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Dividends and c-JSA
Hello,
Grateful for any input please. In the context where someone believes that they are not self-employed, but simply a shareholder of 50% of a company and receiving dividends, is there any argument that the dividends can be disregarded as it’s not earnings, or a private pension?
Secondly, if they do believe themselves to be self-employed, but dividends is the only income, is this still disregarded as it’s not earnings, but income from capital?
Thank you
Seems to me that the answer depends on what the claimant does, if anything, for their dividends. If they have the good fortune to receive them without doing any work they are just like any shareholder in a company and the income is not taken into account for C-JSA. But if they are in reality one of two people working in a business which has been set up as a company, it doesn’t matter how they pay themselves. The test is what is the net profit that the individual gets from their self-employment. (JSA Regulations 2013 reg 61).