Not entitled to a penny!

Oldernotwiser

zenmaster wrote: »

From the DWP website -

It's not exactly clear, is it?
.

It seems reasonably clear to me.

not_tonight_josephine_2

Wizo wrote: »

I am an IT contractor and have been out of work for over three month.

One of the most basic rules if you're an IT Contractor is to build up some money in your limited company to cover situations exactly like this - no contractor expects to be working 100% of the time (after all, you're a consultant, not an employee right?). That's one of the reasons why contracting is paid so well compared with permanent jobs - you charge a higher rate to cover the costs of running your business, including paying yourself when there is no work coming in.

Wizo wrote: »

Even though I have paid into the system for over 30 years I am not entitled to a bean?

You've already stated that you pay yourself largely in dividends, so you are obviously paying as little into the system as you can! I have no issue with this but you can't have it both ways.

What field are you in? How hard are you looking for a new contract?

Head on over to contractoruk.com, there's good advice on there plus a good contract search engine

Welshwoofs

Actually I think there is a problem with the way the Govt treats self-employed.

My OH was a plasterer for many years and in the recession the jobs were so few and far between and the number of 'cowboy customers' (those who get work done with no intention of paying) so great that he went under. He wasn't registered as a company, merely self-employed and he paid all the NI contributions he was asked to. When he had no work he was told he wasn't getting a bean in the way of benefits, firstly because he hadn't paid any NI and secondly because of my income.

I supported him 100% whilst he retrained for a different profession.

Oldernotwiser

Welshwoofs wrote: »

Actually I think there is a problem with the way the Govt treats self-employed.

My OH was a plasterer for many years and in the recession the jobs were so few and far between and the number of 'cowboy customers' (those who get work done with no intention of paying) so great that he went under. He wasn't registered as a company, merely self-employed and he paid all the NI contributions he was asked to. When he had no work he was told he wasn't getting a bean in the way of benefits, firstly because he hadn't paid any NI and secondly because of my income.

I supported him 100% whilst he retrained for a different profession.

Self employed people pay such a tiny amount of NICs, I don't really see how they can expect that to cover them for many benefits.

Welshwoofs

Oldernotwiser wrote: »

Self employed people pay such a tiny amount of NICs, I don't really see how they can expect that to cover them for many benefits.

Oh don't get me wrong, I don't have any problem with the theory behind what you're saying. What I mean is what when you sign up to be self-employed there really is no explanation that you're paying a lower rate if NI and that if you have no work there'll be no benefits. It should be transparent with an option to pay a higher rate so that one qualifies for benefits if times are hard.

cavework

Being self employed I pay voluntary NI. I also employ 6 other people for whom I pay employers NI contributions out of the money my company makes.
All that money I am 'guilty' of saving sort of pales in comparison

kelloggs36

If your wife works 16 hours per week, can you claim working tax credits?

ader50

Regardless of self-employment, I do believe the system is slightly unfair to couples/families,
As far as I understand the same individual who wouldn't be entitled to Contributions Based JSA due to not enough NICs would be awarded Income Based JSA if he/she were single, but as long as you have a partner and they are working more than 28 hours per week (no matter how low their wage) is next to impossible to get any JSA. If I am wrong in this please correct me, but that's how I understand it to be.

Maybe they should introduce more means testing, because I'm sure some people honestly cannot live with just one wage (again regardless of why they haven't got enough contributions).

AsknAnswer

It's not 28 hours per week, it's 24. In what way is it unfair to couples? It's exactly the same means test. If a single person worked over a certain amount of hours,or earns above the income threshold, they would not be entitled to JSA (IB) either. The savings thresholds are the same for a couple as they are for a single person, also. The reason the state will support a single person who is not working is because there is No-one else to support them. Why should the state support a person when they have a partner to do so?

Oldernotwiser

cavework wrote: »

Being self employed I pay voluntary NI. I also employ 6 other people for whom I pay employers NI contributions out of the money my company makes.
All that money I am 'guilty' of saving sort of pales in comparison

That's not really a typical scenario for most people who are self employed.