Benefits - my council requested full disclosure from my employer for my benefit claim

[peter_m]

Hi,
I have been applying for housing benefit with my co-habiting partner to my local council.
My partner is a full time POST GRADUATE student attending 2 days a week or less at a uni 300 miles away from home to which she is commuting. 100% attendance is not required and most of work required, students submit using the uni's on-line filing system.
The council send me a letter in which is assumed, that she does not live with me and requested to only put my name on the application. Reluctantly I did and I saved copies of council letters in case I will be investigated of benefit fraud. Nevertheless submition of all required documents had a very little result. On the 4 of Dec 2010 I was told that "yes we have all except your Dec pay slip" So the council bought some time for themselves as I do not know anybody who gets payslips and wages at the beginning of the month.
So in January I have submitted my Dec pay slip but what I was ask to bring? Januarys Pay slip. Now 3 months on the council demands from my employer to disclose:
- End of Year financial report,
- My employers bank statements (limited accounts not individuals)
Where do I stand. I've been getting those "ransom notes" from the council for months and my case is nowhere near to be considered.
I need advice and potentially help to be compensated as I am loosing it and no one can make any sense of it including citizen advice.
Also I have now been served with note from my landlord of seeking possession (15,Dec) and legal proceedings started on 17 Jan.

[bednobs]

i think jack the hat had it when she said (some posts ago) "I think your question has run its course, despite the willingness of ABers to help, the solution to your problem lies entirely within your own grasp"

[hc4361]

And you still refuse to state your job title, role within your company, or how many hours you work.

[bednobs]

if you are this evasive with the council, no wonder they are stalling

[peter_m]

Hi everone thank you for your comments.

to hc4361

Job title: Co Director
Role: management and growth etc
Hours: I work all hours.

I am not evading the council. Far from it, I was nothing but forward.
I just go by the rules. Like I have mentioned early do not live under Dictatorship, Laws do apply. I just want to be treated lawful. Why this information was nor required or relevant 3 months ago? Why suddenly it came to light now when under normal circumstances in 7-10 days I would have had decision yey or ney. Explain that.

[Barmaid]

As well as being a director, are you a shareholder in the company? How many other shareholders are there?

[cazzz1975]

what do you manage and grow? what does your company make?

[jackthehat]

I get the feeling that you are 'bigging up' your job.
How can you spend all your time working for a company that is NOT trading ?

Your council have probably decided that, on balance, they do not believe your circumstances are exactly as you are claiming, therefore they wish to see additional evidence before they are willing to process your claim.

Perhaps, if you have been drip-feeding them information as you have us, they have asked to see comprehensive details of your financial status ?

I'm glad that your council have decided not just to award you benefit on account of you being an awkward customer............you know what your choices are.
I suggest you make the correct one.

[peter_m]

Oh, one more item, what if my companies clients sue me for breaching the confidentiality clause and disposing ultimately their accounts which they might have reserve the right to keep confidential?
So in respect of the Law I would have to have written authorisation from members of the board of companies, that my company supplies the service to, to avoid 2 years prison sentence or fine or both. Now care to elaborate on this.

Simple benefit case is becoming a major undertaking that ultimately will result in me being sued for discoursing protected information.

Honestly I need an advice of a specialist in commercial law because I risk loads by disclosing such data and I honestly do not want to go to prison.

[EcclesCake]

Peter you have expressed here how your circumstances have changed - girlfriend living with you/not living with you; your employment status changing so it really isn't that surprising that the authorities are asking for updated information in line with your change in circumstances.

[EcclesCake]

I'm retreating to the sidelines, this is entertainment not enlightenment........

[peter_m]

Dear EcclesCake,

my employment status has not changed in 2 years. I am in full time employment since the beginning of 2009

Dear Barmaid,

I am the only share holder value £1 also published on companies house.

Dear cazzz1975

My company acts on behave of other companies trading goods and services.

Dear jackthehat
I wish I was buffing up my job but it is quite boring and tedious and the company IS trading to answer your question. There is just too little of that trade left.

[Barmaid]

Firstly, tell me exactly which sections of which acts you are referring to - the 458 reference I am aware of but there is no s240 in the CA1989. S240 in CA2002 refers to VAs.

Secondly, the disclosure to which you refer I suspect relates to disclosure of the company's internal business. It is for the protection of the members and shareholders, not for people with whom you have contracts.

