Contractors claiming benefits?

[TheCyclingProgrammer]

Depends on how much you are taking out of the company at the time.
If you are hovering around the 30k per year mark, or below, the difference can be quite startling.

E.g. according to current tables, earning 30k per year and paying 300 per week in childcare for 2 kids = tax credits of £11,930 per year.

Ah OK, TIL. I assumed they were equivalent. Much easier to just get YourCo to pay or issue vouchers IMO. For the record, I'm not a fan of claiming benefits just because you're on an artificially low salary. Having your cake and eating it spring to mind...

[northernladuk]

But the same still applies. Someone can earn £1 million blow it all on booze, drugs, and women and then claim JSA. Someone who works hard to save, does without but saves £20K will be told they can't claim a bean. Bit unfair.

Absolutely. Can't factor stupidity in to the rules unfortunately. Also seems a tad unfair you pay in all your life and can't claim but someone that does f'all expects to get it. We could go in to them breeding more offspring who expect the same yadda yadda but that's for another thread.

[simplicity]

I don't think she claims JSA as she is working - most likely tax credits

[riffpie]

Devils advocate....

SHE doesn't have savings.

The company has savings.

We are always quick to point out it is the companies money until withdrawn and treating it as such is an absolute rule and you are always one of the first to point that out to newbies when they are talking about "their money"

We do not know what she is doing with that money, could really be building her business, aiming to hire someone soon etc.

Is it likely? probably not.

Should we rush to judge and say it is immoral? I'm not convinced.

If, in the next tax year, she starts paying out divvies "normally", pay all appropriate tax, and doesn't claim these benefits, she will have done nothing wrong.

Devil's other advocate: SHE owns shares in a company that has assets, and a net worth.