Becoming self-employed, what happens if no income initially?

mumma2one

Hi!

I am currently claiming income based JSA but have a couple of ideas in the pipeline and thinking of becoming self-employed (no luck finding work elsewhere).

My only worry is what would I do financially if my business takes a while to get "off the ground" and I have little or possibly no income for the first few months? Is there any support out there for people in this situation?

Thanks.

aaronm_2

Self-employed needs courage and also money. Without money, you will find everything is so difficult at the first few months. As what you have mentioned, possibly no income for the first few months. So under such circumtances, you need extra money to get through the hard times. As a matter of fact, it is strongly recommended that you should do some researches before hand till you're certain that you may gain profits some day, otherwise, don't run a new bueiness of your own. Everything won't be so easy at first. But if you keep going, everything will be all right. To be wise, calm, patient, confident, etc, and you will be successful.
Hope you will have a bright future.

westv

When I was attending my "getting back to work" group discussion at the Job Centre yesterday the subject of self employment was brought up. The guy there mentioned about a £50 a week payment but that's all the information I can remember.

oneofthetrio

Yes, I have just looked into this. The job centre will pay you £50 per week for 16 weeks when you become self employed. You do have to take in receipts, invoices etc to prove you are setting up a business and be registered with the Tax Office. You don't have to attend the Job Centre every 2 weeks but every 6 weeks or so I think. Hope this helps you.

wontfallforit

mumma2one wrote: »

Hi!

I am currently claiming income based JSA but have a couple of ideas in the pipeline and thinking of becoming self-employed (no luck finding work elsewhere).

My only worry is what would I do financially if my business takes a while to get "off the ground" and I have little or possibly no income for the first few months? Is there any support out there for people in this situation?

Thanks.

Depending upon exact circumstances...

Working tax credits: available if you either have a dependent child and work 16+ hours per week, or are aged 25+ and work 30+ hours per week (self-employment can count towards these hours, of course). If your income is "zero", I think you may be eligible for around £49 per week (over 25, working over 30hrs).

Are you already on Housing Benefit, Council Tax Benefit, etc.? If so, there's no reason why these benefits can't continue, at least for the first few months whilst you find your feet.

Is there anyone down at the JC+ you can have a word with about this? Also, have a look at the HMRC website for info on self-employment, as well as tax credits.

Horace

Self employment is hard and working tax credits are low (less than dole money) but you can survive just about. Don't want to put you off but you will be without income for several months - not the first few months as you expect.

The jobcentre might not know anything so have a look at the HMRC website under self employment. Also speak to business link about setting up as a self employed person as they can give you a lot of free advice and say whether or not your propsoed business is viable.

Darksaviour69

oneofthetrio wrote: »

Yes, I have just looked into this. The job centre will pay you £50 per week for 16 weeks when you become self employed. You do have to take in receipts, invoices etc to prove you are setting up a business and be registered with the Tax Office. You don't have to attend the Job Centre every 2 weeks but every 6 weeks or so I think. Hope this helps you.

Sorry to bump an old thread, but I rang the job centre and they said that they have never heard of this. Its weird because I have heard a few people saying the same thing (well you can get it for 6 weeks) and I have seen it posted on a few different forums but I can't seem to findany info about it official gov site.

Darksaviour69

bump