be able to for a short while, but then I'd exacerbate the condition and go back to square one again and onto ESA which I would not want. Going back to the company, even though my parents firm’s turnover is less than the requirement to be VAT registered, they have it registered anyway to make the business appear larger than it is to attract more sales and business.

So my question is, if I took this business over, would I be able to claim working tax credits even if I was VAT registered and classed as an employee, even though I would in all other respects be self employed and taking drawings rather then getting paid by PAYE?

I thought I read somewhere on a government site that I would be able to get WTC even if I was running a VAT registered business, but now I cant seem to find the same webpage again which is frustrating. I rang up the WTC helpline and the woman didn’t seem to think I could, but this contradicts what I saw online, but now I'm not so sure, although she could have been wrong and she didn’t sound to sure of herself. If it turns out I couldn't get working tax credits, would I qualify for any other benefit do think?

Hope someone can help
Kind regards
Rob
:beagle:

[des8]

Re: Self Employed - Working Tax Credits would I qualify with a Limited Company?

Hi and Welcome.
There is no reason for not receiving WTC if you are self employed as long as the work is regular and carried out in expectation of realising a profit.
Is this the website you were looking for? http://www.revenuebenefits.org.uk/ta.../wtc-elements/

If you class your self as an employee of the company assuming you are single and aged between 25 & 60, you will need to work 30 hours per week earning at least the minimum wage

[des8]

Re: Self Employed - Working Tax Credits would I qualify with a Limited Company?

If you are a Director of the company I think the optimum amount to pay yourself as salary to maximise WTC and corporation tax is about £6500 (but I'm not involved in that now so figures could be out!)

[Rob001]

Re: Self Employed - Working Tax Credits would I qualify with a Limited Company?

Okay thanks guys for your help. Think i'll need to look into this in a bit more detail.

If you are a Director of the company I think the optimum amount to pay yourself as salary to maximise WTC and corporation tax is about £6500 (but I'm not involved in that now so figures could be out!)