Making myself redundant?

**pmeswani** · 5 February 2009, 18:38

Originally posted by MarkA View Post

I've not had a contract in over 6 months and unfortunately January hasn't shown any light at the end of the tunnel. I'm having to face that work has totally dried up and isn't likely to reappear anytime soon. So I'm wondering what sorts of benefits I can claim for. I always figured I couldn't claim anything because I'm actually still employed by my own firm of course. My accountant has suggested giving me a P45 so that I'm unemployed - but how does that affect my company and my ability to work again should I magically get a contract next week? Thanks for any advice/pointers.

Mark

Give up contracting. Disolve your business, get your P45, go down to the Job Centre, claim JSA, and try and see if you can get Income Support and any other benefits. Become another statistic and stay on the couch for another 12 to 18 months until things pick up and then apply for a permie role.

HTH.

**chris79** · 5 February 2009, 20:24

Why not go to the job centre and explain your situation and find out the official verdict? Maybe there is a way of doing it without having to close down the company, I'm sure they must have come across this situation before? Maybe if you can prove the company isn't turning over any money etc.

Also is it not the case you can give yourself a P45 from the company, but remain as the company director and just re-hire yourself once a contract comes in?

**Archangel** · 6 February 2009, 08:15

Originally posted by chris79 View Post

Why not go to the job centre and explain your situation and find out the official verdict? Maybe there is a way of doing it without having to close down the company, I'm sure they must have come across this situation before? Maybe if you can prove the company isn't turning over any money etc.

Also is it not the case you can give yourself a P45 from the company, but remain as the company director and just re-hire yourself once a contract comes in?

What the company is doing has no bearing on you personally. If you give yourself a P45 you are unemployed and can get job seekers allowance etc. No need to shut down the company. (if it pays you a divvie whilst you are unemployed this will effect any means tested benefits).

**VectraMan** · 6 February 2009, 09:02

I understood directors can get benefits and JSA etc., but for JSA you'll have to show that you're actively looking for work, which means applying permie jobs as well as contract. It's probably easier to get housing benefit and income support as long as you can prove you have no income from your business. I did wonder if I could use the system to pay the rent whilst working full time on my plan B - a little bit dishonest perhaps.

**Mart001** · 6 February 2009, 10:20

http://forums.contractoruk.com/accou...ort-you-4.html

yep you can claim JSA while still being a director and income support. speak to the job centre.

**Money Money Money** · 6 February 2009, 11:18

LINK

**Mart001** · 6 February 2009, 11:45

Originally posted by Money Money Money View Post

LINK

IR35 friendly?

**Svalbaard** · 7 February 2009, 11:49

When attending the Job Centre be prepared to struggle to get through the "computer says no" thickoes who man the desks there and demand to speak to a manager from the word go.

I was trying to find a story I saw on the Times.co.uk website about a senior executive who had a horror story when faced with having to sign on; and the lack of professionalism or candour shown by the child like staff at the centre.

**diesel** · 11 February 2009, 11:51

Originally posted by VectraMan View Post

I understood directors can get benefits and JSA etc., but for JSA you'll have to show that you're actively looking for work, which means applying permie jobs as well as contract. It's probably easier to get housing benefit and income support as long as you can prove you have no income from your business. I did wonder if I could use the system to pay the rent whilst working full time on my plan B - a little bit dishonest perhaps.

Are you sure i was in the position 2 years ago...job centre said i will get nothing apart from basic NI stamp as i was still a director of a Ltd Co. They said only way was to close company...

Making myself redundant?