Claiming benefits whilst on the bench

[VectraMan]

NB: 'laid off' is not the same as sacked or redundant; you remain on the payroll but receive no pay and do no work. It is accepted by both the company and the employee that if the company manages to find a clustomer, the employee will return to work. A contractor signing has been 'laid off by their employer'. While 'laid off' you can sign on and receive benefits provided you seek work from an alternative employer. The Job Centre accepts that spending your time seeking work for your employer so your employer can pay you is a valid use of your time and worthy of receiving Job Seeker's Allowance.

You may have a point, but the difference is an employee who is laid off has no choice in the matter, whereas us as directors make a choice in laying ourselves off. And as contractors, spending time on the bench is a normal part of what we do. If it's okay for a contractor to sign on because he doesn't currently have any work to do, depsite the company doing well long term, then does that mean chairman of M&S (whose name I forget) should sign on because he has no board meetings for that week?

I've planned things so that the company money gets me at least to the end of the company year (end of Jan). I felt that it was important that in any year where I've paid dividends out of profit, that I should keep paying a salary. It's not really a profitable year if you have to stop paying salaries because you've run out of money. After that I'm not so sure.

Maybe none of this makes any difference. And there's always the argument that having paid tax for years we should all take as much as we can get in benefits.

[MPwannadecentincome]

It might be worthwhile double-checking with them over that one. They count "savings and investments" and include things you can easily liquidate - but you can argue you cannot sell ¼ of your parent's home. But I may be wrong.

yeah thanks I will check but knowing my luck I'm not that hopeful, but....

I have found the Jobseeker’s Allowance Regulations 1996 108(2) “There shall be disregarded from the calculation of a claimant’s capital under paragraph (1) any capital, where applicable, specified in Schedule 8.”, where Schedule 8 item 10 mentions "Any future interest in property of any kind...".

Turns out that 'future interest' is a special legal term, I had better make sure this is upto date and I might have to get legal advice.

[MPwannadecentincome]

Turns out that 'future interest' is a special legal term, I had better make sure this is upto date and I might have to get legal advice.

I don't have to worry - phew - my name is not on the title deeds.

[northernrampage]

Hi
If on the bench, presumably you wouldn't pay yourself a salary.
Could you therefore sack yourself from your limited company, declare yourself unemployed, and claim benefits?
I found an interesting website
http://entitledto.co.uk/

mine works out as:-
Means-tested income entitlements
JSA £4,917.07 £94.30 JSA (income-based).
Means-tested bill reductions
Council Tax Benefit £999.57 £19.17 You should not have to pay Council Tax as you qualify for full Council Tax Benefit.
Total Entitlements £5,916.64 £113.47 weekly

not bad huh?
why aren't YOU claiming when you're on the bench?

Isn't the £94.30 for a couple? I'm on £64 something as a single person, I got quoted the 94.30 when I was considering having my now-ex partner live with me.

So your benefit if you're on your own is the 64, plus your council tax (and housing benefit if you have savings under a certain amount and rent a property).

It's still worth doing, but it's not 94.30 just to you.

[AlfredJPruffock]

Interesting to note that during the last downturn most contractors were relucatant to seek any state assistance as they seemed to view themselves as enterprenuerial types therefore would not be seen dead near a Dole Office.

This time around there seems to be not compunction whatsoever (quite correct in my view) is this due to the length fo the turndown - or the cavalier attitude of the Bankers fleecing the public purse - or perhaps the New Ice Age - (that would make it the eighth Ice Age ) - anyway leaving the apocalypse aside - any thoughts from the panel?

[lje]

Isn't the £94.30 for a couple? I'm on £64 something as a single person, I got quoted the 94.30 when I was considering having my now-ex partner live with me.

It all depends...

If you are on income based JSA then it's something like £94 for a couple and £64 for a single person. However, if you can get contributary JSA then for you would get another £64 for an individual. Contributary JSA doesn't get reduced for a couple so you would each get the £64 every week.

To get contributary JSA it doesn't matter how much you have in savings but you need to have been paying national insurance of the last couple of years. Also, it only lasts for 6 months.

[RichardCranium]

Interesting to note that during the last downturn most contractors were reluctant to seek any state assistance as they seemed to view themselves as entrepreneurial types therefore would not be seen dead near a Dole Office. This time around there seems to be not compunction whatsoever (quite correct in my view)

It happened last time (if by last time you mean 2002/03) too. I remember; I was one of those too proud to claim until my father-in-law all but dragged me to the Job Centre and made me go through the process. (We were in really deep financial trouble at the time and I had been led to believe company directors couldn't claim benefits.)

And this time round, there had been loads of threads containing arguments on here for about 9 months about the rights and wrongs of claiming; that fizzled out around the time this thread started. Eventually the argument went from "It is immoral and taking the piss" to "Oh, tulip. This is getting really bad now."

So there has been consideration, arguments and at least over half a year's dithering for many people who could have been claiming earlier. People who have been benched for many, many months and who have consumed their war chest.

The morals and ethics haven't changed it's just that you probably didn't see the arguments and we're already well into this downturn.

[BlasterBates]

Yup I was very punctual at claiming dole, when I was entitled to it. The first time was during the University holidays, the infamous loophole, and then when I was sacked after a bankruptcy, straight down to the dole office.

[ASB]

Just been researching this, I was going to submit a claim for Council Tax Rebate, but I don't qualify.

With good intentions and hoping to minimise inheritance tax, my parents many years ago put 25% of their property in my name so I have more than £16,000 of 'capital'.

I hope I'm not on the bench too long as the 'capital' disqualifies me from claiming JSA income based benefits which allows claims for Mortgage Interest after 13 weeks.

Would I be correct in assuming that your parents still live in the house and that they are not paying a commercial rent?

If so it is likely to be a gift with reservation and will be ineffective for IHT purposes (ok provided the TR1 was properly done you will own 25% of it on their death but the esate will still be asess for IHT on it's value including your 25%).

Edit from your later post I assume the TR1 was not done and your potential interest will come after any legal charge(s). but has a formal deed of gift been executed and stamped? (It doesn't need stamping, a simple note will suffice but is potentially easier to challenge).

I believe this will satisfy as a "future interest".

[MPwannadecentincome]

Would I be correct in assuming that your parents still live in the house and that they are not paying a commercial rent?

If so it is likely to be a gift with reservation and will be ineffective for IHT purposes (ok provided the TR1 was properly done you will own 25% of it on their death but the esate will still be asess for IHT on it's value including your 25%).

Edit from your later post I assume the TR1 was not done and your potential interest will come after any legal charge(s). but has a formal deed of gift been executed and stamped? (It doesn't need stamping, a simple note will suffice but is potentially easier to challenge).

I believe this will satisfy as a "future interest".

There are no documents - nothing for me to worry about - ta anyway