Business closure - Claim benefits ?

[OMGVape]

Just a thought but ....

I’ve been a director of my business for many years. If I have to close for a while due to virus problems could I claim any benefits?

 

[Mr D]

Yes - though benefits impacted by your income and your ability to look for work.
Actual payment may be limited or stopped if you don't meet all the criteria after applying.

And can take several weeks to award benefits. How long you planning on closing for?

 

[OMGVape]

Yes - though benefits impacted by your income and your ability to look for work.
Actual payment may be limited or stopped if you don't meet all the criteria after applying.

And can take several weeks to award benefits. How long you planning on closing for?

Thanks Mr D, I’ve got no plans to close but who knows what can happen in the coming months.

 

[mattk]

Are you an employee of your limited company?

If you are and you draw a salary, then presumably you would need to terminate your employment in order to be eligible to claim benefits?

 

[MikmakFer]

I know it's not the original question as that refers to benefits but for tax purposes, if you do decide to close then make yourself redundant with upto £30k payout and you'll pay zero tax on the income plus will get a tax deduction through the Ltd.

Then look at benefits - these will be taken into consideration for your benefits application though.

 

[STDFR33]

I know it's not the original question as that refers to benefits but for tax purposes, if you do decide to close then make yourself redundant with upto £30k payout and you'll pay zero tax on the income plus will get a tax deduction through the Ltd.

It won't be tax free.

 

[MikmakFer]

Provided that there's a contract of employment, there is an active role being performed and it's over 16 hours per week then yes, you can make yourself redundant.

Obviously there can be some sketchiness about this given that it can be manipulated but considering it's due to a medical issue then I'd say it would be quite reasonable to close the Company and pay redundancy.

 

[Mr D]

Provided that there's a contract of employment, there is an active role being performed and it's over 16 hours per week then yes, you can make yourself redundant.

Obviously there can be some sketchiness about this given that it can be manipulated but considering it's due to a medical issue then I'd say it would be quite reasonable to close the Company and pay redundancy.

It would also be reasonable to pause trading and not pay redundancy if the problem is related to not being able to work on the business for a period of time.

 

[STDFR33]

Provided that there's a contract of employment, there is an active role being performed and it's over 16 hours per week then yes, you can make yourself redundant.

Obviously there can be some sketchiness about this given that it can be manipulated but considering it's due to a medical issue then I'd say it would be quite reasonable to close the Company and pay redundancy.

If the redundancy is medical related it’d may well be taxable under s393.