May I make three suggestions
1. Add the question, ‘Are you a Company Director’ to your forms, especially the one for Self Employed
2. Identify all ‘nil income’ cases and scrutinise them
3. Ditto claims with Working Tax Credits but no income
BUT I do suggest that you go back through the documents clearly, I suggest that you may discover either that the authority should have realised that they were directors, OR I might argue that they should in fact have declared the fact that they were taking money out of the company and by declaring nil income on the claims they have misrepresented there situation and the claim should be revised/superseded
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.
Wilkins Micawber, Ch12 David Copperfield
