Yup you're proud of being on the dole aren't you.
I never took a dime from the ******* government
No. This might fly over your head at 33,000 feet, try to stay with me.
I'm self employed. You can do this in two ways. If you were just a sole trader, you pay Class D National Insurance on your profits (that's combined Income Tax and standard National Insurance). So say you owe £5,000 for the year, you need to pay the £5,000 plus half (£2,500) in advance for next year. So the profit you declared takes you over the threshold in receiving benefits.
I do the second way. I set up a Limited company and I'm sole director. I think that cost twenty odd quid. As I'm a director, minimum wage laws don't apply to me, I'm classed as self employed, but I'm also an employee of the business. So I just declare a wage where it doesn't attract Income tax, nor National Insurance. The government looks at that at says, "You're on a low wage so we need to top your wage up, here's £250 per month". Then per the tax rules, I charge the business rent for using office and storage space and 10,000 miles at 45p for using my car. Plus one or two creative accounting things. Each year I have to do an annual return for the business with companies house, that's £13 per year. Then because the government kindly put me on benefits, they pay me cost of living payments etc..
I work full time, and the government pays me too. Never claimed dole in my life. I was an employee from 1985 till 2004, thus having no control over my Income Tax and NI. Since late 2004, never paid Income Tax and NI ever since, plus the government started to pay me.
All legit, and all in the tax rules.
So the £500 per month contribution to health care, like I said, I'm nowhere near that and I have everyone else to thank for paying that for me because many won't have the brains to follow the best tax rules for their situation!!
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