A colleague told me she is on benefit as she only takes a minimal wage from her company. She's on £200 a day and said she's a single parent so it makes sense to claim what she's entitled to. I'm not too sure what she is saying is right. Surely she can't do this. Her argument is she's an employee of her company and otherwise she would have to spend the whole company income each month on bills etc.
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Contractors claiming benefits?
Collapse
X
-
-
Originally posted by simplicity View PostA colleague told me she is on benefit as she only takes a minimal wage from her company. She's on £200 a day and said she's a single parent so it makes sense to claim what she's entitled to. I'm not too sure what she is saying is right. Surely she can't do this. Her argument is she's an employee of her company and otherwise she would have to spend the whole company income each month on bills etc. -
Thinking about it I guess in theory its above board. Its your company if you want to pay yourself minimum wage and invest the rest in your company and keep it there then its up to you? After all no-one can force you to pay yourself more. Separate entity ltd company and personal income etc.
Never thought of that. Got me thinking now ;-)
Dunno though because I guess it'd only work if partner (if you have) didnt work either.
(As an aside I know someone who does the dodgy offshore thing, claims his income is zero and claims loads of tax credits etc. Accident waiting to happen that one is.)Rhyddid i lofnod psychocandy!!!!Comment
-
Does someone want to PM Psychocandy a link to this or shall we wait for him to find it by himself.
Edit: Too late.Comment
-
Originally posted by Pondlife View PostDoes someone want to PM Psychocandy a link to this or shall we wait for him to find it by himself.
Edit: Too late.Comment
-
Originally posted by psychocandy View PostThinking about it I guess in theory its above board.
Either way it's ******* ridiculous.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by simplicity View PostA colleague told me she is on benefit as she only takes a minimal wage from her company. She's on £200 a day and said she's a single parent so it makes sense to claim what she's entitled to. I'm not too sure what she is saying is right. Surely she can't do this. Her argument is she's an employee of her company and otherwise she would have to spend the whole company income each month on bills etc.
Even if it isn't illegal it is immoral.I'm not even an atheist so much as I am an antitheist; I not only maintain that all religions are versions of the same untruth, but I hold that the influence of churches, and the effect of religious belief, is positively harmful. [Christopher Hitchens]Comment
-
Originally posted by northernladuk View PostI think you have it the wrong way around. In theory it is tantamount to fraud bearing in mind the whole reason for benefits etc... What you are saying is you guess it is possible to do. Two different things.
Either way it's ******* ridiculous.merely at clientco for the entertainmentComment
-
Originally posted by northernladuk View PostI think you have it the wrong way around. In theory it is tantamount to fraud bearing in mind the whole reason for benefits etc... What you are saying is you guess it is possible to do. Two different things.
Either way it's ******* ridiculous.
On a £200 per day contract, that's a turnover of 45k + VAT assuming billing 45 weeks a year.
Even if you took the whole lot as salary so no CT, at 45k per year you are still entitled to some tax credits of you have kids in childcare - HM Revenue & Customs: You work 16 hours or more and pay childcare: entitlement tables
However this is leaving the company with nothing, so in between contracts the company and director(s) are screwed.
I find it hard to argue with keeping some money back in reserve - purely from a business perspective.
Fair enough, if your only taking minimum wage then it might be taking the P a bit, but the OP says 'minimal'...
At 45k turnover how much would you want to be leaving in the company warchest?Still InvoicingComment
-
Originally posted by simplicity View PostA colleague told me she is on benefit as she only takes a minimal wage from her company. She's on £200 a day and said she's a single parent so it makes sense to claim what she's entitled to. I'm not too sure what she is saying is right. Surely she can't do this. Her argument is she's an employee of her company and otherwise she would have to spend the whole company income each month on bills etc.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment