On the bench - JSA, salary etc

[scope]

Contribution-based you can get anyway - unless you've got £16K in the bank? Not sure about the lmit now.

Savings dont effect Contribution based JSA, you get it regardless for up to 6 months.. (Provided you have paid enough NI in the last X months)

[northernladuk]

I know you were probably still in school then....

But still could have made a better job researching the basics like..

https://www.dwpe-services.direct.gov...e/portal/ba/lp

[FiveTimes]

can you get contribution based JSA if you have been paying 7K ? I thought that figure needed to be a bit higher

[psychocandy]

can you get contribution based JSA if you have been paying 7K ? I thought that figure needed to be a bit higher

I could be wrong and Im sure NLUK will correct me but I think the threshold is below this, so that even if you dont pay any NI, you are credited with it if you know what I mean if its over this amount.

[SueEllen]

I don't know why it's impossible for you to search but the JSA amount is £71 a week for a single person and £111 a week for a couple. (Hint- direct.gov.uk gives you the amount and more information.)

They are also a bit funny about sole traders/small limited company directors, even though you are entitled to Contributions JSA due to not having any income coming in.

Part of the problem is that they don't understand how small businesses work.

BTW I did encourage a couple of people to claim it in the past 18 months and they stated how horrible the experience was, and I'm sure one of them had claimed before many years ago.

[lithium147]

Regarding PAYE:
if you paid all the company monies out as dividends + PAYE, and have not enough to use up your remaining tax free allowance, your previous dividend payments can be re-attributed as PAYE payments or director loan payments. Therefore, you can make sure your allowance is fully utilised (for this year only).

Actually, as a director, you dont have to pay yourself a monthly salary. You could actually, pay yourself a year salary.

I am planning (with my accountants approval) to pay myself on 6th april 2013 a full years salary in advance for 2013/2014.

[jamesbrown]

Actually, as a director, you dont have to pay yourself a monthly salary. You could actually, pay yourself a year salary.

I am planning (with my accountants approval) to pay myself on 6th april 2013 a full years salary in advance for 2013/2014.

You can't do that without it being a loan. A salary is paid in the month it falls due or later, not in advance. You can pay in arrears without problems.

[Ignis Fatuus]

You can't do that without it being a loan. A salary is paid in the month it falls due or later, not in advance. You can pay in arrears without problems.

Surely a salary need not be monthly-based? It is not uncommon for it to be weekly, fortnightly, or 4-weekly. What's the problem with it being annual?

[jamesbrown]

Surely a salary need not be monthly-based? It is not uncommon for it to be weekly, fortnightly, or 4-weekly. What's the problem with it being annual?

It doesn't have to be anything, but there are implications. You'll either have to deal with the PAYE from a large payment upfront (depending on what PAYE frequency you might be on) or create a loan that is paid back each month. I can't see any other way, but happy to be corrected.....

What's the commercial reason anyway? Isn't it just an attempt to get more money out more quickly without taking a tax hit?

[captainham]

You can pay a yearly salary (top of page 8), although I believe a lot of commercial payroll software out there can't handle this (which may become more of an issue next year when RTI kicks in).