Declaring savings for the purpose of claiming non-contributory job seekers allowance.

RichardUK_2

When making a claim for non-contribution based job seekers allowance, an individual is required to reveal details about their savings so that their eligibility for job seekers allowance can be assessed. Such details include things like personal bank account statements, ISA savings statements and Premium Bond certificates and the like.

My question is; If an individual who is seeking to claim job seekers allowance is also the director of a limited company, then does that companies accounts and balances have any effect on what needs to be declared? That is to say does the balance in the said companies bank statements form part of an individual's savings and therefore need to be declared?

Regards
RichardUK

Vader123

My question is; If an individual who is seeking to claim job seekers allowance is also the director of a limited company, then does that companies accounts and balances have any effect on what needs to be declared?

Yes of course.

All of the limited company’s business assets will be considered ‘capital’ and added to your personal assets and capital when they are means tested.

Plus JSA is a taxable income in your circumstances.

Vader

CIS

A limited company is an entity in its own right - the directors do not own any assets of the company - the company owns the assests and the director is merely an employee.

Emmzi

my friend with a ltd company had to formally cease trading in order to claim JSA. May not be the same for everyone but if co. should be providing you with an income..?

rupee99

Being a director of a limited company does not, in itself, have any effect on a JSA claim.

There are two significant implications. I) It may imply that the applicant is not available for employment or is already employed. II) Does the applicant own any shares in the company and what proportion do they represent of the share capital of the company, and if so, what value do the shares have when assessing means tested JSA.

In answer to the original point the answer is no the company's assets do not have to be declared, but that is far from the end of the matter.