LTD Company Director Without Contract Am I Technically Still Employed?

[John Dooh]

Hey Guys. My car Insurance company are giving me grief regarding a claim and i need to be carful what i tell them.

I still have my company registered at Company House. I'm the only employee as well as director. I was contracting as a CNC Machinist in Engineering. I lost my contract in April Due to Covid and i have not traded since then. Since then i have been claiming furlough from the coronavirus job retention scheme. This small amount of money was processed through the payroll every money as a salary.

I took a car insurance policy out in June and i was not trading at the time and i put on my employment details that i was a machine operator, i was expecting to get a job soon so i just put in what i normally would put in. My life went through a lot of really devastating personal changes and i had to move back to Scotland. My mental health took a dive and its only recently i feel ready to work again.

I am now trying to make an insurance claim and when i was on the phone i made a blunder and told them i was unemployed. I then tried to explain to them i was technically self employed but without a contract. They are now questioning my employment details.

Can you guys advise me on what i should tell them to try and make this less serious. Here is what they are asking below in the email they sent to me.

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Following your incident on 27/10/2020, it has come to light that you are Unemployed. In order to validate your policy, we require the following:

• Please can you confirm the exact date you became unemployed?
• If mid-term, please provide proof of disclosed occupation as Machine Operator, date covering inception (06/2020) e.g. wage slip/P.45
• If you are unable to provide this, please can you confirm why?
• Please can you provide the circumstances surrounding your occupation change to Unemployed?
• Please can you provide an explanation as to why the change of occupation was not disclosed?
• If you are in receipt of any benefits please provide proof of this, date covering inception 06/2020 unless change of occupation was mid-term in which case please provide proof of benefits from the original claim date.

 

[Newchodge]

Are you still on furlough? Telling them you consider yourself unemployed as you are on furlough should be clear.

 

[Newchodge]

Why would you say you are self employed? That is the one thing you obviously are not!

 

[mattk]

Why not go back to them and say you "mis-spoke", you're not unemployed, you're actually furloughed and here are the payslips to prove it?

One other note, you're not self-employed, you are an employee of a limited company you just happen to be the 100% shareholder of. This is not the same as self-employed, which in the eyes of HMRC at least is a sole trader.

 

[mattk]

Damn, Cyndy u fast.

 

[John Dooh]

Are you still on furlough? Telling them you consider yourself unemployed as you are on furlough should be clear.

Thanks for your reply. Im trying to avoid saying im unemployed as it might not help my claim.

Why would you say you are self employed? That is the one thing you obviously are not!

Thanks again. The problem is there are so many occasions when filling out employment details they dont have a choice for a limited company director and you usually have to select self employed. When you talk to most people they dont know what it is either so its easier to say self employed.

Why not go back to them and say you "mis-spoke", you're not unemployed, you're actually furloughed and here are the payslips to prove it?

One other note, you're not self-employed, you are an employee of a limited company you just happen to be the 100% shareholder of. This is not the same as self-employed, which in the eyes of HMRC at least is a sole trader.

Thanks for your reply. You have worded that very well. I can access all the payslips on Freeagent. I hope that will satisfy them.

Thanks for clearing that up if i have a chance in future i will say im a sole trader.

Much appreciated all the replies.

 

[Newchodge]

Thanks for your reply. Im trying to avoid saying im unemployed as it might not help my claim.



Thanks again. The problem is there are so many occasions when filling out employment details they dont have a choice for a limited company director and you usually have to select self employed. When you talk to most people they dont know what it is either so its easier to say self employed.



Thanks for your reply. You have worded that very well. I can access all the payslips on Freeagent. I hope that will satisfy them.

Thanks for clearing that up if i have a chance in future i will say im a sole trader.

Much appreciated all the replies.

YOU ARE NOT A SOLE TRADER. YOU ARE THE FURLOUGHED EMPLOYEE OF A LIMITED COMPANY

 

[DontAsk]

Thanks again. The problem is there are so many occasions when filling out employment details they dont have a choice for a limited company director and you usually have to select self employed.

If you really are employed by your company (did you run PAYE?) then you are employed. End of. The fact you are a director is irrelevant until someone asks.

 

[John Dooh]

YOU ARE NOT A SOLE TRADER. YOU ARE THE FURLOUGHED EMPLOYEE OF A LIMITED COMPANY

Many thanks clearing that up its very confusing to people like me but its clear to me now

If you really are employed by your company (did you run PAYE?) then you are employed. End of. The fact you are a director is irrelevant until someone asks.

Thanks for your reply. Yes i have been doing the monthly payroll myself on Freeagent. I wont mention being the director too but i do have payslips to prove this. cheers

 

[Frank the Insurance guy]

@Newchodge & @mattk are spot on.

As you were on furlough and have the payslips to prove it, you can rightly say you are still employed as a machinist, but currently furloughed. You are still employed by company xxx and can show them the payslips to prove it.

 

[John Dooh]

@Newchodge & @mattk are spot on.

As you were on furlough and have the payslips to prove it, you can rightly say you are still employed as a machinist, but currently furloughed. You are still employed by company xxx and can show them the payslips to prove it.

Thanks for your reply and for confirming the advice given i tell them with confidence i am still employed by a company as a machinist.

 

[paulears]

It really would help your metal health enormously to get yourself to really understand your status? I can see how you got stressed, but you were really silly to confuse legitimate furloughing through your own company as being unemployed or self-employed? It seems such an obvious thing.

I'd worry more that they'll think you are pulling a fast one and decline the claim? I'd get all this documented and available so you can defend your confusion solidly.

 

[John Dooh]

It really would help your metal health enormously to get yourself to really understand your status? I can see how you got stressed, but you were really silly to confuse legitimate furloughing through your own company as being unemployed or self-employed? It seems such an obvious thing.

I'd worry more that they'll think you are pulling a fast one and decline the claim? I'd get all this documented and available so you can defend your confusion solidly.

Thanks for your reply. They caught me unaware as i did not expect them to ask my occupation when trying to make a claim. I think your right they could be looking for an excuse to decline a claim. At least i can genuinely tell them i was confused about my status. I told them on the phone i was also furloughed but its now clear i cant be unemployed and furloughed at the same time. I will let you know what they say once i hear from them again.

 

[John Dooh]

Guys I have now been told by the insurance someone is coming to uplift my car on Tuesday so im happy to say they seem satisfied with the information i gave them and the payslips. So the claim is going ahead. Thanks to everyone who replied, it was very important i said the right thing and it seems to have worked. Have a nice day