Jobseekers Allowance Help.

Legacy_user

Hi, I was self employed but just closed my business (just a small ebay business). I have now applied for jobseekers allowance and have an interview on Monday with the Jobcentre to finalise this. One thing they have asked to see is my business accounts from the last 12 months. I just wondered if anyone knew why they need to see my business accounts? I see no reason for it, I am unemployed, seeking work, its pretty simple, I am eligible for jobseekers allowance so why do they need to trawl through my personal business accounts?

Thanks.

DCFC79

I dont know the reason myself butif they're asking for the accounts why not take them you

milfield

To see what your income has been and therefore what level of savings you may have.

Savings are looked at on a sliding scale; if you are claiming Income Based JSA as opposed to Contributions Based JSA then too much in the bank and you get no JSA, just your NI contributions paid. Anywhere along this sliding scale and you may get a reduced amount of JSA to the full amount.

Self-employed people sometimes are not entitled to JSA (Conts Based) as they may have not paid enough Class 1 contributions, so would need to look at JSA (Inc Based) - too much in savings and the scenario is as decribed above. This will help determine your eligiblity for JSA.

System

milfield wrote: »

To see what your income has been and therefore what level of savings you may have.

Savings are looked at on a sliding scale; if you are claiming Income Based JSA as opposed to Contributions Based JSA then too much in the bank and you get no JSA, just your NI contributions paid. Anywhere along this sliding scale and you may get a reduced amount of JSA to the full amount.

Self-employed people sometimes are not entitled to JSA (Conts Based) as they may have not paid enough Class 1 contributions, so would need to look at JSA (Inc Based) - too much in savings and the scenario is as decribed above. This will help determine your eligiblity for JSA.

I am claiming for Contributions based JSA. I have paid NI for the past 3 years since coming out of uni so surely that is enough contributions. I am no longer self employed and therefore have no income. In the online application it asked me if I had more than 16k savings and I said yes...although I don't think this will stop me from getting JSA unless as you say I am after the income based JSA which I'm not. Why do they need to see my business accounts when I am only claiming contributions based JSA?

Fiddlestick

dburford9 wrote: »

Why do they need to see my business accounts when I am only claiming contributions based JSA?

You need to prove that the business has no cash.

Just because you aren't trading, that doesn't mean that the business doesn't have 50k in cash that could be used to maintain you on a wage until you find more work.

Just show them the accounts and stop worrying over it

milfield

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Employedorlookingforwork/DG_10018757


There are two types of Jobseeker's Allowance, 'contribution-based Jobseeker's Allowance' and 'income-based Jobseeker's Allowance'.

Contribution-based Jobseeker's Allowance

You may be entitled to claim contribution-based Jobseeker's Allowance if you have paid enough National Insurance contributions (NICs). Jobcentre Plus can pay this for up to 182 days. Generally, self-employed contributions will not help you qualify for contribution-based Jobseeker’s Allowance.

Income-based Jobseeker's Allowance

This is based on your income and savings. You may get this if you have not paid enough NICs (or you've only paid contributions for self-employment) and you're on a low income.

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You have been asked to take the information along so you need to do so - if you don't it may delay your JSA claim.

System

I don't really care about showing them, I just did not understand the reasoning behind them needing to see them and still don't.

This has confused me even further...

Why do they not take into consideration self employment NI contributions ?
Why does it matter if I have loads of savings, so I suffer because I decided to save my money instead of waste it on alcohol and fancy clothes? And the chav down the road has no problem getting JSA because he has no saving because he spent all his money on heroin, how does that make sense?

milfield

It is the legislative framework which sets out the regulations so I cannot tell you why self-employed NI conts are treated differently I'm afraid.

Maybe this link will help?

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/NationalInsurance/IntroductiontoNationalInsurance/DG_190048


The need to show the information to the Advisor at your New Claims interview is to help them assess what benefit you are entitled to receive, and if it is Income based rather than Conts based whether it is affected by any savings you may have.

Hammyman

dburford9 wrote: »

I am claiming for Contributions based JSA. I have paid NI for the past 3 years since coming out of uni so surely that is enough contributions.

Hate to tell you this but if you've only been self employed, you've only been paying Class 2 and Class 4 NIC which DOES NOT entitle you to contributions based JSA.

Hammyman

dburford9 wrote: »

Why do they not take into consideration self employment NI contributions ?
Why does it matter if I have loads of savings, so I suffer because I decided to save my money instead of waste it on alcohol and fancy clothes? And the chav down the road has no problem getting JSA because he has no saving because he spent all his money on heroin, how does that make sense?

It doesn't and no, its not fair. Welcome to Britain.

System

Hammyman wrote: »

Hate to tell you this but if you've only been self employed, you've only been paying Class 2 and Class 4 NIC which DOES NOT entitle you to contributions based JSA.

I was employed by a company and was paying class 1 NI for 2 or 3 years up to the end of June 2010 so surely this would make me eligible?

I was also self employed from March 2010 (at the same time I was employed by a company) so I think might have been paying both Class 1 and class 2 at the same time but I'm not too sure about that.

Well I did my application yesterday and they phoned me up and I have got an interview on Monday so surely they have seen nothing wrong with my application and should mean I will get JSA especially as they have asked me to bring along a CV and want me to bring proof of who I am and went on about literally signing something to say I will look for work etc. So I expect I am ok otherwise all those years savings for a deposit will start getting eaten up. And I have helped Tulisa and her 5 kids in the council house down the road with all the NI payments I have paid but when I need some help I get nothing. That would be a true screw over. I'll have to demand all my NI money back.