Removing "unearned income"

[Albatross]

I have recently become unemployed after my company ceased trading.

It was simple to update my employment status with the CMS online portal, i.e. set my current status to unemployed.

However, I cannot remove the "unearned income" which was my dividends, paid monthly.

I have spoken to a case worker (twice) by telephone and they confirmed they would remove the income.

However, written correspondence states that they will not look into the variation until my annual review in mid October.

When I find employment, the calculation will be based on my new income plus the dividends, which I no longer receive.

Has anyone succeeded in removing this type of income when it is genuinely no longer received?

 

[bakedapple]

Does your company still exist as dormant or is it closed down? I also assume that a removal of dividends results in more than a 25% change in income?

Having previously read their internal guidance (as I too have a limited company and am struggling to understand the full rules, as are the CMS), they can only claim income from dividends if your company still exists and / or you remain a shareholder - so you would most probably have to demonstrate that it is fully dissolved and struck off to have the dividends removed - I think it takes 3 months to have the company formally struck off.

Ultimately, if the company is closed down and the variation is more than 25%, then this is then grounds for variation and, ultimately, tribunal.

 

[Albatross]

Thanks for the reply.

Liquidation began a few weeks ago but has not completed yet.

Removal of dividends does indeed result in more than a 25% change in income.

I no longer have any income from the company.

 

[bakedapple]

Worth trying to push the argument that the effective date is the date you applied for liquidation. Given them the documents now that you've applied, rather than leave it until it is fully processed. That way, even if they don't make changes until the liquidation is complete, the date you notified them is today and the effect is backdated.