starting a business and benefits

[coldmash]

Hi,

Currently im on benefits with 3 kids and im sick of it, I have a job idea, and have applied for princes trust they said they can help- the only fear i have is- will my benefits stop as soon as the business is set up as i wont really be making any profit until the loan from princes trust is paid off, and then we wont have anything to live on or pay rent, has anyone got any suggestions as to what i can do? or how the benefits would work?

thanks guys x

[Nystagmite]

You may be able to claim benefits if your income is low enough.

[jadeybags]

They work your benefits out on an average if you dont have set income. But you can definitely still claim benefits when you're self employed. What you can claim will depend on lots of things like if you are a couple, how many hours you work- under 16, or over 16 hours (JSA or Tax credits)

CAB should be able to advise you based on your details.

Go for it I say. Once you're up & running you probably wont need to claim them anymore. Bliss!

[terriersaregreat]

Hi, are you thinking of starting up a business. I'm not sure from what you said.

 

Are you aware of the fact that working tax credit is available for the self employed? You will also be able to claim housing benefit.

 

The Jobcentre helped a lot when I started up in business.

[flumps1976]

Book an appointment with your adviser at the JCP office to discuss this further as there is a new incentive for people going self employed, the full details hadn't been released when I was in work last week so can't give you any further advice sorry.

[Elliebes]

Go to the job centre with your idea the more information you have to tell them the better and they will make an appointment to see someone at your local Chamber of Commerce about your business idea. Im going on Wednesday. I was also told that I can still work in a job if I manage to get one during setting up my business but Im not so sure about this one! You can still claim JSA while your setting up your business. there is a loan and extra money on top of your JSA but I dont know for how long.

 

Obviously at this point Im a bit naive so I need to go to my appointment first.

 

Just wondering can you work as well as have a business? Say while I was running my business if and when it started up and running could I do temping work to earn extra money?

[Nystagmite]

Just wondering can you work as well as have a business? Say while I was running my business if and when it started up and running could I do temping work to earn extra money?

 

I don't see why not? Of course, it may cause problems depending on the hours.

[Elliebes]

oh right I didnt know this.....something to consider thanks!

[terriersaregreat]

I can help you here. Yes it is possible to be self employed and employed I did it for 3 years. It is fully accepted by WTC and Reveune and Customs. The money you earn is totalled as your income and when you complete your first self assessment that are questions which refer to this.

 

I am no longer employed but am self employed in receipt of WTC, HB and DLA.

 

It is important to notify the Rev and Customs immediately you start your business. You can do this by phone.

 

good luck

[Elliebes]

Thanks so much terriersaregreat! Its good to know I can at least get some temping work when I leave the nursery of JSA!

[Elliebes]

Update - Went along to the interview today with the Chamber of Commerce. Got told your business has to have 'LEGS' within 10 weeks or forget it. He said my business would have been to slow trying to developing a client base.

 

Also the loan that they offer you on the NEA is subjected to a CREDIT CHECK! Well how many people living on benefits are not going to have some sort of background credit problems? Not many.

 

When I told him my business idea his eyes glazed over and he said do it as a hobby or a background business. As well as having a mentor etc your benefits get cut by half during the 6 months your being supported. Im sorry to have to say this but its all a load of BS if you ask me. Apart from selling food on street corners what business can you get up and running in 10 weeks?? Clearly the criteria for NEA was not explained to me properly and the only thing I got out of that episode was a load of information leaflets and a pat on the head there there dear now run along! We dont want people with ideas like yours here because its not local and wont be developing this area as per jobs etc......! No offer of business networking contacts just a load of bumf based on a PLUMBERS business plan. NEA.....dont bother unless you can be earning within 10 weeks!

 

This is just another avenue to create pathetic organisations in the guise of trying to help the jobless.

 

rant over !

Edited April 20, 2011 by Elliebes

[terriersaregreat]

So sorry you had a rough time but do not let this deter you from going forward! Make an appointment with the Jobcentre and they will do a forecast for you which will show you exactly what your income will be. But don't make the mistake that I made:- I went to HB and explained that I was applying for WTC. No probs with that but there was a mix up with the WTC at first. Sorted that but thought that HB would know about the WTC. They did not and it got a bit nasty with an interview under caution as a result of an over enthustiastic investigator. It was a genuine mistake. Saw my MP who was brilliant.

 

You have to remember that WTC is part of your income for HB but not for Revenue & Customs.

 

I agree with you about starting out and the advice from the Jobcentre was that I would not make a profit in my first year. If you do go for it stay in touch and I'll help you with my experiences. The point about WTC is that it is a cushion until you get on your feet.

 

Anyway please, please don't give up. Have faith in yourself and see what happens with the interview.

[Elliebes]

Hi terriersaregreat... I have already been for the interview with the Chamber of Commerce today and was told they cannot help me so I wont get any assistance whatsoever. In other words they told me to sling my hook! Absolutely NO HELP whatsoever all because I wouldnt be up and running in 10 weeks. So I wont be on NEA and will continue on JSA.

[terriersaregreat]

Chamber of Commerce has nothing to do with working tax credit.

 

Don't quite understand sorry, are you saying without a grant can't start your business? You will get WTC/child tax credit if you have children, if you become self employed don't need to prove how much income you expect just tell them what you want to do. They are not judgemental. I think you'll find it far more helpful than JSA financially.

 

Just ask them to do a forecast or have a look on the website.

[Elliebes]

Thanks but I think you are totally confused as to what Ive been doing. LOL

 

In order to get put on NEA you have to have a business idea that has LEGS. I was told by the chamber of commerce that my business idea had no 10 week up and running LEGS.

 

So nothing has changed. Im still on JSA. I wont be getting help or qualifying for being on NEA. Thats it. Back to square one.

 

The job centre have done their bit referring me. I have to go back and tell them now that Im not eligible for any help from the chamber of commerce and so I have to continue to remain on JSA. With no further changes.

[terriersaregreat]

I am totally confused I wouldn't be in business in this present climate if I wasn't!

 

Why can't you move from JSA to being self employed?

[terriersaregreat]

hello coldmash are you out there?

[Elliebes]

Because I dont HAVE a business worth investing in by the NEA. Please go back and read and fully absorb my threads.

[terriersaregreat]

I am only speaking from experience. I went to the Jobcentre told them that I wanted to become self employed. They told me what benefits I could obtain. I am inreceipt of self employed WTC and have been since 2007. I did not have to prove the viability of my business. However I would suggest that you need to be patient in dealing with all aspects of self employment.

 

I was answering the thread to coldmash but happy to help anyone who needed help from someone who did "go for it!"

[Elliebes]

ok I see what you mean. At the moment my business is in the embryonic stage but could have done with the cash injection. It will take a while to grow legs.

[Guest jsa12]

a lot of people buy to sell on sites such as ebay,the plus point its absolute minimum outlay,the downside is dealing with paypal/and other unpredictable events that can occur.

 

taking on loans to start a business is a massive risk this is why they they may be less then enthusiastic about plans that are not certain but in life nothing is.

[sparkles2010]

I am about to go self employed this weeks after 18mths unemployed.

 

My advisor at the job centre was great referred me to shaw trust who help you get your business going and you also get a free grant of £500 which helps with materials.

[frank fist]

I am about to go self employed this weeks after 18mths unemployed.

 

My advisor at the job centre was great referred me to shaw trust who help you get your business going and you also get a free grant of £500 which helps with materials.

 

That'sounds great, got any more details about them please?