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

[petergriffin]

For the purpose of the DWP it doesn't matter if you were/are a contractor, temp, permie, PAYE, umbrella or what else. What counts is:

1) That you are able and available for work
2) that you didn't make yourself intentionally unemployed (by walking out of your job or being dismissed for gross misconduct)
3a) that you've paid enough NI (contribution-based) or
3b) that you have no more than 16K in saving or other assets (income-based).

If you are on income-based JSA and have £75k sitting in your dormant Ltd, you need to declare that, regardless of whether the money is technically yours or of the Ltd.

Any contractor who finds themselves in the above situation commits benefit fraud. No ifs, no buts.

[SueEllen]

I did. Interesting.

To be fair I already knew that part of the rules as I've told a couple of contractors to do it.

[northernladuk]

To be fair I already knew that part of the rules as I've told a couple of contractors to do it.

You little cheat

I just can't get over the situation that a fairly established contractor has less than 16k in the business bank or in savings. How the hell does that happen?

[northernladuk]

<stuff>

Good stuff thanks.

[NotAllThere]

You little cheat

I just can't get over the situation that a fairly established contractor has less than 16k in the business bank or in savings. How the hell does that happen?

One word. Switzerland.

[psychocandy]

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.

Nope - sorry to disappoint you all. Wrong.

[psychocandy]

I think you missed this bit out

Yep.

[Boo]

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?

It's irrelevant because the contractor doesn't need to leave their job or resign or be sacked or anything like that. If the contractor goes to the Jobcentre and says the magic phrase "I have been laid off due to lack of work" then they will just accept it. I have unfortunately had to do this on 3 separate occasions and am staring down the barrel of the fourth.

Boo

[Boo]

You little cheat

I just can't get over the situation that a fairly established contractor has less than 16k in the business bank or in savings. How the hell does that happen?

S/he was a long time out of contract and the money ran out ?

Boo

[psychocandy]

It's irrelevant because the contractor doesn't need to leave their job or resign or be sacked or anything like that. If the contractor goes to the Jobcentre and says the magic phrase "I have been laid off due to lack of work" then they will just accept it. I have unfortunately had to do this on 3 separate occasions and am staring down the barrel of the fourth.

Boo

My experience is same as Boo. Like I said they do as matter of course, send a letter to your employer to ask why you left. From what I understand this is common practice, because, of course, if you quit or get sacked from normal employment you dont get JSA. Its just they're system does not differentiate where director of company is same person as the one claiming it seems.