Reply to: React funding in Wales - pays for training after being made redundant

[psychocandy]

It's irrelevant because the contractor doesn't need to leave their job or resign or be sacked or anything like that. If the contractor goes to the Jobcentre and says the magic phrase "I have been laid off due to lack of work" then they will just accept it. I have unfortunately had to do this on 3 separate occasions and am staring down the barrel of the fourth.

Boo

My experience is same as Boo. Like I said they do as matter of course, send a letter to your employer to ask why you left. From what I understand this is common practice, because, of course, if you quit or get sacked from normal employment you dont get JSA. Its just they're system does not differentiate where director of company is same person as the one claiming it seems.

[Boo]

You little cheat

I just can't get over the situation that a fairly established contractor has less than 16k in the business bank or in savings. How the hell does that happen?

S/he was a long time out of contract and the money ran out ?

Boo

[Boo]

How does a (ex)contractor get around these rules? I can't believe the honest truth of the situation will go down well them? is the process so bad they don't check/ask?

Or is all the irrelevant because no one gives a stuff about a one man LTD?

It's irrelevant because the contractor doesn't need to leave their job or resign or be sacked or anything like that. If the contractor goes to the Jobcentre and says the magic phrase "I have been laid off due to lack of work" then they will just accept it. I have unfortunately had to do this on 3 separate occasions and am staring down the barrel of the fourth.

Boo

[psychocandy]

I think you missed this bit out

Yep.

[psychocandy]

Need we ask? My concern and expectation is that while he is a contractor he really is just a replaceable support bod (note not bob as he's clearly dole loving welsh) on £20 an hour.

Nope - sorry to disappoint you all. Wrong.

[NotAllThere]

You little cheat

I just can't get over the situation that a fairly established contractor has less than 16k in the business bank or in savings. How the hell does that happen?

One word. Switzerland.

[northernladuk]

<stuff>

Good stuff thanks.

[northernladuk]

To be fair I already knew that part of the rules as I've told a couple of contractors to do it.

You little cheat

I just can't get over the situation that a fairly established contractor has less than 16k in the business bank or in savings. How the hell does that happen?

[SueEllen]

I did. Interesting.

To be fair I already knew that part of the rules as I've told a couple of contractors to do it.

[petergriffin]

For the purpose of the DWP it doesn't matter if you were/are a contractor, temp, permie, PAYE, umbrella or what else. What counts is:

1) That you are able and available for work
2) that you didn't make yourself intentionally unemployed (by walking out of your job or being dismissed for gross misconduct)
3a) that you've paid enough NI (contribution-based) or
3b) that you have no more than 16K in saving or other assets (income-based).

If you are on income-based JSA and have £75k sitting in your dormant Ltd, you need to declare that, regardless of whether the money is technically yours or of the Ltd.

Any contractor who finds themselves in the above situation commits benefit fraud. No ifs, no buts.

[northernladuk]

I think you missed this bit out

I did. Interesting.

[SueEllen]

Are you sure about that? How can you look for a job when you are laid off (which by definition means you are still employed)

https://www.gov.uk/lay-offs-short-timeworking/overview

I think you missed this bit out

[northernladuk]

If you are laid off temporarily you can claim income-based JSA - this is where he fits in.

Are you sure about that? How can you look for a job when you are laid off (which by definition means you are still employed)

https://www.gov.uk/lay-offs-short-timeworking/overview

[SueEllen]

Noooo. You missed the point of the whole post. You have to be eligible for it and certain situations when leaving employers means you may not be eligible or at least have a long delay. My argument is that there are rules as to WHY you have no income to consider. i.e. you can't just quit your job and walk straight in to the Jobcentre and expect a payout.

If you are laid off temporarily you can claim income-based JSA - this is where he fits in.

[northernladuk]

Income-bas0000000000000000000ed JSA is based on you having no income so I suspect that's where a contractor falls in.

Noooo. You missed the point of the whole post. You have to be eligible for it and certain situations when leaving employers means you may not be eligible or at least have a long delay. My argument is that there are rules as to WHY you have no income to consider. i.e. you can't just quit your job and walk straight in to the Jobcentre and expect a payout.

EDIT and technically a contractor does have income. An unemployed one doesn't.