Income Support

[mark1980]

Hi,
Does anyone have any experience or knowledge regarding claiming income support as a company director?
I'm just starting up as a ltd. company but only intend to contract myself to 10 hours per week initially as this is all I have projected the business can sustain, with any further deemed voluntary or as a directors role.

I'd really appreciate knowing anyone else's previous experiences if there are any. I know it makes sense to call DWP and ask them but I was hoping to figure out if this is the best way to approach things before I do.

Thanks in advance,
Mark

 

[movietub]

You may as well just ask them to explain the policy in full to you. They have no inclination to aid or deter you from claiming benefits, it's just a case of whether you tick the correct boxes. So you needn't worry that they will get wind that you somehow manage without benefits, they won't care. Either you qualify or you don't.

As I understand it, it's means based to a degree and mostly based on your income through work. I doubt it makes any difference if you employ yourself or not.

But either way, so much better to get the info from the horses mouth - that way if it is later criticised you have a record of why you claimed whatever you claimed.

 

[mark1980]

Thanks, It's daunting as I've never had to claim anything before so it feels almost wrong to try, but I need whatever help I can get to make it through to profitable trading.
There should be more help available to people (especially in yr 1) starting business which essentially help drive the economy forward.

 

[movietub]

Thanks, It's daunting as I've never had to claim anything before so it feels almost wrong to try, but I need whatever help I can get to make it through to profitable trading.
There should be more help available to people (especially in yr 1) starting business which essentially help drive the economy forward.

Well I know that some people (couples with kids who own their own company) will alternately take out small salaries to maintain child support. So I imagine this is quite possible - even if you're effectively leaving more cash in the company than it needs by paying yourself very little.

Certainly a good use of benefits in my opinion, even if they don't intend them to be used to sub a person whilst they develop a business. At least your time on benefits would be very limited compared to the majority who don't have the get up and go to start their own enterprise!

 

[kate1]

Im not sure but would working tax credits apply? Need to be doing 16 hours a week or more, I think??

 

[estwig]

I did exactly what you are suggesting for 3 months. I claimed dole money, or whatever they choose to call it and declared 15 hours and 59 minutes work a week for a ltd company, my company. I didn't draw a wage until the company had sufficient funds for me to sign off and support myself.

 

[NSP5]

I echo what estwig has said.

You get some who see it as 'playing' the system, but if this is the difference between a new business folding or surviving, then who's to say if its any less worthwhile than those who simply cant be arsed to find a job?

 

[snakeeyes121]

I did exactly what you are suggesting for 3 months. I claimed dole money, or whatever they choose to call it and declared 15 hours and 59 minutes work a week for a ltd company, my company. I didn't draw a wage until the company had sufficient funds for me to sign off and support myself.

Were you actively seeking fulltime employment and avaliable for full time employment whilst signing on

To the op as long as you work under 16 hours you can put in a claim, you can get up to £67.50 per week depending on how much you are paying yourself, I think as with jobseekers allowance its deducted pound for pound with what you earn, minus a small disreguard, on JSA the disreguard is £5 per week.

It may be a better option to go down the working tax credits route, 30+ hours if you dont have kids, and you should get £50 odd quid a week.

Dont you have to pay yourself the NMW even if you are a director if you have contracted hours? if you do that would wipe out most of what you can get from income support.

 

[mark1980]

Thanks for the info so far, much appreciated!

I think I'm going to contract myself for 10 hours per week, it's a realistic amount. This means I won't get a great deal income support wise but will qualify for housing benefit, council tax benefit and a few other things which will ultimately give me more help than working tax credits - which I calculated would only give me about £31 a week. Plus with WTC it's the whole years earnings that are taken into account and I have earned a significant amount from my previous employer this tax yr already.

Like I said, it's not ideal having to claim from the state but ultimately the business' success is a benefit to the economy anyway.