It is not fully realised that it is possible to have a regular employment salary cheque and also claim a number of government cash benefits at the same time. Sometimes the benefits are not direct cash, but credits which are offset against your income tax liabilities. The end result being that you get to keep more of your income one way or another.
Obviously, the more you earn, the less additional government benefits income you will be able to claim for.
If your circumstances are right, it may be possible to receive certain cash or BIK (Benefits in Kind) additions from your employer and also some forms of benefit payment from the government or local authority funds.
The government is anxious to keep you in employment – even if on low remuneration- rather than not working and being in receipt of the full payments from the benefits system.
The same is true of being self-employed, though in many cases the actual rules are different. Together with the normal raft of welfare benefits, there are many grants available for new ventures – or even existing ones, which are only available to self employed, or to those who wish to change their status to that of being self-employed.
Distinction needs to be understood with reference to being a director of your own or other company, and that of being self employed. A director is most certainly an employed person – regardless of whether you or another concern own the company. If you are a director of your own company, you are NOT self employed.
Employers also are keen for you to stay with them, for there are many direct and hidden costs to employers in the onerous task of replacing employees. Certainly at the higher end of employee status there is ‘bargaining power’ to have BIK as part of the remuneration package, and good employers are always seeking ways to amply reward at less cost to themselves.
In many instances ‘benefits in kind’ methods give them the chance to do this. How much leverage you have with your employer depends upon your own ‘perceived value’ and the employer’s dedication to keep good staff. BIK are often a bargaining, or deciding aspect when a valued employee is being interviewed for work! There is a whole active industry built around ways to implement BIK within the regulations and laws set by government.
March 9th 2017
***Child Tax Credit - From April this year the ‘family element’ of £545 per year will be abolished.***
March 8th 2017
**MPs are calling for a halt to the accelerating roll-out of Universal Credit as the ongoing problems are causing undue and unnecessary hardship**
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