Reply to: Making myself redundant?

[A Good Man]

Just an opinion....

I was out of contract for a year 6 years ago. I made the co. dormant and strolled down the job centre not expecting anything from the staff - and that's exactly what I got!

In my day, you couldn't claim if you had over £8K in savings. In my case, the staff were poorly educated, poorly trained and poorly motivated. So I just told them what they wanted to hear and they didn't bother me over the JSA. So, keep the information you tell them to a minimum! Make sure you claim as it will count towards your state pension.

When it came to finding me a job they said "You are better off finding your own" and didn't help at all, but when I found a contract they wanted me to say they'd found it for me so that they could fiddle their own stats!! THey were delighted when I agreed and even bought me a coffee.

[FarmerPalmer]

Do you have to stop paying yourself salay and dividends during the period you claim JSA ?

if you pay yourself salary then you are employed - so yes

however dividends are investment income. but they would take all income into account when determining amounts payable to you. so probably best not.

If your company can afford to pay you then why not stay employed and spend time developing marketable products that your company can sell ... windows mobile / iphone apps / games, platform independent protocol stacks etc - small development time, and mass market appeal.

[Andy2]

I was made redundant 18 months ago from a permanent job and got my P45.

I still had my limited company sitting idle, and I was still director of that company.

The question of directorship was never asked at the job centre.

I signed on to get my stamp payed whilst I looked for a contract, and they decided to pay he JSA as well.

1 month later I got a gig, and wrote to them telling them that I was now employed. They sent me my P45 with JSA applied and I started being employed by my limited company again.

So I can't see any problem with you becoming redundant from your limited company - after all it can't afford to pay you - and then the company taking you back on when things pick up.

Do you have to stop paying yourself salay and dividends during the period you claim JSA ?

[FarmerPalmer]

I was made redundant 18 months ago from a permanent job and got my P45.

I still had my limited company sitting idle, and I was still director of that company.

The question of directorship was never asked at the job centre.

I signed on to get my stamp payed whilst I looked for a contract, and they decided to pay he JSA as well.

1 month later I got a gig, and wrote to them telling them that I was now employed. They sent me my P45 with JSA applied and I started being employed by my limited company again.

So I can't see any problem with you becoming redundant from your limited company - after all it can't afford to pay you - and then the company taking you back on when things pick up.

[diesel]

They were wrong.

so what is the options?

[NotAllThere]

... They said only way was to close company...

They were wrong.

[diesel]

I understood directors can get benefits and JSA etc., but for JSA you'll have to show that you're actively looking for work, which means applying permie jobs as well as contract. It's probably easier to get housing benefit and income support as long as you can prove you have no income from your business. I did wonder if I could use the system to pay the rent whilst working full time on my plan B - a little bit dishonest perhaps.

Are you sure i was in the position 2 years ago...job centre said i will get nothing apart from basic NI stamp as i was still a director of a Ltd Co. They said only way was to close company...

[Svalbaard]

When attending the Job Centre be prepared to struggle to get through the "computer says no" thickoes who man the desks there and demand to speak to a manager from the word go.

I was trying to find a story I saw on the Times.co.uk website about a senior executive who had a horror story when faced with having to sign on; and the lack of professionalism or candour shown by the child like staff at the centre.

[Mart001]

LINK

IR35 friendly?

[Money Money Money]

LINK

[Mart001]

http://forums.contractoruk.com/accou...ort-you-4.html

yep you can claim JSA while still being a director and income support. speak to the job centre.

[VectraMan]

I understood directors can get benefits and JSA etc., but for JSA you'll have to show that you're actively looking for work, which means applying permie jobs as well as contract. It's probably easier to get housing benefit and income support as long as you can prove you have no income from your business. I did wonder if I could use the system to pay the rent whilst working full time on my plan B - a little bit dishonest perhaps.

[Archangel]

Why not go to the job centre and explain your situation and find out the official verdict? Maybe there is a way of doing it without having to close down the company, I'm sure they must have come across this situation before? Maybe if you can prove the company isn't turning over any money etc.

Also is it not the case you can give yourself a P45 from the company, but remain as the company director and just re-hire yourself once a contract comes in?

What the company is doing has no bearing on you personally. If you give yourself a P45 you are unemployed and can get job seekers allowance etc. No need to shut down the company. (if it pays you a divvie whilst you are unemployed this will effect any means tested benefits).

[chris79]

Why not go to the job centre and explain your situation and find out the official verdict? Maybe there is a way of doing it without having to close down the company, I'm sure they must have come across this situation before? Maybe if you can prove the company isn't turning over any money etc.

Also is it not the case you can give yourself a P45 from the company, but remain as the company director and just re-hire yourself once a contract comes in?

[pmeswani]

I've not had a contract in over 6 months and unfortunately January hasn't shown any light at the end of the tunnel. I'm having to face that work has totally dried up and isn't likely to reappear anytime soon. So I'm wondering what sorts of benefits I can claim for. I always figured I couldn't claim anything because I'm actually still employed by my own firm of course. My accountant has suggested giving me a P45 so that I'm unemployed - but how does that affect my company and my ability to work again should I magically get a contract next week? Thanks for any advice/pointers.

Mark

Give up contracting. Disolve your business, get your P45, go down to the Job Centre, claim JSA, and try and see if you can get Income Support and any other benefits. Become another statistic and stay on the couch for another 12 to 18 months until things pick up and then apply for a permie role.

HTH.