Thanks for your response
If you have a NIL salary then this will cause issues as it would be asked why you continue to trade with no profits.
Then you wish to apply for working tax credits which has been made more watertight for company directors due to the fact that so many draw less money from the business then they could, just to maximise their tax credit claim.
SO, for any company director to succeed in a claim, they have to show that
1) They are drawing at least the minimum wage to match at least 16 hours a week - so they meet the remit of the minimum hours one has to work to make a claim and
2) Are deemed to be employed at a set rate of pay (whether per hour, per week, month or year
You are trying to make a contract fit, what will keep HMRC (tax credits) willing to consider a claim from you, and it doesn't work like that - either the employment contract reflects what actually takes place, or it does not.
You cannot draw up a contract to fit just the needs of HMRC, it has to be absolute in practice as well.
So the reality is
1) The business does not make much of a profit
2) Therefore you cannot draw up an employment contract to meet both the 16 hour remit and to meet the national minimum wage position
3) You cannot have an employment contract detailing a NIL wage
4) But without both of these conditions (a) earning enough to show you work 16 hours at a national minimum wage and (b) provide this through an employment contract that also is consistent within the PAYE to operate on the pay AND the profit and loss accounts - you will not have a valid claim.
Normally minimum wage does not apply to directors but you want to try and make a claim for tax credits, and without the extra evidence to support the fact you are not squirreling money away and have a solid position in your directorship with the company - this allows the tax credit office to consider a claim for tax credits.
My advise - close the limited company - trade as a sole trader - so that the true position is permitted. (what you earn less your expenses) and the fact you keep records detailing the hours you work - then you will have an easier time making a claim for tax credits - but a word of warning, if you do not start to make profits as time passes, HMRC will argue this is a hobby and not a business and then you will not have to declare the income,(less paperwork) but you are back to a NIL position again with income from a trade. So do consider this position.