can someone run a small business and claim IS /CTC.
E.g. if they take £90 on average per week from a number of orders can they put that through a small company and pay themselves £6 per hour for 15 hours
The actual work for those orders probably only takes 4-5 hours but that ignores a lot of the admin side required to get the orders in the first place... I'm sure there is a good case to be made that 15h work actually occurs.
obviously if this is possible then the benefits implications of this are several £k per year (at least until lunchtime today - afafter that who knows).
In brief yes you can run a business and claim IS and CTC, you would need to provide accounts for the business however they will disregard the 1st £20 of income afterwhich they will deduct it pound for pound from your benefit which means your earning might exceed your benefit and so they will not pay.
Ring your local Jobcentre Plus and ask them to do a Better Off Calculator to review your options