Advice on benefits when going self employed

daisy_chain9

My partner is currently claim JSA (joint claim) and has been for months he has been unable to get back into work so we have been looking at him going self employed, starting own business.

However if he does that then for the frist 6-12 months any money he makes will have to go for tools so he not be able to take any wage even though he will be working more then 30 hours a week so he cant claim JSA.

currently the house hold income is around £170 plus housing benefits (including what we get for our 2 year old son)

When I look it up online if he is working we loss £100 JSA but gain £80 working tax credits. (per week)

This will leave us £20 less then what the goverment say is the min you can afford to live on.

Does any one know what benefit would make up last £20 that would bring us up to min standard that the gov say you can live on in the uk.

(I dont think we can claim income support because every thing I have read says that income support is only for those working under 16 hours a week and on low income)

Any ideas?
Thanks
daisy chain9

fuzzball172

Is there no room in the budget from his self employed income to find the extra cash. What sort of tools does he need that it will take 6-12 months of income to pay for?
Lee

Horace

If you are on low income and working 30+ hours a week you may be entitled to working tax credit - this is (for me at least - as I dont have kids) less than JSA and I applied and got a class 2 NI exemption.

Maybe doing a few mystery shops may bring that money up?

What kind of tools will he need for his business? Has he spoken to Business Link and received free advice from them about setting up a business?

daisy_chain9

Thank you very much for the advice I have been on the entitledto web site and it says that we will only get £86 Working tax credits which is what would make up to £20 short of what we can live on. However after reading your messages I think I will go into the jobcenter and see if they can do the full sums on there computer maybe I am missing some thing on the form.

The business will be to start off building mobile custom wiring looms, servicing and problem solving all on classic cars and bikes. However we have done some research and we hope to be able to carry on into full restorations soon after, which is why there is so much budget for tools etc.

I will talk to business link ask about help and grants, though every body the jobcenter has asked us to see so far can only offer loans hopefully business link will be more helpfull.

Thank you for your advice
Daisy chain9

paulwf

Perhaps you could look at getting a loan over 3-5 years so that you won't be putting all of your profits in year 1 into paying off your start up costs? If you've been offered loans that's a good sign...a viable business should be able to pay back its start up costs.

Christmas temp jobs should be coming up soon, my advice for now would be for both of you to apply for everything going (some are part time or nights so you may both be able to work and provide childcare if you get lucky with shifts). Christmas jobs sometimes lead to something permanent (usually part time) which could help cover your household costs reducing the pressure on the business.