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Setting up as self-employed?

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    Setting up as self-employed?

    Hi everyone,

    I have closed my limited company due to lack of contract work. I went to Uni for a little while to try a career change but have now quit and am on contribution based jobseekers allowance.

    For this I get £71/week. I won't get more benefits since I'm means tested out with more than £16,000 savings.

    Could I set myself up as a self-employed consultant? I imagine the drawback is that I have to pay myself based on PAYE when I get work. However, if I don't get work I can claim a low income and claim working tax credits not just JSA, is that right?

    Or are you still better off with a Ltd company as a Director but pay yourself min wage or part time wage 16 hours as week in order to claim when you are out of contract?

    #2
    Originally posted by contractor79 View Post
    Hi everyone,

    I have closed my limited company due to lack of contract work. I went to Uni for a little while to try a career change but have now quit and am on contribution based jobseekers allowance.

    For this I get £71/week. I won't get more benefits since I'm means tested out with more than £16,000 savings.

    Could I set myself up as a self-employed consultant? I imagine the drawback is that I have to pay myself based on PAYE when I get work. However, if I don't get work I can claim a low income and claim working tax credits not just JSA, is that right?
    When you mean set it up? For when you get work you mean or purely to try and get more benefit? What makes you think you can get more than just JSA?

    Oh, agents won't work with the self employed either so you won't be able to contract under this model.

    Or are you still better off with a Ltd company as a Director but pay yourself min wage or part time wage 16 hours as week in order to claim when you are out of contract?
    Again, is the idea to set yourself up ready to start work again or just as a vehicle to get more benefits? If you are not working how can you pay yourself the minimum wage. When you are out of contract you are employed by your LTD so can't claim anyway unless you make yourself redundant, in which case you are back to square one.

    I think you need to clarify what you are trying to achieve here. Benefit cheat or be ready for your next pieces of work?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Thought I would have a look at your history as this seems to be the same type of rambling post with no research, facts or anything that looks like it has just been made up on spec like many posts recently and I spot a post of yours from 2009 point out a website which tells you exactly what you are entitled to..
      http://forums.contractoruk.com/accou...lst-bench.html

      Am kinda wondering why you are asking questions like this when you seem to be the one telling us what we can claim...
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        I'm simply inquiring for information.

        I not only seek a tax-efficient way of working but also a setup that allows maximisation of benefits when out of contract.

        I'm not looking to 'cheat' or do anything illegal. I seek only legal solutions.

        I ask about self-employed since there was something on the radio the other day complaining that people were being told to set up as self-employed, even when this was unsuitable to the individual, as they could claim more benefits that way such as working tax credits and not be classed as unemployed.

        Comment


          #5
          Originally posted by northernladuk View Post
          Oh, agents won't work with the self employed either so you won't be able to contract under this model.
          I don't understand this.

          Again, is the idea to set yourself up ready to start work again or just as a vehicle to get more benefits? If you are not working how can you pay yourself the minimum wage. When you are out of contract you are employed by your LTD so can't claim anyway unless you make yourself redundant, in which case you are back to square one.
          Well if you had money in your company you could employ yourself on reduced hours such as 16 hours a week to look for the next contract on min wage then tell the state you are a low earner now and get some benefits to top it up.

          Comment


            #6
            UK agencies will only work with contractors in the UK who work through limited companies, umbrella companies (, LLPs) and, at a stretch, temps.

            This is because if they work with freelancers and the freelancer does a bunk they are responsible for that freelancer's tax and national insurance. The tax legislation was changed some time ago to ensure they can only work with people this way.

            If you wish to work as a freelancer without a legal structure you need to work with companies directly.

            Your second point makes no sense as if you don't have enough money in savings or in your company between contracts you can sign on.
            "You’re just a bad memory who doesn’t know when to go away" JR

            Comment


              #7
              We're having a sockie clear out this morning...
              "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
              - Voltaire/Benjamin Franklin/Anne Frank...

              Comment


                #8
                ...

                Originally posted by cojak View Post
                We're having a sockie clear out this morning...
                YAY Happy hunting

                Comment

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