In a bit of a panic … UC as a director
I’m a director of my own company incorporated November 2024. I’ve been receiving UC for about three years. Single parent. Two kids. One receives DLA, I get carers element.
I’ve always done bits from home and always reported every penny I’ve earned. However when I set up a LTD company and created a business bank account I thought it was a separate entity. I drew a wage from the business after about a year of trading, £500 per month. I reported that £500 per month as my income.
I was entirely unaware that I should have been reporting the business’ income and expenses, despite it being its own thing with its own bank account. Some months there is profit (over £1000) but I don’t personally touch that money and I couldn’t. The business needs it or it’ll sink. But apparently that should have been going towards my personal income??
I only discovered this two days ago after randomly googling whether I need to report a change to my circumstances as the £500 is now being paid via PAYE for the first time. Then I came across this director and analogous to a sole owner instance. I have not been reporting the entirety of my company’s income and expenses since its incorporation!! (The first year was a huge loss and barely traded but the second has picked up). I have an accountant. I’m absolutely terrified. I’ve contacted Citizens Advice who will be in touch but I’m not sure how long the wait is. Am I screwed?! I am a by-the-book goody two shoes and my ultimate aim is to get off benefits entirely but right now I need them to feed us and the correct reporting method means I’ll go without but if that’s how it is then of course I will.
Also, for about 8 months I had a business partner who owned 40% of the business so does that mean only 40% of that period counts as mine? Urgh I’m so scared