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Jamie-Law
Jamie-Law, Solicitor
Category: Law
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Experience:  Solicitor
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Do I need to declare the income of my ltd businesses as part

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Do I need to declare the income of my ltd businesses as part of my personal claim for Universal Credit and Council Tax Reduction
JA: Where are you? It matters because laws vary by location.
Customer: Scotland
JA: What steps have you taken so far?
Customer: I've declared that I have not paid myself from these companies as they are new businesses, the businesses are limited or not trading because of current events and family circumstances
JA: Anything else you want the Lawyer to know before I connect you?
Customer: I'm currently dealing with a fraud protection officer within the local council whos investigating this

Hello, my name is ***** ***** I will help you. I am just reviewing your question. Hopefully, we can get this resolved quickly.

The income of an Ltd business does not need to be declared.

But your shareholding does.

So if you own 100% of a business that has a profit of over £1m a year, for example - this affects the value of the asset.

The asset would be worth more if a higher income/profit.

But you do not need to declare the income, just the value of the Company and shareholding

Can I clarify anything for you about this today, please?

If you need anything further I am available for a follow up at no extra cost.

I was just following up to see if there is anything else I can assist you with today? If so, just let me know.

If not, then I am happy to have been able to assist you.

Customer: replied 22 days ago.
Hi, the Fraud Investigation Officer is requesting details of the businesses income as I am the sole director of all, and the sole shareholder, the confusion I belive has come from declaring ' I'm self employed by being a Director ' which seems to have led to the officer assuming I am in recipt of the businesses profits at this time
Customer: replied 22 days ago.
You’ve referenced (verbatim) -As to my understanding, businesses when limited are a separate legal entity.Please note this is not applicable to the subject of benefits and the entitlement to same. Simply by stating (verbatim)also my understanding that as the Director, I am not obliged or required to pay myself, which I'm choosing not to do so to maintain investment in the business, does not preclude the earnings made by the company you own and run being declared and in turn being factored into any assessment carried out as to your entitlement to benefits.

If you declared it and you were never asked what the income was, then you are not liable.

A Ltd co is a legal entity of its own right.

It never needs to declare a dividend. This would then just come down to the capital value of the business as an asset which would need to be declared.

Does that clarify?

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