After 3 years accounts... what to do?

[contractor79]

wow, I'm confused now?!?!

See there's something else here too, this might warrant another thread but here goes.

The insurance folks asked if I was working 16 hrs per week.

Then I read about that muslim cleric choudhary who the sun said got £25k worth of benefits because he was employed on a shoestring by a muslim organisation but then claimed income support, child benefit, council tax benefit etc.

Is there a way we could do something similar when out of contract? Trouble is, my war chest is rather large and I'd fail the means testing.

[Mr.Whippy]

my war chest is rather large and I'd fail the means testing.

Isn't that the point of "means testing" though? You seem to have the means to survive without help..... so why don't you use your "rather large warchest"? After all, isn't that the point of putting money by?

[SueEllen]

wow, I'm confused now?!?!

See there's something else here too, this might warrant another thread but here goes.

The insurance folks asked if I was working 16 hrs per week.

What did you put down as your occupations?

If you put that you are a company director as well as what other job you do then yes you are.

That is because as a company director you will be trying to get a new contract for your business and this should take you about 16 hours a week. Remember you are running a company not just an employee of that company and that has other responsibilities.

Is there a way we could do something similar when out of contract? Trouble is, my war chest is rather large and I'd fail the means testing.

No one on here understands how you have been paying yourself.

The normal way for small companies is that directors take the minimum to get NI contributions paid for them, then the rest is made up in dividends if the company has the reserves to pay dividends.


If your accountant is around they would advise you to withdraw the minimum from your reserves (war chest) i.e. salary, until you have to go down the route of claiming benefits because your company has limited funds.

The people who work the benefit systems can do so because:
1. They have a number of children that have to be provided for
2. They only work up to 16 hours a week on minimum wage
3. They don't run companies with reserves
4. They don't have any other significant savings