React funding in Wales - pays for training after being made redundant

[eek]

Either way, and I am sure PC has explained it many times but, I just can't see how a contract cannot have £16k in the business or held personally. Where the hell is the warchest if you can claim you are in that situation?

Need we ask? My concern and expectation is that while he is a contractor he really is just a replaceable support bod (note not bob as he's clearly dole loving welsh) on £20 an hour.

[DirtyDog]

Either way, and I am sure PC has explained it many times but, I just can't see how a contract cannot have £16k in the business or held personally. Where the hell is the warchest if you can claim you are in that situation?

There's two elements - contributions based (which is available if you have made enough class 1 NI contributions) and income based (where you need to earn very little and have less than £16k in savings).

Some people are eligible for both parts, some for just one, some for neither. So if you are self-employed with over £16k in savings, you get nothing. If you run your own Ltd, you can keep claiming as long as you have made enough contributions, whilst still pretending to be in business.

[Boo]

I wonder how you'd score on the business entity tests if you run to the job centre at the end of each contract.

Whether or not a firms' earner is ever laid off doesn't affect the business entity tests.

But if there is a period between the end of a contract and going on the dole where MyCo pays my wages then that makes it less of an IR 35 risk just because the employer-employee relationship between myself and MyCo looks more real and the relationship between myself and ClientCo correspondingly less so.

Boo2

[northernladuk]

Whether or not a firms' earner is ever laid off doesn't affect the business entity tests.

But if there is a period between the end of a contract and going on the dole where MyCo pays my wages then that makes it less of an IR 35 risk just because the employer-employee relationship between myself and MyCo looks more real and the relationship between myself and ClientCo correspondingly less so.

Boo2

Indeed and made me wonder. How does employment law come in to this? To leave the company someone would have to resign, be made redundant or get sacked. Some of these have a legal impact and some have an impact on claiming JSA. A comment from DW&P says...

Things that may affect your benefit
If you left your job
If you chose to leave your job, we’ll ask for the reason why. You need to show that you had ‘just cause’ for leaving. Your last employer may be asked to comment on any statement you make. Jobcentre Plus will make a decision based on a number of things, which include whether it was reasonable for you to take
the action you did. If we decide that you left your job without just cause, you may lose your benefit for between 1 and 26 weeks.
If you were dismissed (‘sacked’)
If you were dismissed from your job, we’ll ask your last employer for the reasons. You will be able to comment on what
they say. Jobcentre Plus will decide whether you have lost your job because of your own actions. If we do decide that this is the
case, you may lose your benefit for between 1 and 26 weeks.

How does a (ex)contractor get around these rules? I can't believe the honest truth of the situation will go down well them? is the process so bad they don't check/ask?

Or is all the irrelevant because no one gives a stuff about a one man LTD?

[SueEllen]

How does a (ex)contractor get around these rules? I can't believe the honest truth of the situation will go down well them? is the process so bad they don't check/ask?

Or is all the irrelevant because no one gives a stuff about a one man LTD?

Income-based JSA is based on you having no income so I suspect that's where a contractor falls in.

[northernladuk]

Income-bas0000000000000000000ed JSA is based on you having no income so I suspect that's where a contractor falls in.

Noooo. You missed the point of the whole post. You have to be eligible for it and certain situations when leaving employers means you may not be eligible or at least have a long delay. My argument is that there are rules as to WHY you have no income to consider. i.e. you can't just quit your job and walk straight in to the Jobcentre and expect a payout.

EDIT and technically a contractor does have income. An unemployed one doesn't.

[SueEllen]

Noooo. You missed the point of the whole post. You have to be eligible for it and certain situations when leaving employers means you may not be eligible or at least have a long delay. My argument is that there are rules as to WHY you have no income to consider. i.e. you can't just quit your job and walk straight in to the Jobcentre and expect a payout.

If you are laid off temporarily you can claim income-based JSA - this is where he fits in.

[northernladuk]

If you are laid off temporarily you can claim income-based JSA - this is where he fits in.

Are you sure about that? How can you look for a job when you are laid off (which by definition means you are still employed)

https://www.gov.uk/lay-offs-short-timeworking/overview

[SueEllen]

Are you sure about that? How can you look for a job when you are laid off (which by definition means you are still employed)

https://www.gov.uk/lay-offs-short-timeworking/overview

I think you missed this bit out

[northernladuk]

I think you missed this bit out

I did. Interesting.