self employed director

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  • #38294
    tracycox
    Participant

    Hi

    I have a case where the claimant is a self employed director of a limited company. As far as we can work out he doesn’t appear to have any staff – he is a market trader and also does some reiki healing and meditation.
    Basically as he is a director we should take his drawings as earnings – however he has stated that he is not taking any drawings from the company and has not since 2008 – his other income is wtc, a small pension and dla. He has supplied his accounts to us and for last year the company made a profit of just over £8000 which would have given him a weekly wage of £142.68.

    Are we able to include this as his income as it appears that he is depriving himself of this money by not taking a wage from the company and if so is there a regulation to back this up that i am able to quote to the customer.

    Thanks

    #107788
    Kay_Tade
    Participant

    [quote=tracycox]He has supplied his accounts to us and for last year the company made a profit of just over £8000 which would have given him a weekly wage of £142.68.[/quote]

    I think you can, unless he can show you how it’s tied into the everyday running of the business, so I would use the net profit as notional income.

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