benefit question - need advice

goffy63

Hi, I think Im in a bit of a pickle and would really appreiciate some sound advice on this one.
I have been claiming housing benefit for a couple of years and have recently gone onto jsa as my child reached 12 years old.

I have received a letter from the job plus, customer compliance explaining that they need to see me. I rang them up and they would only tell me that someone had made an allegation about me. They are coming to see me on monday.
Now I have racked my brains as to what this could be about and it has dawned on me!

About a year ago my father started a company and as he needed two directors, he asked me to be one. i said yes and became a director and that was all my input was. He does all the work, all the accounts and runs the business. He put in the money to start it.

I have done nothing else, I am not employed by the company, have never been paid for any work whatsoever and the company accounts show this. In fact my father has not even taken a wage as the company is in its first year and growing.
Where do I stand as I have not informed the benfefits departments that I'm a director.
Thanks in advance.

Vader123

You need to know the allegations before you can a)worry and b)mount a defence.

It could be anything! Where you claiming as being single and not? Cash in hand? Savings?

Until you know theres noting much you can do.

Vader

alwaysonthego_2

You should have really informed them! All you can do is be honest with them and explain your mistake. You may need to prove you do not work any hours and do not get any income and why you agreed to be a director.

They may sanction you or ask you to pay back any money you have recieved.

goffy63

I definatley dont have savings, i do have a boyfriend that lives 2 hours away and comes to see me at weekends. I've not received any cash in hand either.

Can you explain to me what 'sanction' means?

Mum2twins98

Sanction means they either take away your benefit or stop it for so long

absent_dad

http://www.contractorcalculator.co.uk/contractor_claim_job_seekers_allowance_ltd_company.aspx

Can limited company contractors claim?

The short answer is yes, a limited company contractor who is a company director and shareholder can claim JSA. They must meet the eligibility requirements and ongoing conditions in the ‘Jobseekers Agreement’ that has been agreed with Jobcentre Plus, which administers the JSA scheme.

The key point for limited company contractors to bear in mind is that their limited company’s business assets will be considered ‘capital’ and added to their personal assets and capital when they are means tested. Until combined funds and capital in the business and held personally fall below £16,000, the contractor will not be able to claim JSA.

The question now is...How much is your company worth?

goffy63

I have called my dad and asked him how much the assets are worth, the company does not have any assets as such, no company cars, about 500 in the bank and he works from home. There is some stock and he says its worth less than 1000 pounds so certainly well below 16,000

absent_dad

Sounds OK but the burden of proof here will be on you...In other words you are going to have to show this. Audited accounts, bank statements etc. Being a director carries duties and responsibilities, same as say putting your name down on the log book of a car, if there is a speeding ticket for the car and you cannot show who was driving at the time...guess who gets the fine?

Be ready with all the information even if it is over something else, you may be lucky and just away with a telling off.

Good luck

goffy63

many thanks for all your advice it really has helped me. I know not telling the benefits was wrong so will do that as soon as possible and i know that means a new assessment but that is fine. I've had my dad email me a copy of the accounts. They are only for the first year as its a new company but to be honest im rather impressed with them, he has noted everything to date to the penny. He said he will make sure he is here when they come to see me. thanks again everyone, much appreciated!!

kingfisherblue

I'm on IS and I have been a company director and charity trustee for eight years. I do this voluntary and when I first claimed, I informed the JC+. They requested a letter from the Chair to confirm that I do not get paid.

Apart from not having told them, it shouldn't be a problem if you can prove that you have not received any monies from the company.

goffy63

many thanks for your reply kingfisherblue, thats great. I can prove without doubt i have received no monies. thanks again, goffy63