Director on PAYE: Company may be closing

F

FlippedOut

Registered User
Messages
47
Hello,

Just looking for a little advice.

My wife is a director (loads on benefits there!!!) with 3 others. Unfortunately they have been hit very hard with the economy and after 30% wag cuts the past 3 months it is looking likely that they will have to close the business next month.

They are all PAYE and she is worried that she will not be entitled to benefits as she is/was a director.

Does any one have any experience of this sort of situation.

Many thanks,
 
What class of PRSI was she paying, if it was class A she will be grand and get the normal employee entitlement but if she is class S wont.
 
Thanks for getting back.

Yep, she's on class S! So does this mean no help, or just that she will have to be assessed?
 
Sorry not 100% but think she needs to be assessed.

Perhaps you should contact SCOPE section of Social Welfare to make sure that it is correct for your wife to be on class S. It is possible that it is incorrect and perhaps the company might be in a position to pay arrears etc. before closing.
 
Class S sounds right if she was a director. She is classed as previously self-employed for SW purposes and could only claim JA which is means tested.
 
If they are paying class S and means-tested, assets would be taken into account, but if they are genuinely going bust due to illiquidity and no assets chances are she'd qualify unless she'd made huge drawings and scurried them off to offshore investments and property. If she hasn't got savings or much assets she'll be ok.
 
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