Director of Limited company and UC claim

Discussion in 'General Business Forum' started by Era, Aug 7, 2020.

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  1. Era

    Era UKBF Newcomer

    19 2
    Hi,
    I am the director of a limited company. I have started 2 years ago and immediately registered my company with Companies House and HMRC.
    I have been working on producing a womenswear line, and since the incorporation date( March 2019) until January 2020 I have been busy creating, supplying fabrics and getting the first samples.
    When I filed my company tax returns it was obvious that the company had been profiting in negative-as all the cash injected was to support the expenses.
    When the lockdown was declared, my company could not continue producing the garments, nor sell them. Additionally, I discovered back then that I was also expecting.
    I tried to claim UC, but after more than a months I was told I was refused, as I was not registered for NI Contributions, no invoice was issued by the company, and the company had not been profitable at all.
    I tried contacting UC Helpline and get a revision which was yet refused based upon the fact that to them I was an Inactive person based upon my contributions and revenue. I found myself not being able to do anything, nor have any kind of help/assistance from the Government.
    Is there anyone else in a similar situation? Is there anything I can do at all to get some financial help?
     
    Posted: Aug 7, 2020 By: Era Member since: Sep 21, 2018
    #1
  2. Mr D

    Mr D UKBF Legend

    28,599 3,559
    Speak to welfare rights.
    I know of directors who have successfully claimed UC during lockdown due to them not actually being paid by the company prior to lockdown - hence could not be furloughed.

    For UC purposes we are usually treated as self employed. The income floor that has would suggest 6 months money - but based on weekly income over time.
     
    Posted: Aug 7, 2020 By: Mr D Member since: Feb 12, 2017
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  3. Karimbo

    Karimbo UKBF Legend

    2,088 215
    This is more of an issue with trying to claim UC without making any NI contributions in the past. Than a company director vs employee issue. You dont actually need to pay NI, you can be in the lower earnings limit where you don't contribute any NI but get the same benefits as paying NI.

    LEL details here: https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

    Not being rude, but how were you supporting yourself if you weren't even earning £120 a week?

    You may want to ask a forum with benefits specialists to see if there is something you can claim. Failing that, businesses are starting to slowly get back to normal so if you've made it this far without benefits, you should be able to grind through a couple more months.
     
    Posted: Aug 8, 2020 By: Karimbo Member since: Nov 5, 2011
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