Pension Credit & Savings

bigadaj

McKneff wrote: »

If he has been with the same company for 15 years then he is not self employed.
Do the company pay his tax, holiday pay, etc etc.

The do seem to be a lot of these odd arrangements around, it's surprising that Hmrc haven't caught up with the firms.

The husband of the administrator at my last job was a self employed sheet metal worker for a large firm. He was self employed, favourable for tax for him and for his employer, and all being done with Hmrc knowledge and tacit approval.

She did say that one of the employees had totally failed to pay any tax for around 15 years though, could actually have been father and son, and they ended up with a prison sentence for evasion. Still don't see how the large comoany avoided this though.

Mercedes55

Sorry if my first post was a bit misleading as I'm not very up on all this self employment thing. My partner was offered the job he was doing on the understanding that he paid his own tax and NI, so he didn't really have any choice but to be self employed and employ an accountant who suggested he become a Ltd Company.

The company did give him holiday pay and until a couple of years ago would pay him sick leave too. He is eligible for Pension Credit as he will soon be 64 and we've had someone round from the DWP to interview us, but it's now July and we still haven't had a penny, although we have been told we are eligible.

We've finally got the accountant to sort out the tax owed by the company but apparently as my partner worked till May he's been told he has to keep the company running until the end of the year.

I do find the Pension Credit really confusing and very slow too. They've based our claim on the money we had when my partner stopped working and as we've obviously not had any income since then it's gone to below the £10,000 threshold but our claim is being assessed on savings of £17,000 as that is what we had when we started the claim, although we did keep telling the DWP that a large chunk of that money was in the company account to pay for tax. I guess we will have to keep waiting and when we eventually get the Pension Credit we will have to let them know that our financial circumstances have changed.

How people manage if they have no money put by I really don't know

jamesd

Best to tell them about the tax and my comments in post 5 now rather than waiting for them to decide. It's likely to be easier to get an initial correct decision than to appeal against the wrong one that they will apparently be making if they don't allow for the tax.

Mercedes55

jamesd wrote: »

Best to tell them about the tax and my comments in post 5 now rather than waiting for them to decide. It's likely to be easier to get an initial correct decision than to appeal against the wrong one that they will apparently be making if they don't allow for the tax.

I did phone up the Pension Credit people to tell them our financial circumstances have changed and they asked us to send in all our bank account statements from the date we submitted our claim to now, so they will see on the business account statement that the tax bill has been paid and the account is empty and hopefully we may hear something from them soon.