I'm a Contractor... what can I claim off the state?

[moneybags]

I'm a disabled contractor so I'm eligible to claim Personal Independence Payment (PIP) as a non means tested benefit. I'm currently claiming out of work benefits for 6 weeks in the run up to my contract work starting in the New Year. The enhanced rate of PIP is approximately £4550 a year and my out of work benefits will amount to £500 approx. I also get £1800 of Child Benefit.

I look at benefits as an offset for tax. I posted a thread where I calculated that my take home for this year should be about 86%. See:

https://www.contractoruk.com/forums/...lly-legit.html

No one has said anything to the contrary other than the fact I didn't account for a small amount of corporation tax (£285).

If I account for the corporation last but deduct the benefits from my personal tax bill then that brings my take home up to 92% for the next 12 months or £8549 of tax on £108500.

I've got three questions if you'd be kind enough to respond:

1) Can I claim anything else as a disable contractor?

2) Should I feel guilty for not putting more into the system to fund the NHS etc?

3) Once I have set up as Ltd, can I claim out-of-work benefits between contracts as a company director if I have no income from the company?

Thanks

[Amanensia]

This is all a wind-up, isn't it! Let's see how it plays out...

[moneybags]

It's a little bit tongue in cheeky Amanensia but it's not a wind up. I have a satirical type SOH but the numbers are genuine.

[ladymuck]

I could be wrong but I always thought you couldn't claim JSA while employed by your LtdCo. You'd have to either never run a payroll or stop the payroll scheme and issue yourself a P45 every time a contract ended.

An accountant would be better placed to advise

[moneybags]

Thanks ladymuck

I've not set up yet because I don't want to miss out on my £500 if it turns out you can't claim but I would really like to set up asap. I spoke to a woman today at the job centre and she said the decision on self employed JSA/ESA is made by a specialist panel and you might have to open your books for the period that you are claiming. In my case, for the initial period I wouldn't have even started trading so there would be no salary to issue a P45 against.

I've written to the DWP to formally ask the question but they will probably take ages to get back to me.

[moneybags]

Ahh, just spotted this:

Permitted Work (Employment and Support Allowance (ESA)) - Turn2us

I need to get my head around "permitted work".

[northernladuk]

3. No. Does a shop claim benefits when it's empty? Your company is still active, you just don't have any customers. Thinking you are out of work in between clients is a very permie way of thinking.

[moneybags]

Yes, northernladuk, that was my logic initially but then I thought I'd put the question to the DWP while I am eligible to claim so my position is 100% legit.

It appears that permitted work is based on income or whether a self employed person is deemed as actively looking for work. If a shopkeeper has no income or SSP then my limited understanding of the rules is they can claim ESA.

I wouldn't say that's permi thinking, a director is just as entitled to benefits as any other UK citizen if the right conditions are met... or that's my smart alec interpretation of the benefits system.

[Lance]

I'm a Contractor... what can I claim off the state?

I'm a disable contractor so........


1) Can I claim anything else as a disable contractor?

It’s spelt ‘disabled’.

[moneybags]

Lance, I'll admit that it was not a deliberate typo and I'm not dyslexic however my disability can affect my ability to spot typos.

Luckily for me there are plenty of bods out there who can proof read and thanks.

I've only had one week off because of my disability in my 15 year career... not bad really so I can find a way to work without gaps and now I'm going to unleash my talents in the world of contracting. You're not going to stop me, I'll tear down the barriers etc. etc.

Ps I want your proof read edits for this post on my desk by tomorrow morning.

Edit: I have nothing to say about my former employer other than they have written me a good reference.