Reply to: Claiming benefits inbetween contracts

[chris79]

I was on the bench for 5 months - I paid myself a wage for 5 months out my company before I got to the point where I started to seriously consider folding the company (or at least stopping my wage) and claiming to be "unemployed". It's not so easy for me because my partner works from our company too (part-time on a separate contract we have) so it has to stay active for her purpose.

I went to the Jobcentre and explained my situation, told them I ran my own company, that I'd had very little trade for 5 months, and asked if I could claim. I said I didn't care if the answer was yes or no, I just wanted to know how they viewed my situation.

They told me they would support people who were "self employed", if they were in a bad situation (i.e. no trade).

I waited until the new tax year this April and on the Monday I rang up to make my claim. I spent 1hr 35 mins on the phone making this claim and they went through *everything*.. personal accounts, company accounts, council tax, bank references, balances, savings.. pretty much my entire life administration. Right now the UK Government holds my life story. I was due for an interview on the Thursday as my first "sign on day", where I would discover the fate of my claim.. I still had several thousand in my business account and I was going to explain that whilst I was no longer working for the company, my partner was and the funds were there to cover staff costs and administration.

I got offered a new contract on the Wednesday so I rang up and never made the interview. The outcome of what would have happened here will never be known. I wasn't trying to defraud or bend the rules, I was prepared to resign and stop taking a wage from my own company on the basis I had no employment.

What I do know is that if you have anything >£16k you can't claim. How this applies to business account I don't know, but I was told to take my company P/L sheet with me to the first meeting with them.

For my own situation I've been "employed" full-time despite my company operating a loss for 5 months. I didn't actually want to claim anything but after 5 months the situation got to the point where I felt decisive action was required on the future of my company and contracting (as right now contracting doesn't really seem worthwhile). As it happens I'm now back in a contract and I'll see where things go, but long-term I suspect I could be back in the same position I was in 2 weeks ago.

[NotAllThere]

He has no moral right to claim when he's got 1,000's stashed away in his business account regardless of how much NI or anything else that's been paid imo.

If he's legally entitled, he's morally entitled. End of.

[ASB]

that's what I'm thinking
you always read about all these benefits people get
council tax, interest or rent payments, maybe other things too. It's not just the jsa payment of £50/week.

There mainly means tested. So until you get your assets down to < 16k they won't give them to you. You seemed to imply you currently live in tented. I suspect that buying a house you are not living in and not expecting this to count in the means testing might be a touch optimistic.

[contractor79]

But if you buy the house with an IO mortgage the tax payer will pay it for you.

that's what I'm thinking
you always read about all these benefits people get
council tax, interest or rent payments, maybe other things too. It's not just the jsa payment of £50/week.

[XLMonkey]

Am I just feeding a troll here?

Yes, absolutely. Its an a**e of a question to ask (should I claim benefits while having pots of cash - I mean), and not worth answering.

[hugebrain]

I really don't think its worth going through the hassle of buying a house for £60/week is it? Fees alone would come to several months worth of benefits. Then you have the risk of prices falling as already mentioned.

But if you buy the house with an IO mortgage the tax payer will pay it for you.

[Grinder]

I really don't think its worth going through the hassle of buying a house for £60/week is it? Fees alone would come to several months worth of benefits. Then you have the risk of prices falling as already mentioned.

I toyed with signing on for a while (been benched since January). Do you really want to hang out at the DSS every week to sign-on? And get paid the same amount for the whole week that you'd get for an hour or 2 when under contract!

[Andy2]

that's why I'm asking where I can shift it to claim

under the mattress ?

[Mr.Whippy]

that's why I'm asking where I can shift it to claim

Shift it all over to me, then you'll legitimately have no money and therefore a right to claim support.

[Jubber]

that's why I'm asking where I can shift it to claim

Just pay yourself a dividend with the money that is in the business account or pay it to yourself as salary. Then go and sign on. Whether you buy a house or rent a house doesn't really matter. Why is this such a problem?

Am I just feeding a troll here?

[contractor79]

He has no moral right to claim when he's got 1,000's stashed away in his business account regardless of how much NI or anything else that's been paid imo.

that's why I'm asking where I can shift it to claim

[Mr.Whippy]

Forget the nutters who say that you've no moral right to claim because you've only be paying minimal NI

He has no moral right to claim when he's got 1,000's stashed away in his business account regardless of how much NI or anything else that's been paid imo.

[Flopsy]

Buying a house is fine as long as you ensure that your total savings is less than £16k. Houses are not assessed but I'm not sure about other assets cars, gold etc.

The DWP will ask for your bank statements and go through a years worth. They will ask about any missing withdrawals and payments to (for example) family members.

My opinion is that you pay taxes and deserve benefits like anyone else who is unemployed. Obviously others feel differently but that's normal in life.

The problem with the "buying a house" scenario is that with house prices falling you may lose more money that way.

[NotAllThere]

Forget the nutters who say that you've no moral right to claim because you've only be paying minimal NI. You've been paying what's legally correct, and when it comes to taxes, legality is morality. Anything else if fudging the issue. Do you know how difficult it is to draft tax law, so that it doesn't fall foul of demanding money with menaces?.

In Switzerland, if you're claiming unemployment benefit, you get two years of 85% of your former salary - but a company director has to give up their position to get it...

[Jubber]

£75 week @ 10 weeks would make a nice holiday week end which you may need to give you a break after looking at jobserve all day.

You pay unemployment insurance so claim it. Just because you are rich does not mean that you should not claim.

Do you not claim from your house or car insurance because you are rich.

That is fine if you are working through a brolly or have taken all the money out of the company through salary/divs and paid the appropriate tax. That money is then yours and I agree, I would make a claim.

If on the other hand you are an employed director of a company that still has funds to pay your salary, then if you claim benefits (IMHO) you would be committing fraud. I wouldn't risk it. I would get the money out, by paying a salary while I was looking for work. If no further contract could be found and the money ran out I would then make a claim.

If the benefit people found out you were claiming while a company that you run still had 1000s of pounds knocking around, what do you think they would say?