First timer requiring info on available benefits

[jamesabennett]

Hi all,

i am considering making the leap into the world of contracting, and wanted to understand if i am eligible for things such as working tax credits (we have 3 kids). i appreciate that may be down to what pay myself as a salary.

i hear talk from other contractors i have employed on projects whilst i have been a permie saying that 700 a month is the magic number, and i am able to claim all sorts of benefits.

does anyone have any experience of this and could they help explain? I went to the HMRC website and used their calculator and it said i was entitled to nothing based on my last financial years earnings in full time employment.

many thanks

James

[cojak]

Err...

You would be a contractor. Do you know what a contractor is?

One or 2 posters have been known to pick up JSA when their savings ran out between contract, but if you are a contractor you ought to be paid enough through salary (and your dividends) to make you ineligible for tax credits.

(Also expecting to claim tax credits while being a contractor is taking the pee IMO.)

[eek]

Err...

You would be a contractor. Do you know what a contractor is?

One or 2 posters have been known to pick up JSA when their savings ran out between contract, but if you are a contractor you ought to be paid enough through salary (and your dividends) to make you ineligible for tax credits.

(Also expecting to claim tax credits while being a contractor is taking the pee IMO.)

I think (in fact I know) DWP would actually call it FRAUD....

You could, I suppose, claim to earn £700 a month and never pull anything out in dividends. But if you take anything out in dividends you would need to declare it in the other income section....

[TheFaQQer]

One or 2 posters have been known to pick up JSA when their savings ran out between contract

You don't have to have run out of savings to claim one bit of JSA - £75 a week or so you can claim regardless of savings.

Until July 8th, when Gideon announces the change that makes sure that you can't do that any more.

[tractor]

....

You don't have to have run out of savings to claim one bit of JSA - £75 a week or so you can claim regardless of savings.

Until July 8th, when Gideon announces the change that makes sure that you can't do that any more.

There is a max level of savings, IIRC it is 6k and if you don't close your company, they will expect it to be valued so you cannot sit on 100k of assets and still claim (rightly so)

[eek]

You don't have to have run out of savings to claim one bit of JSA - £75 a week or so you can claim regardless of savings.

Until July 8th, when Gideon announces the change that makes sure that you can't do that any more.

If anything is going to happen to basic JSA its going to be the exact opposite of what you claim. The entire reason we supposedly have an immigration crisis is that we pay benefits based on need rather than previous contributions (which is the way most of the rest of the EU works). As such I would expect this bit to be strengthened or at least mentioned as cuts are made elsewhere...

[eek]

There is a max level of savings, IIRC it is 6k and if you don't close your company, they will expect it to be valued so you cannot sit on 100k of assets and still claim (rightly so)

Not quite £6k of savings is the point at which the income based support starts to tail off and £16k is the point at which you become ineligible

The scary bit is that I can now quote this without checking at the office

[ASB]

Not quite £6k of savings is the point at which the income based support starts to tail off and £16k is the point at which you become ineligible

The scary bit is that I can now quote this without checking at the office

I asdume that savings includes shares. That would include shares ,n myco. Valuing those is subjective, but at the retained shaareholders funds would seem reasonable.

so trying to retain mogey in myco as a means of enabling a claim should hopefully fail in most cases.

[SueEllen]

If anything is going to happen to basic JSA its going to be the exact opposite of what you claim. The entire reason we supposedly have an immigration crisis is that we pay benefits based on need rather than previous contributions (which is the way most of the rest of the EU works). As such I would expect this bit to be strengthened or at least mentioned as cuts are made elsewhere...

Agreed.

Carers allowance has been based on residency since 2011. And Germany was unsuccessfully taken to the ECHR about a contributory benefit.

So it isn't "Europe" stopping the government changing the rules.....

[mudskipper]

Not quite £6k of savings is the point at which the income based support starts to tail off and £16k is the point at which you become ineligible

The scary bit is that I can now quote this without checking at the office

Contribution based JSA is allowed regardless of savings I believe.