Going Self Employed when go off JSA

Can anybody help me please...

I am going self employed and have been on JSA Income for 7 months. My business needs a lot of prep to get customers ready for when I sign off and I cant afford to be without JSA initially - wife, 2 kids etc

Can anybody tell me at what point I need to sign off JSA please?

ie if I get a booking for services in October do I need to sign off when they make the booking, or when they pay me a deposit , or when I actually undertake the work for them in October?

Thanks

Comments

  • BigAunty
    BigAunty Posts: 8,310
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    If you are not actively seeking employment then you are not meeting the terms of receiving JSA, full stop.

    Other posters will tell you if you are entitled to any benefit run-ons when you sign off.

    There is a new Enterprise Allowance scheme of some type that allows and supports JSA claimants into self-employment. I don't know the criteria but you could google this or other posters might be able to unearth the info.
  • Pedent
    Pedent Posts: 150
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    If you're not a job-seeker, because you're spending your time on your self-employed business, then I'd have thought that you should declare yourself self-employed now. Although you'd lose JSA, you may qualify for WTC until your income picks up.

    Or are you still looking for work as well as preparing the ground for your business?
  • dseventy
    dseventy Posts: 1,220 Forumite
    Are you actively seeking employment now? As in applying for jobs and if you got offered you would take?

    If not then you already don't qualify for JSA.

    have you spoke to your adviser about your plans?

    D70
    How about no longer being masochistic?
    How about remembering your divinity?
    How about unabashedly bawling your eyes out?
    How about not equating death with stopping?
  • If you claim JSA jointly with your wife you can work on your s/e business for up to 24 hours a week (assuming still on low/no income), if yours is a single JSA claim then you can do up to 16 hours work and retain JSA. Although you still have to be actively seeking other work.

    If you have been on JSA for over 6 months (which it sounds like you have) you should speak to your adviser about the 4-week run-on of HB and CTB or mortgage help if applicable.

    You may also want to talk to Business Link.
  • When I went self employed some fifteen years ago, I began by using a similar scheme to the one hinted at above by Big Aunty. I cant post links yet so go on the HMRC website and search: Enterprise rehearsal scheme......... Good luck with it!
  • Mersey_2
    Mersey_2 Posts: 1,679 Forumite
    Remember that JSA can be advanced.

    So, eg if you were due to sign at your JobCentre tomorrow (18.09.12), you could sign off tomorrow; but, state that you wish your last day of JSA to be 30.09.12, as you're starting self-employment on 1st October.

    I realise this would only give you a 13 day window, but every little helps.

    You can register online in 2 mins via HMRC, although the law states you only have to so within 3 months of starting as a sole trader.

    Tel the Tax Credits Helpline on: 0345 300 3900 and they'll send you a an application form within 2 weeks. It can then take 3 weeks to process, so best to be aware of this.
    Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.
  • ALIBOBSY
    ALIBOBSY Posts: 4,527
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    OH is on the national enterprise scheme the same sort of scheme the others are taking about. It was all organised and arranged through the JC. OH was given a selfemployment advisor who was brilliant and through the JC and the chamber of commerce (who administrate NEA) he has been sent on a number of useful courses and given a local buisness contact as a mentor. The whole thing has been a great start and really helped with buisness plans and organisation. Definately worth asking about in the JC. When he registered with HMRC they offered him a local course on how to organise the books/tax issues as well. TBH can't praise the system enough, been a great boost to getting things up and running and getting off the JSA.
    To qualify you have to have been on JSA for over 6 months. You get £65 a week for the first 12 weeks and £33 a week for a futher 12 weeks. This payment is non taxable and is not included in tax credits income. Plus remember to ring tax credits and get them to adjust your award. They will need an estimate for earnings till the end of the tax year-where the buisiness plan comes in.

    Regarding benefit run ons you should qualify for 4 weeks mortgage payments or HB and 4 weeks council tax benefit. There is also the job grant of £250 you get after signing off (this is being stopped though so not sure if you will qualify). You can then claim council tax benefit on low income. our council gives you form to estimate earnings for the next 6 wks as well as confirming the earnings for the last 6. This means you get the help when you need it, but once things (hopefully) take off with work you start paying more and eventually go back to paying full rate.

    TBH we hvae been suprised how brilliant all the advisors and the system has been, the change over was smooth without any wait for the new payments to be set up. Without this we would have really worried about him going S/E as we are the same worried about paying the bills/feeding the kids etc.

    Hopefully this intital boost helps things get off the ground so we can get to a point where we won't need any benefits at all. Having spent years working and not having to claim benefits we have been suprised how helpful they have been and how much help there is. I would say get asking what help is available in you area.

    NB they did also offer the chance to apply for a buisness start up loan, but we didn't need to buy any expensive equipment or much stock to start up we decided we didn't want to start off in debt.

    Ali x
    "Overthinking every little thing
    Acknowledge the bell you cant unring"

  • Can anybody help me please...

    I am going self employed and have been on JSA Income for 7 months. My business needs a lot of prep to get customers ready for when I sign off and I cant afford to be without JSA initially - wife, 2 kids etc

    Can anybody tell me at what point I need to sign off JSA please?

    ie if I get a booking for services in October do I need to sign off when they make the booking, or when they pay me a deposit , or when I actually undertake the work for them in October?

    Thanks



    Well done on getting some work in these hard times. Give yourself a pat on the back - I know how hard it is.

    I'm in a similar position. I have been unemployed for nearly eighteen months - claiming JSA for seven months since Feb 2012. I have been job hunting and have made the decision to become self employed.

    I have spent the last two months writing my business plan, researching and developing my product. - All with the help of my advisor. I've been able to access business clubs and workshops at my local business chamber.

    I have an appointment for my NEA loan tomorrow and I'm hoping to sign off at the end of this week. Has anyone else gone through this process I could do with some feedback
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