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Director of Non-Trading Company & HB


adridude
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Hi,

 

About 18 months ago I opened up a LLC which stopped trading 1 year after it was formed, but because there is debt which needs to be resolved I couldn't just close the company. Unfortunately the company made NO money and upon agreement with the people the business owed the debt to, they were happy for me to have the company struck off, which has already been applied for.

 

During those 18 months I was in receipt of Housing Benefit whilst not receiving a salary.

 

Throughout the 18 months, the Council were adiment that I was 'self employed' as opposed to being 'employed as a director' so they requested all of the company books, account statements as well as my own personal ones. I did this so I could remain transparent and show that I was being 100% honest with them.

 

Recently I received a letter from the council stating that ALL HB and CT has been stopped because:

 

Their letter reads:

Your claim for Housing & Council Tax benefit has been reassessed because your wages have changed. As your company has been trading for 18 months and you are still not showing as receiving any wages, it has been decided to use adverse inference, Therefore your claim has been based on you working 40 hours per week earning minimum wage.

 

1) I dont understand why they had to use 'adverse inference' as I have given them all of my bank statements, the companies bank statements, the company books (literally all of them) and did this every 3 months to ensure that I remained transparent.

 

2) How would advise that I contest this? I've provided more than enough evidence to show that the company has made no profit and that I have not drawn any salary.

 

3) They've backdated this claim to over 2 months ago! They paid rent directly to my letting agent... If I get warnings about 2 months arrears due to their fault, is there anything I can do on that front?

 

4) How do I drum it into them that I am NOT self employed, but rather employed as a Director of a Limited Company.

 

I've also shown that the only money I'm receiving is my working tax credit and DLA. I've also shown that alot of my personal money is put into the company (as it stands the company directors loan account stands at near to £1000) .

 

Some advice would be really helpful as I intend to face this head on and at full force to get it resolved.

 

Hope you can help!

 

Ade

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You need to appeal this decision.

Have a happy and prosperous 2013 by avoiiding Payday loans. If you are sent a private message directing you for advice or support with your issues to another website,this is your choice.Before you decide,consider the users here who have already offered help and support.

Advice offered by Martin3030 is not supported by any legal training or qualification.Members are advised to use the services of fully insured legal professionals when needed.

 

 

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Hi,

 

Thanks for replying. I will as soon as they re-open after the new-year.

 

What paperwork should I bring with me given that I've already provided everything from bank statements to company accounts. I even went as far as providing them with my paypal statement (which they asked me for).

 

What also concerns me is being 2 months behind on rent now. I haven't received any notifications from my letting agent, but things could go terribly wrong. On the off-chance that they do, can I hold the council liable for their erroneous decisions?

 

THanks,

 

Ade

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finally! found my password! lol.. Just to add to the above:

 

I've jsut been to the council to discuss this (and hand in my dispute), and they said:

 

1) Housing Benefits only pays up to 18 months to someone who works for themselves (despite me telling them I am a director).

2) My ONLY option is that I can dispute

 

Can I do anything about this? they've ONLY told me about this decision BACKDATING it to 2 months ago, putting me into a WHOLE load of debt.

 

Is this not classed as negligent as the LAST time I went there and gave them my 'paperwork' like statements etc... (which was about 5 months ago) there was NO mention of this happening?!?! Furthermore, 3 months BEFORE this alleged 18 months was up, they renewed my HB and CTB without making any mention. The dates they show are clearly until April 2013 with no mention of anything else.

 

Surely if there were concerns they should have called me in.

 

Finally there's nothing I can see which shows this 'mysterious' 18 month rule where they decide that 'I've had enough HB so they assume I'm earning minimum wage a @ 40/week'/

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I have.... I've been told that it'll take 10 working days for them to get back to me. In the meantime I've got my letting agent (which has an advice department for things like this) helping me so I should hear from them next week.

 

Don't you just love it when you get letters like this the day before christmas! eek!

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Appeal the decision, there is no 18 month time limit yet. With UC there will be limits and assumptions, but these certainly don't apply yet.

 

I was just wondering. Tomorrow (Wednesday) I'm going into the council to dispute this face to face (despite already having handed in a letter).

 

Any advice as to what I should say?

 

I know it sounds a little drastic going in every day, twice a day until this is resolved, but they've put me is a terrible, unannounced situation which I need to get resolved.

 

Is going there that often regarded as harassment? All I'm doing is constantly chasing this up as the last 2 months have been nothing but delays so I no longer trust them...

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I was just wondering. Tomorrow (Wednesday) I'm going into the council to dispute this face to face (despite already having handed in a letter).

 

Any advice as to what I should say?

 

I know it sounds a little drastic going in every day, twice a day until this is resolved, but they've put me is a terrible, unannounced situation which I need to get resolved.

 

Is going there that often regarded as harassment? All I'm doing is constantly chasing this up as the last 2 months have been nothing but delays so I no longer trust them...

 

My best advice is to get yourself a good benefits rep - a well worded letter referring to relevant regs with regards to your individual situation can often do wonders.

We hang the petty thieves and appoint the great ones to public office ~ Aesop

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Agree.

If you hand in anything further,make sure you get a receipt.

If you do speak to someone,it needs to be a supervisor-make sure you get a name in any event.

Have a happy and prosperous 2013 by avoiiding Payday loans. If you are sent a private message directing you for advice or support with your issues to another website,this is your choice.Before you decide,consider the users here who have already offered help and support.

Advice offered by Martin3030 is not supported by any legal training or qualification.Members are advised to use the services of fully insured legal professionals when needed.

 

 

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Hi,

 

THanks for that. I've been in touch with the CAB, which are working on it, as well as my letting agent (which are part of a social housing association). The latter have close ties with the local council, so I'm waiting for their advice at the minute too.

 

What complicates all of this is that I had another company registered which launched 'officially' yesterday, but I've had to put it on the backburner as it will create mayhem if I were to start working any hours on it.

 

In regards to a benefits rep, is this what you mean: http://www.kent.gov.uk/community_and_living/money_matters/your_money/benefits_and_support.aspx

 

The local council weirdly enough doesn't come under Kent County Council, it's an entity of their own.

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Hi,

 

THanks for that. I've been in touch with the CAB, which are working on it, as well as my letting agent (which are part of a social housing association). The latter have close ties with the local council, so I'm waiting for their advice at the minute too.

 

What complicates all of this is that I had another company registered which launched 'officially' yesterday, but I've had to put it on the backburner as it will create mayhem if I were to start working any hours on it.

 

In regards to a benefits rep, is this what you mean: http://www.kent.gov.uk/community_and_living/money_matters/your_money/benefits_and_support.aspx

 

The local council weirdly enough doesn't come under Kent County Council, it's an entity of their own.

 

Yes either CAB or welare rights can represent you - it's worth finding out which has the legal aid contract for your area, as this is an indication of who can handle more complex cases.

We hang the petty thieves and appoint the great ones to public office ~ Aesop

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Hi,

 

Thanks for the response. After looking at the gov.uk website, I found out that CAB is the only legal aid rep in the area. Luckily I managed to snag an appt with them tomorrow!

 

On another note, does anyone know of any cases where someone has taken a council to court over negligence? Reason I ask is because they could have told me at any point before this kicked off, but instead they decided to wait two months before telling me that they havent' paid rent to my landlord, throwing me in £1000 debt and a problematic situation where my tenancy is at risk.

 

Just to add, 2 months BEFORE they said that the benefits were stopped, they renewed my HB award without any mention of some '18 month limit'.

 

Cheers,

 

Adrian

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