What do you do when the money runs out?

[mudskipper]

I remember reading RC's advice - you don't have to close your company or make yourself redundant - just stop paying salary. Find his thread - it had everything you need to know.

[VectraMan]

I was going to sign on 1st Feb, but then got some money through from the Plan B that's enabled me to put it off for at least 2 months (and hopefully I'll get some more).

I've cut right back on everything, but it's not enough to survive on minimum wage, and certainly not on dole money. Lately I've started buying everything on credit cards, paying the minimum payments by direct debit, and not looking at the bills.

Of course to get JSA you shouldn't be working, which I have been.

[MarillionFan]

<CUK Y2K Head on>
What! Run out of money! What type of contractor are you?
It will be a cold day in hell before my money runs out
Kerching!!!
</CUK Y2K Head off>

[PAH]

Once I've finalised my accounts and paid my Corp tax & Inc Tax on divvies....Do I need to liquidate the Ltd Co?

If you were to close the company before paying the tax, after taking any money out of the company as 'salary' or something essential, you may get away with it. Then open a new company if/when you get the next contract.

As long as there's nothing in the company (money or assetts) there's not a lot HMRC can take off you if you don't pay them first. That's the benefit of being ltd.

[xoggoth]

No. You can claim jobseekers allowance if your company has no income but you have to telll them if it does subsequently get any income. Think the company also has to have less that certain amount of assets too but it's been such a long time I forget the details. It will be on the forms they give you.

[NickFitz]

I guess you're always going to be employed as a director of your company. And if you're a single director, you can't make yourself unemployed. Tho' I'm guessing!

Holding the office of director of a company and being employed by that company are two entirely separate things. You can make yourself redundant or whatever, meaning you are no longer employed, whilst still being a director.

Here's the benefits thread from last year - that should contain/link to just about everything you need to know.