Thirdly, the easiest thing in the world is to provide accounts - which should not show the names of individual companies. Your certified accounts should be in balance sheet/profit loss form. Individual contracts should not be named on them (if they are, any Tom Dick or Harry can still obtain a copy from CA on payment of the requisite fee).

Fourthly, my question on who are the shareholders is very important

Finally, people are genuinely trying to help you here, so less "attitude" might be in order. I appreciate you are upset, but "explain that" type answers are hardly going to engender a positive response.

[Chaffinch]

Peter, if you know ALL the answers, why ask the questions??

[Barmaid]

Your answer was not there when I started typing.

Right, that is the reason that they are asking, because your £1 share is capital which you own. Your balance/profit and loss account should give a rough value of each share (based on the capital value of the company). You are not being asked to disclose this as company director, but as the sole shareholder.

YOU own the company - you could have 400 directors but as the only shareholder, the Directors should act on your behalf. If the company accounts are in proper form, it should not disclose any of your contracts (if they are not in proper form, that is for your accountants to fix). In any event, you can redact anything that is subject to potential confidentiality (and this does not fall under the companies act, this falls on contracts between you).

Because you are the sole shareholder and one of the directors, the Council are taking the view that they can "lift the corporate veil". And in cases like this, they are entitled to ask - not because of your position as a director but as the shareholder in a private limited company with unquoted shares.

[peter_m]

Dear Barmaid

I am extreemly impressed with your knowledge and I thank you for your contribution. It could not be any clearer.
1 - it refers to CA 2006 Chapter 8
2 - internal business (or in this case company's bank statements)' may show companies making payments for goods and services but may not wish to advertise however will be induce on their balance sheet without mentioning the provider.
3 - I have no objections to that. Those are freely available and as you have correctly pointed out, may be purchased for a fee. The case here is I have no objections of doing this however the proper name for such document is "abbreviated accounts" that do apply to my company but not "audited accounts", the council demands, that are yet again irrelevant to my company as my company does not do anywhere near £1.8mln turnover thus no requirements are made to undergo an audit.
4 - I am the only shareholder of 1 share valued @ £1 also readily available on CH website.

I am deeply sorry if I have offended anybody in any way or form.
Please undersand that I am very frustrated and even the Citizen Advice did not know how to act so in light of the £500/mth they reffered me to a minium wage. So here it is:

IR35 - National Minimum Wage Issues
The National Minimum Wage legislation does not apply to directors of their own limited companies, unless there is a contract of employment with the company. This is very unlikely in the context of a one person company.

So I might be a bit edgy but wouldn't you be if people who are paid to help you know less than you or giving you wrong advice?

[bednobs]

has it ever occurred to you peter, that in fact you are wrong or have misunderstood. After all you are reading letters and complicated laws in your third language

[factor-fiction]

Have you considered closing the business down as it pays you so poorly that you need housing benefit? There must be other jobs available that pay more than £500 a month, and probably involve working less than you arew orking now

[Barmaid]

I would point out to the Council that you are required only to submit abbreviated accounts to CH and let them have a copy of those. Provide them with the bank statements (but redact any parts which may disclose sensitive information). I suspect the "sensitive information" will be payments in from clients - fine, redact their names. What the Council are looking at is

1) How much is this company worth? For instance, if it has significant assets and no significant liabilities and is liquid, their view may well be "sell" (remember if you have assets over a certain limit you do not qualify for HB and CTB).
2) They are also looking for payments out to YOU. In terms of dividends and, in your capacity as director, drawings.
3) I am slightly concerned about the fact that you have improperly filled in the form - whatever the reason may be. You need to make it clear that she cohabits with you (you may have said in an earlier post, but tbh, I lost the will to live reading all 70 odd posts).
4) If you can afford it, I would seek a conference with a solicitor who has expertise in this area. The absolute worst thing you can do is make incorrect disclosure (that WILL lead to criminal sanctions under benefits Law).
5) If possession proceedings are afoot, you would be advised to seek advice in any event. Your home is at risk.

[peter_m]

Well factor30 if only the recession wouldn't be the main factor here I would have been able to pay higher wages, if only. Still the business is surviving, just, but it does, and in better economic climate I would not worry about housing benefits. The company is only 2 y/old and this year I had planned to expand. Take loans on open an office and have 2 full time employees to handle the work load but my company had a rubbish 2010 and that made my plans are now berried well deep at the bottom of Due payments pile.

[bednobs]

but we ARE in a recession, so perhaps cut your losses?