JSA for contractors - money in Ltd account.

[stek]

Tch you are such an amateur - back in the day when I was a recruitment consultant and so spent a lot of time in job centres (a really rather large amount of time was spent in Skelmersdale Job Centre).

And what you need to do is come in with a really $hitty attitude be rude, abusive and threatening and say the words

"EEEEEEE were de money dat I've eeeeeeaaaaaaaarneed" in a really crap scouser accent.

I always used to love the way they used the word earned when they meant the free money I get for being a lazy scrounger!!

The Concourse.....

[Batcher]

The Concourse.....

Oh, the glamour...

[psychocandy]

Certain posters who will remain nameless for now seem to lay themselves off between contracts and claim JSA. We may have our own views on this, but we are assured it is all legal and above and that the contractors are entirely open with Dole Office staff.

I am wondering: do these contractors show the Dole Office staff how much money is in the Ltd account?

I'm not intending to do this myself, but am simply curious.

In alll honesty, I dont know what the right way to do it is. Its all a bit of a mixed bag too because a lot of JSA staff dont understand how contracting works etc.

Last time I claimed, I just gave them my P45 and admitted I was director of the company etc and that there was no work on at the moment and they were happy with that. All they wanted to know then was

1. I didnt have any work.
2. I was looking for work.
3. How much personal savings I had.

Didnt ask me about the company account at all so I didnt tell them. In my case, there was no profit there anyway just VAT/CT money.

I have heard stories of them asking people about company reserves though. Even heard that they've told people to use the company bank account - even if all thats there is money for VAT and/or CT which doesnt seem right to me.

But, having profit in the company, claiming JSA and then paying your self dividends out of the company profits is probably not a good idea. You might get away with it but I wouldnt risk it.

I suppose you could argue that you claim JSA and still get dividends from your BT shares and it makes no odds so its the same.

BUT, I always make sure I pay the dividends before claiming JSA and just leave the company as is for the duration.

Its all a big grey area though mostly.

[psychocandy]

Perhaps you shouldn't classify those who claim JSA as contractors - rather just disguised employees....

Absolutely unrelated. Yes I am an employee and director of my own company.

[psychocandy]

ftfy

Contractors who claim JSA - Kermit the Frog
Contractors who pay low salaries/high dividends - Fozzy Bear

[psychocandy]

For contribution based, you don't need to. For income based (which I tried to claim last year), they wanted company accounts, profit and loss, etc. So much of a PITA that I didn't bother in the end (and they gave me contribution based JSA for reasons I don't understand).

Income-based. Wife earns £12K part-time they just said dont bother.

[psychocandy]

Thanks VM. I was asking because a poster in another thread stated:



I am just wondering if 'totally upfront and honest' includes showing Ltd company bank statements, although I now understand from what you say that there is formally no need to do so.

If they ask I will show. No problem with that. But then they didnt ask me what I had for breakfast either so I didnt offer than information either.

[psychocandy]

I don't have a problem with unemployed people with money claiming contribution based JSA. I find it perverse that a company director, who takes a tax advantage as a business rather than as a disguised employee, can have spare money in the Ltd and claim to be unemployed / laid off. It seems to me that if you want the advantages of being in business, you should pay your salary between contracts (if you have that money). But I accept it may be legal.

I am interested whether being upfront and honest includes advising the Dole Office how much money and spare money (after tax obligations are met) is in the Ltd account.

In my case no spare money. As above, if there is money, you can't pay it out as salary and claim JSA. Paying dividends would also be dodgy IMHO.

Again, as above, I answer questions that they ask truthfully.

[psychocandy]

But I thoiught that to claim JSA you had to prove you had been laid off and not sacked/left the job of your own accord.

So surely in order to claim JSA you need to stop being an employee of your LTD?

Absolutley no idea what the score is if you are a director of your LTD...

Yes you need a P45 from your company.

[speling bee]

In my case no spare money. As above, if there is money, you can't pay it out as salary and claim JSA. Paying dividends would also be dodgy IMHO.

Again, as above, I answer questions that they ask truthfully.

Thanks.