Income support for Director?

[astralIVXX]

Hi all, Any advice on this matter would be appreciated as the government website does not provide many answers!

I set up a LTD company with my partner February this year, neither of us took a wage until we had to (August) and since then have been paying ourselves on average £300 per month. This is obviously very low income and we are begining to really struggle. The company can not afford to pay us any more, we are literally only taking what we can afford to.

It looks as though I'm not entitled to working tax credits/income support as I'm under 25 and have no kids...

My theory is that I could resign as a director and claim JSA for a few months whilst the company pick's up, then reinstate myself when I feel ready to come off JSA. what are your opinions on this? I don't personally think it would be benefit cheating but I guess some people might see it that way.

JSA states that you can would under 16 hours a week and still claim, So could I become a part-time director?
Are there any other types of help for low income business owners that I might not know about?

I'm worried about how the business is going to do during the winter and would like to see what my options are and get the ball rolling now before we get into real struggle.

Any advice would be great
Thanks!!!

 

[StevensOnln1]

I believe that you need to be actively looking for work to be able to claim JSA. Have you thought about getting a part time job whilst you build up your business?

 

[estwig]

I did what you are describing.

Times where hard 4 years ago when my construction business, went belly up. I started an architectural business, which took time to get going, with a mortgage and kids to consider, I signed on. Declared 15.9 hrs a week as director of my company, drawing whatever it was that kept me under the threshold.

Did this for 4 months before signing off, applied for jobs, went on job training courses, whatever they wanted, all very soul destroying. But it did allow me time to work on building a business.

You do whatever it takes to keep things together!

 

[Moneyman]

Could the company offer you an internship or apprenticeship. That might sort it.

 

[businessfunding]

You can actually remain a director whilst claiming JSA, but you will struggle to explain it to them!

You are allowed to work a certain number of hours, the main point being that you are seeking work and are available for interviews etc.

As has been suggested, it might be better to get a part time job where you could actually build your contact base. Job Centres are very depressing places!

 

[estwig]

You can actually remain a director whilst claiming JSA, but you will struggle to explain it to them!

Why?

You are just working part time whilst claiming JSA, this is within their rules. The fact it is your company is irrelevant.

I did it for 4 months, declaring 14.9hrs of work every week, whilst looking for a full time job.

 

[businessfunding]

You are just working part time whilst claiming JSA, this is within their rules. The fact it is your company is irrelevant.

b.

I appreciate it is within the rules, but feedback I have had is that they struggle to interpret it - I guess you are as good as your advisor.

 

[estwig]

I appreciate it is within the rules, but feedback I have had is that they struggle to interpret it - I guess you are as good as your advisor.

I didn't have any problems and did it for 4 months, they didn't bat an eyelid.

 

[astralIVXX]

Thank you for the support everyone!
I've applied for JSA and have got an initial interview tomorrow, they've requested to see all sorts of things including company accounts etc so they shouldn't have a problem understanding why I need some financial help.
At least this was I can continue to grow the company over the winter without worrying about starving!

 

[beasty]

We place jobs with the job centre

Trust me, you if anything can possibly confuse these people it will (It maybe handy to bring crayons and illustrations, perhaps a piggy bank)

Those that had a smooth ride I consider you to be the equivalent of lottery winners in the civil service competence lottery

 

[estwig]

They didn't ask me for accounts, as far as I remember, it was over 4 years ago and I struggle to remember what I did yesterday!

All I did was declare 15.9 hrs a week, or whatever it was to be part time and still get JSA. I can't remember if I declared a tenner a week wages, or nothing at all.

I made my circumstances fit into their boxes, so the box got ticked and I got left alone.

 

[astralIVXX]

They didn't ask me for accounts, as far as I remember, it was over 4 years ago and I struggle to remember what I did yesterday!

All I did was declare 15.9 hrs a week, or whatever it was to be part time and still get JSA. I can't remember if I declared a tenner a week wages, or nothing at all.

I made my circumstances fit into their boxes, so the box got ticked and I got left alone.

Yeah that is basically what I've done on the application form. Working 14 hrs/week, reason: not enough work in.

I'll see how they handle my situation tomorrow, hopefully I'll have an understanding advisor... if there is one?

 

[Levi]

You can get the New Enterprise Allowance - Its the same rate as job seekers allowance, although you dont need to sign on - You can also get a grant of up to £1,000

 

[businessfunding]

You can get the New Enterprise Allowance - Its the same rate as job seekers allowance, although you dont need to sign on - You can also get a grant of up to £1,000

Nea applies if you are starting a business. You will need to attend courses or college and illustrate work you are doing on your plan

You will get jsa for 8 week and parachute payments for a period thereafter

You might be eligible for a loan (not grant) up to £2,500

 

[10032012]

Nea applies if you are starting a business. You will need to attend courses or college and illustrate work you are doing on your plan

You will get jsa for 8 week and parachute payments for a period thereafter

You might be eligible for a loan (not grant) up to £2,500

I wouldn't bother with the NEA, its hard for home-grown entrepreneurs to receive it.

Very much a bums on seat thing, I have heard stories that people who don't have that desire to run a business have been put on it whilst I know many more who could do with this support being refused it. You know - despite them treating you like dog muck - as they know its what you want ...think that if you have any merit of running a business that you will sign off tomorrow and do it... (better for the statistics) the others... sometimes used as an opportunity to get work-shy complainers into a new type of work... you know, the kind that says phrases like 'there are no jobs', 'i have applied for everything' and 'i have tried every kind of job without success' in a single conversation.

As previously stated Jobcentre workers are thick - you will get a knee jerk reaction... they understand their obligations to safeguard the public purse so when something doesn't make sense, its in defensive 'that guy is trying to rob us blind' mode. Sometimes its better to keep your mouth shut. Its only the income that is relevant. Adding the word director will confuse things several fold.

Being a director is a common law duty, it sounds better than it is most of the time, and to many might interpret as being a director for a multi-national company with millions in the bank. They are pathetic to think that might be the case. There is specific procedures for directors etc. and i think there is a separate form too.

It is not a criminal offence to fail to disclose that you are a director - doing this means you don't have to go through the other hurdles. For you its too late now. I think its partly related due to you getting an additional different NI class than normal employees but not applicable in your case. Perhaps the extra red tape is that they pay your directors class NI too? I cannot see that being the case though. Anyone can advise?

 

[businessfunding]

I wouldn't bother with the NEA, its hard for home-grown entrepreneurs to receive it.
?

Not in my experience. If you have a half sensible idea and a bit of motivation you will get on tithe scheme. I would go as far as to say that if you don't have what it takes to get on the scheme, you almost certainly don't have what it takes to run a business

 

[Vectis]

But, as has been said twice now, can't you get a part time job and fit your business in around this? You'll be expected to look for work whilst on JSA and take anything suitable which comes along. If you don't bother to look for work yet take the handouts many will consider you're cheating the system.