Resign as proprietary director, rejoin as Class A employee

T

trg

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Hi,

Is it possible to resign as proprietary director (and be replaced by relation) and rejoin the company as a class A employee?

I ask because I have been told by friend in social welfare that I am not eligible for the means-tested jobseekers assistance and money has just about dried up.

I assume we could back-date to start of year and hang on until the required 39 contributions have been reached at which point we could receive the jobseekers benefit.

Thanks
 
I'm not sure if this is possible, but remember the company will have to Pay Employers PRSI if you are class A
 
The SW may maintain that if you have control over this relative, you would still be "self-employed". I think you have to check with the Scope section of SW.
 
Is there anyone else in the company that would fit the bill as proprietary director?

Will your function in the company actually change?
 
Just copied this from the jobseekers board, looks like even if you did this it would be 2012 before you would qualify? (looks like it to me anyway!!) Sorry the news isn't better.

How do I qualify for Jobseeker’s Benefit (‘stamps’) payment?

First of all, you must have 2 years PRSI paid: 104 weeks contributions. Then, you must have at least 39 weeks paid and/or credited in the governing year; in 2010 this is 2008. For every week that you work you get a 'paid' contribution. For every week you claim a Social Welfare payment you get a 'credited contribution'. You must also be looking for full-time employment, as well as being capable of and available to work to claim Jobseeker's.
 
my understanding is that a proprietary director is a person who holds more than 15% of share capital. How can you resign without having to give away that share of the business?
 
Niall M said:
... How can you resign without having to give away that share of the business?
Click to expand...
Resign as a director once a replacement is in place, but still remain a shareholder. A director need not necessarily be a shareholder and a shareholder need not necessarily be a director. The new status would (hypothetically) be as a "shareholding employee"
 
All,

Thanks for your help to date. to answer the query about employee verus self-emplyed status i am satisfied from studying the welfare website that i would be termed as an employee. I'm not allowed post URL's yet but its in welfare website under employment status code of practise and the 2 years query - this is 2 years contributions since 1st starting work and 39 in the current tax year, again no link i'm afraid but its in jobseekers benefits - rules section of welfare website so with fingers very much crossed it appears that the Welfare side of things seems to be in hand.


However the CRO side of things would then need to be kept in order as well and from your posts there doesnt seem to be any problem as long as i am not a proprietary director.
Can i simply transfer my 1no. €1 share to the new director?
Is there any stamp duty implication for this?
 
Stamp duty is calculated on the net assets. It shouldn't be too much.

My opinion is that you will not qualify. Scope will definitely investigate this claim when you put it in and will check accounts etc filed with the CRO. How will you backdate this change??

Patrick
 
Have you any friends who are self employed or Prop directors. Maybe they could employ you in their business and you could do the same for them. That way you would be both entitled to claim your paye credit and you would both be getting the benefit of a class A contribution.
 
xxx said:
Have you any friends who are self employed or Prop directors. Maybe they could employ you in their business and you could do the same for them. That way you would be both entitled to claim your paye credit and you would both be getting the benefit of a class A contribution.
Click to expand...

Revenue are clamping down on this, i have seen in on revenue audits clients have had. They want to see that people emplyed actually physically on site, on timesheets, etc....prob for this reason.
 
How many jobs keep timesheets. Would be easy enough for the person to be beavering around in the back ground the day of revenue audit if need be. I think revenue would get it awful hard to prove. I dont think there is any law about paying wages by cash.
 
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