Reply to: job seeker allowance , 20k in bank account , 40k debt

[Pondlife]

Sniffs the air and pulls face in disgust.

[quackhandle]

psychocandy to thread, calling psychocandy to thread...

qh

[SueEllen]

20k may sound too much but i have crazy out going ( 1300£ corporation tax 800£ credit card and loan etc ) its only couple of month worth of expenses thats why im thinking applying for job seeker allowance before situation gets worse.

already down graded my house and on flat share and sold my car :(

1. Corporation tax is owed by your company who is a separate legal entity to yourself
2. "credit card and loan etc" - What the hell does that mean? People can have multiple credit card debts and loans
3. "already down graded my house and on flat share and sold my car" - more rubbish.

Anyway if you were telling the truth and not changing your story you have already been given advice.

Pay back the £5000 into the company, pay that money directly to HMRC, negotiate the rest of your debts and then sign on. Oh and make sure you pay your council tax as you don't want to end up in prison.

[Scruff]

situation is i have 40k outstanding debt ( corporation tax 12k, loan,and credit cards)
in my bank account i have 20k ( 15k borrowed from family and director loan from my limited company) which i have reserved for day to day living expenses and paying various debt installments.

question is will i qualify for job seeker allowance given above circumestances?


thank in advance

Bull-Tulip of the highest order is my call?

[TheFaQQer]

20k may sound too much but i have crazy out going ( 1300£ corporation tax 800£ credit card and loan etc ) its only couple of month worth of expenses thats why im thinking applying for job seeker allowance before situation gets worse.

already down graded my house and on flat share and sold my car

If £20k is only a couple of months, £72 a week isn't going to go far, is it?

If you need £10k a month just to keep your head above water, you should have a sufficient grasp of running a business to sustain that lifestyle.

[Zero Liability]

Corporation Tax is not an outgoing, it is the repayment of money that you used that did not belong to you.

Or put another way, money HMRC intends for itself. Either way, should be left to one side to avoid hassle.

[tractor]

...

20k may sound too much but i have crazy out going ( 1300£ corporation tax 800£ credit card and loan etc ) its only couple of month worth of expenses thats why im thinking applying for job seeker allowance before situation gets worse.

already down graded my house and on flat share and sold my car

Corporation Tax is not an outgoing, it is the repayment of money that you used that did not belong to you.

[Mincepie]

I love these posts normally made from the bar after an early trap

[junior contractor]

20k may sound too much but i have crazy out going ( 1300£ corporation tax 800£ credit card and loan etc ) its only couple of month worth of expenses thats why im thinking applying for job seeker allowance before situation gets worse.

already down graded my house and on flat share and sold my car

[MyUserName]

Why are you lumping your Corp Tax and Loans / Credit Cards into one?

The CT is the Companies Debt, the Loans and Credit Cards are your own

Because this post is a wind up?

[SimonMac]

Why are you lumping your Corp Tax and Loans / Credit Cards into one?

The CT is the Companies Debt, the Loans and Credit Cards are your own

[TheFaQQer]

Blow the £20k on women and drugs. Or squander it. Then go bankrupt.

HTH

<OG>Is that what you did?</OG>

[BrilloPad]

Blow the £20k on women and drugs. Or squander it. Then go bankrupt.

HTH

[TheFaQQer]

Having a significant bank balance of £20k, which is loaned from the company, whilst having a corporate debt to HMRC is crazy.

That said, as MS says - if you have paid NI then you can get contributions-based JSA as long as you are redundant. It's up to £72.40 a week, depending on your age.

You won't be eligible for any other JSA though because you have £20k in savings.

https://www.gov.uk/jobseekers-allowance/what-youll-get

[mudskipper]

Have you paid NI? My understanding is that you can claim 6 months of contribution based JSA which isn't means tested. There's some debate as to whether company money is included in means tested JSA - seems to me the simplest thing would be to pay your corp tax early, then it's a non-issue. Good luck, hope you get sorted.