Benefits with 100% commision only employment

xsupercarlx

Hi guys, I have a couple questions, hopefully someone can help.

1: Can you claim JSA if you are on a 100% commission only job? (As you may earn only £30 in commission for the week for example)

2: can you claim WTC if you are on a 100% commission only job (doing over the required hours for WTC)

I'm wondering how you would fill out a WTC form if you have no salary or wage to enter.


Any help would be appreciated.

real1314

1. No - you are not available for or actively seeking work if you are pursuing sales for the commission

2. No - you are not in remunerative work as you are not receiving a wage.


Incidentally, why wouldn't you be paid the minimum wage, as required under uk employment law?

nice try. :cool:

xsupercarlx

What do you mean by "Nice try"?

jamesmorgan

The only way it is legal to offer a 100% commission contract is if the sales-person is self-employed. This doesn't mean a contrived self-employment status, but a genuine one that passes HMRC criteria. If the sales-person is an employee then they have to be guaranteed a minimum commission equivalent to the minimum wage (ie they are effectively salaried at the minimum wage).

So if you are taking on a 100% commission role, you need to register as self-employed. You would be eligible for WTC, although note that with the move to universal credit you will be assumed to be generating income at least equivalent to the NMW.

xsupercarlx

jamesmorgan wrote: »

The only way it is legal to offer a 100% commission contract is if the sales-person is self-employed. This doesn't mean a contrived self-employment status, but a genuine one that passes HMRC criteria. If the sales-person is an employee then they have to be guaranteed a minimum commission equivalent to the minimum wage (ie they are effectively salaried at the minimum wage).

So if you are taking on a 100% commission role, you need to register as self-employed. You would be eligible for WTC, although note that with the move to universal credit you will be assumed to be generating income at least equivalent to the NMW.

Thanks for taking the time to answer. It's not for me, its for an acquaintance, they are not sure about taking the job but its their first and I am trying to find any incentive for them to do it so they can get some experience on their CV.

So if its 100% commission (ill have to ask to clarify this) they can get WTC but will have to be Self employed. Universal credit isn't an issue right now, I believe its starting up north and working its way down so shouldn't reach us (as in those in my area) till the 4th quarter, by then I would expect the person to have moved on.

jamesmorgan

xsupercarlx wrote: »

Thanks for taking the time to answer. It's not for me, its for an acquaintance, they are not sure about taking the job but its their first and I am trying to find any incentive for them to do it so they can get some experience on their CV.

Whilst I admire your friend's desire to improve their CV, I would advise some caution against this type of role. The few genuine commission only roles are designed for experienced sales staff who are self-employed and often work across a number of such companies. Most of the rest are scams that exploit the vulnerable. They may involve up-front costs that are never recoverable, unlikely to receive anything in the way of training or guidance, and may flout employment laws. At a minimum your friend should try to talk to current staff working in this role to find out more about the work.

Dunroamin

xsupercarlx wrote: »

Thanks for taking the time to answer. It's not for me, its for an acquaintance, they are not sure about taking the job but its their first and I am trying to find any incentive for them to do it so they can get some experience on their CV.

.

You have to be at least 25 to claim WTC.