Reply to: What do you do when the money runs out?

[NickFitz]

I guess you're always going to be employed as a director of your company. And if you're a single director, you can't make yourself unemployed. Tho' I'm guessing!

Holding the office of director of a company and being employed by that company are two entirely separate things. You can make yourself redundant or whatever, meaning you are no longer employed, whilst still being a director.

Here's the benefits thread from last year - that should contain/link to just about everything you need to know.

[xoggoth]

No. You can claim jobseekers allowance if your company has no income but you have to telll them if it does subsequently get any income. Think the company also has to have less that certain amount of assets too but it's been such a long time I forget the details. It will be on the forms they give you.

[PAH]

Once I've finalised my accounts and paid my Corp tax & Inc Tax on divvies....Do I need to liquidate the Ltd Co?

If you were to close the company before paying the tax, after taking any money out of the company as 'salary' or something essential, you may get away with it. Then open a new company if/when you get the next contract.

As long as there's nothing in the company (money or assetts) there's not a lot HMRC can take off you if you don't pay them first. That's the benefit of being ltd.

[MarillionFan]

<CUK Y2K Head on>
What! Run out of money! What type of contractor are you?
It will be a cold day in hell before my money runs out
Kerching!!!
</CUK Y2K Head off>

[VectraMan]

I was going to sign on 1st Feb, but then got some money through from the Plan B that's enabled me to put it off for at least 2 months (and hopefully I'll get some more).

I've cut right back on everything, but it's not enough to survive on minimum wage, and certainly not on dole money. Lately I've started buying everything on credit cards, paying the minimum payments by direct debit, and not looking at the bills.

Of course to get JSA you shouldn't be working, which I have been.

[mudskipper]

I remember reading RC's advice - you don't have to close your company or make yourself redundant - just stop paying salary. Find his thread - it had everything you need to know.

[OrangeHopper]

You do not have to close down the company. Absolutely no reason why you should. You are wasting money if you do. The fact that you have just finalised your account will also help because they will want to see them.

You don't even have to give yourself a P45. The job centre will do that by default and give you one when you do find work.

It may depend on postcode (i.e. the attitude of your job centre) but they should only be taking into account your personal reserves.

[SueEllen]

If you do a search you will find that RichardCranium and a few others have posted a thread about going on the dole.

[Moscow Mule]

http://www.jobcentreplus.gov.uk/JCP/...dev_015482.pdf

Page 23.

You don't have to be made redundant to get jobseekers.

Get down there 1st thing Monday.

[Hiram King Of Tyre]

Very good advice. As soon as we finish a contract we cut back on food/booze/going out and start doing DIY. There is no point paying someone else to do it while you twiddle your thumbs. Get fit too if you are not, stress will bounce off you when you are fit and you will be in good shape for when the next contract comes along.

Don't woor guys, thanks for that. I have been working around the place nd spending some of my savings on materials. I have just been considering myself 'between' contracts' rather that on the dole but the cash is going fast and although I have had more enquiries about jobs of late, there is nothing more than the odd flash of light at the end of the tunnel

[Xenophon]

Some good advice here.

If you aren't earning any money, do try to spend less.

[singhr]

I went savings, bank loan, credit cards, edge of bankrupcy and luckily got a new gig with about a month to spare. I doubt the dole would have made much difference, other than to my sanity, which it would probably have destroyed.

Attack your cost base aggresively straight away, don't wait till you are running low, and what you do have will stretch further. Obvious advice I know but you really do have to question the wisdom of £100 a month mobile bills, sky TV and £50 a week in the pub when you don't have an income.

Very good advice. As soon as we finish a contract we cut back on food/booze/going out and start doing DIY. There is no point paying someone else to do it while you twiddle your thumbs. Get fit too if you are not, stress will bounce off you when you are fit and you will be in good shape for when the next contract comes along.

[Hiram King Of Tyre]

I have a partner yes but I don't see the advantage in her making me redundant.

Yes, I believe that I can make the company 'dormant' or something.

The company does own assets though.

[TimberWolf]

If you are unemployed you can claim non-means tested JSA for 6 months - £64 quid a week but better than a kick in the arse.

Make sure you sign on as quickly as possible and don't look after yourself though otherwise you'll get nill. I dipped into savings and sold my flat before I considered signing on. By which time I was not eligible for JSA or any other benefit (having not paid enough NI while being out of work), and because of the equity that was in the sale of the flat also pay full council tax despite having no income. You have to know the system.

[Jeebo72]

Absolutely....hence the question, do I need to liquidate the company

Do you have a wife/partner that you can make joint director? They can then make you redundant.

You can close a company down with a view to reopening at a later date too.