Getting ahead of years salary payments in case of no contract before year end

[BolshieBastard]

I get paid my salary once a year. How would that work with JSA? I've never claimed it and have no intention of doing so but would be interested to hear your expert opinion.

Remember, JSA has 2 elements. The test for JSA entitlement is whether you are currently working or not. For the Conts element, a further test is whether you have sufficient contributions or credits and havent already exhausted your entitlement with a previous claim.

Essentially, if you satisfy these tests you will be entitled to Conts based JSA for about 26 weeks (I think) while not working. When and how much you last got paid isnt a consideration.

If you want to claim JSA Income Based, then when and how much you last got paid plus your savings (whether actual or deemed) or redundancy money etc will be taken into account. I think the current savings limit is around the £16k mark. If you're over this threshold, you wont get JSA IB.

In cases of hardship, you can appeal this decision and they can override the decision. However, I think it will be pretty rare that this happens as they expect you to make provision for things like mortgage \ rent, sell the car, take the kids out of private education(!) and terminate any HP or loan agreements you have at your cost before they'll find in your favour.

[BolshieBastard]

Fair enough.

Isnt there a savings limit for contrib based as well though? Or used to be?

Not for conts based, that based on you NI record. There are some other rules but these are based on how many times you've claimed in the last 12 months or so, misconduct etc.

Income Based JSA has a savings limit which knocks most contractors out of entitlement.

[northernladuk]

Not saying anything until NLUK gave his opinion

Possible or not this is just moroninc. I've seen people planning tax down to the last penny but planning their tax around possible future JSA is just

Over to you....

[TheFaQQer]

I pay the salary in December as Dec 31st is my company year end and it's based on that year so in theory if I'm out of contract on Jan 1st, I should claim JSA. As self-employed contractors we shouldn't pay employment insurance or be able to claim it in my opinion.

If you're not running payroll in any other month (and so there is no RTI to complete), then you could claim in January because the money you have received is for the previous year.

I see nothing wrong with claiming JSA if there is a genuine need. If there isn't a genuine need, then I don't think it should be allowed. Of course the tricky bit is determining the genuine need threshold, and as a contractor determining when that will come - we're always confident that the next contract will be along any day now, and if you leave it too late, you'll be in trouble.

[psychocandy]

I pay the salary in December as Dec 31st is my company year end and it's based on that year so in theory if I'm out of contract on Jan 1st, I should claim JSA. As self-employed contractors we shouldn't pay employment insurance or be able to claim it in my opinion.

Up to you....

[psychocandy]

Not for conts based, that based on you NI record. There are some other rules but these are based on how many times you've claimed in the last 12 months or so, misconduct etc.

Income Based JSA has a savings limit which knocks most contractors out of entitlement.

Or partner who earns any money at all

[psychocandy]

Possible or not this is just moroninc. I've seen people planning tax down to the last penny but planning their tax around possible future JSA is just

Over to you....

Either that or the Big Issue for me ;-)

Didnt we have someone asking if they could claim £10 for flu jab the other day? Saving £2....

[northernladuk]

Or partner who earns any money at all

I thought she was a shareholder and/or is an employee of a company....

[psychocandy]

If you're not running payroll in any other month (and so there is no RTI to complete), then you could claim in January because the money you have received is for the previous year.

I see nothing wrong with claiming JSA if there is a genuine need. If there isn't a genuine need, then I don't think it should be allowed. Of course the tricky bit is determining the genuine need threshold, and as a contractor determining when that will come - we're always confident that the next contract will be along any day now, and if you leave it too late, you'll be in trouble.

Genuine need. Now thats a funny one. Who decides that? Admitedly, if I was loaded I wouldnt bother because of the hassle.
But its a personal decision.

I agree, if I know that theres another gig in a week or two, or Im 99% certain that I'll get something in a few weeks, I wouldnt bother claiming. Theres lots of forms and lots of hassle and I'd rather spend the time doing something worthwhile IF I KNOW ANOTHER GIG IS STARTING.

But, its too late, 3 months down the line thinking tulipe, wish I'd claimed from the start Im a bit skint now. Those 3 months are gone - you can't backdate it. 13 weeks x £72 = almost £1000. Month maybe two months worth of mortgage payments?

For the record, I've claimed JSA twice in the past 3 years. First time, I got a gig after 10 days so wish I hadnt bothered. Got £60 odd quid for that if I remember. 2nd time I was on the bench for over 3 months so well over £1000 so I'm glad I did. Sounds like not a lot but its almost 2 months mortgage payments for me.

[mudskipper]

BTW - contribs based JSA is nothing to do with hardship, its to do with what you've contributed.

So how much NI are you contributing?

If you don't like the grief, stop asking inane questions about the best way to milk the system for every penny.