In a bit of a mess - advice would be good.

Mazzy_2

Hi, this is my first post here, I will try and keep it simple in explaining our situation.

My DH has worked for the same company for many years, as the sales and customer service manager, he is 57, the company has now gone bust due to the MD using company money for his own use. Where it gets complicated, is that my DH was actually listed as self-employed and paid that way, so he's not due to any redundancy payout as he is actually listed as self-employed, even though he only worked for that same company for all those years, and no other company, that was the agreement made between him and his boss.

The situation now is that he is trying to set up a new company with the help of others, as the core business was sound, and the clients are hovering waiting to see if they want to stay with us or go with the competition, the company only failed due to the MD using money he shouldn't have for his own use, and when this all came to light, it was a big shock for everyone involved. :mad:

The problem we have is that we won't know if the new business will take off or how long it will take, so don't think he can claim unemployment benefit if he is working to try and set up the new business? I wonder if anyone could tell me if that's right? Also, we have enough money to last us a month or two but then the poo will hit the fan, as we also have a lot of debts, so are now looking into the IVA option, but that might be a problem because we don't actually know what our income will be, depending on whether the new company actually works out or not, so it's all very confusing and stressful. We are going to ring the CCCS at some point, but thought I'd post here just to see if we could get any advice. Oh, should mention that DH has a pension from his earlier job in the civil service, which is around £5,000 a year, and I also have a small pension from medical retirement, Incapacity benefit and DLA which amounts to amount £10,000 a year in total.

Thanks for listening, wasn't sure whether to post this here or on the Debt forum, but thought I'd start here and go from there. Any advice gratefully received.

Fosseboy_2

Mazzy wrote: »

Hi, this is my first post here, I will try and keep it simple in explaining our situation.

My DH has worked for the same company for 19 years, as the sales and customer service manager, he is 57, the company has now gone bust due to the MD using company money for his own use. Where it gets complicated, is that my DH was actually listed as self-employed and paid that way, so he's not due to any redundancy payout as he is actually listed as self-employed, even though he only worked for that same company for all those years, and no other company, that was the agreement made between him and his boss.

The situation now is that he is trying to set up a new company with the help of others, as the core business was sound, and the clients are hovering waiting to see if they want to stay with us or go with the competition, the company only failed due to the MD using money he shouldn't have for his own use, and when he died early this year, this all came to light, it was a big shock for everyone involved. :mad:

The problem we have is that we won't know if the new business will take off or how long it will take, so don't think he can claim unemployment benefit if he is working to try and set up the new business? I wonder if anyone could tell me if that's right? Also, we have enough money to last us a month or two but then the poo will hit the fan, as we also have a lot of debts, so are now looking into the IVA option, but that might be a problem because we don't actually know what our income will be, depending on whether the new company actually works out or not, so it's all very confusing and stressful. We are going to ring the CCCS at some point, but thought I'd post here just to see if we could get any advice. Oh, should mention that DH has a pension from his earlier job in the civil service, which is around £5,000 a year, and I also have a small pension from medical retirement, Incapacity benefit and DLA which amounts to amount £10,000 a year in total.

Thanks for listening, wasn't sure whether to post this here or on the Debt forum, but thought I'd start here and go from there. Any advice gratefully received.

Oh dear....what a sorry tale. Sorry.

No use crying over spilt milk but I am surprised he and Co got away with 19 years self employment. He could ask the receiver to pay notice/redundancy on the basis that he was de facto employed but if it's gone to the Govt fund, then that will be a problem.

But self employed are not entitled to job seekers allowance.

Looks like his only choice is to try and carry on the Company and make a go of it before the Clients find someone else. It could be a great opportunity and what is there to risk that isn't already at risk?

See if the job centre will provide a business adviser for a start up.

Mazzy_2

ejohnstacey wrote: »

Oh dear....what a sorry tale. Sorry.

No use crying over spilt milk but I am surprised he and Co got away with 19 years self employment. He could ask the receiver to pay notice/redundancy on the basis that he was de facto employed but if it's gone to the Govt fund, then that will be a problem.

But self employed are not entitled to job seekers allowance.

Looks like his only choice is to try and carry on the Company and make a go of it before the Clients find someone else. It could be a great opportunity and what is there to risk that isn't already at risk?

See if the job centre will provide a business adviser for a start up.

Thanks for your reply, appreciate it. I'm not sure if the self employment was for the whole period, but certainly for the last few years anyway. There's no money at all left in the company he completely wiped it out and left it in huge debt to the point of over a million pounds. :mad:

DH is certainly trying his best to make a go of it, and has got an advisor who was a client of the old co who has many year's business accountancy experience, who is happy to get involved, they have a meeting next week with the other nominated directors so we will know a bit more then hopefully.