I need some advice on becoming self emloyed from JSA

M1keLR

Hi,

I need some advice asap about my situation.

Im 20, been on JSA for 12 months +. My wife is currently on incapacity benefit, we also recieve Child Tax Credits & child benefit (i think thats what there called) for our 2 month old daughter.

Im wondering what the best approach is to head toward becoming self employed & what happens to other benefits we recieve. I do not want to literally leave JSA and attempt to step straight into self employment for the obvious reason of my income. We cannot afford for our income to drop as we are only just coping in our current situation.

(Its not business advice that im after here, its just information regarding my JSA & our other benefits & where they would go from here.)

RedSoleShoes

Sorry but I think going self-employed in your situation is not a good idea. Unless you have a REALLY good business plan and plenty of back-up money, you will find it a massive struggle.

I really think your best bet would be try and get an employed position. Get some money behind you and then move into self-employment in the future if you still want that.

I cannot answer about which benefits you will lose but if you are keen to work then self-employment is not the answer in your position.

(and don't have any more kids until you are in a better position financially!)

Horace

Ask at the jobcentre about the Flexible New Deal (I think that's what it is called) for Self Employment - that way you can set up a business and still have the support of the jobcentre (your JSA becomes a training allowance). The programme will show you how to write a business plan etc. I know that you used to be able to test trade for 6 months but I am not sure if they do that any more. Should you decide after your test trading period to continue with your self employment, you can claim Working Tax Credits (you will get more as you have a child). I don't know how it will affect your wife's incapacity benefit though.

Self employment is hard work and expect not to get any work for the first 12 months..I have been self employed for 12 months and it is only now that things are coming together and I am getting paying customers.

You may also be able to get help from The Prince's Trust as you are under 25.

simonleblank

You are probably entitled to a £1000 grant from c of c. There is also a grant available from princes trust for under 23's. You do not have to stop claiming jsa until you get paid from your self employment
HTH

Hammyman

M1keLR wrote: »

Hi,

I need some advice asap about my situation.

Im 20, been on JSA for 12 months +. My wife is currently on incapacity benefit, we also recieve Child Tax Credits & child benefit (i think thats what there called) for our 2 month old daughter.

Im wondering what the best approach is to head toward becoming self employed & what happens to other benefits we recieve. I do not want to literally leave JSA and attempt to step straight into self employment for the obvious reason of my income. We cannot afford for our income to drop as we are only just coping in our current situation.

(Its not business advice that im after here, its just information regarding my JSA & our other benefits & where they would go from here.)

Easy this: Speak to a New Deal advisor. There are several things available - the first being a one off payment to sign off - a kind of bribe - and there are some schemes that'll pay you a fixed amount for a number of weeks. I got £40 a week tax free for a year when I went off ESA to SE.

Secondly, phone up tax credits, notify them of a change of circumstances and give them an estimate of the profit up to 5/4/2011 and the hours that'll be worked. That's net profit after expenses, not total takings. I told them £2000 for my first year but it ended up being a £88 trading loss on paper even though I never actually lost money on anything I sold and the books are completely straight.

M1keLR

Thanks for those replies so far. I had a brief word with one adviser this afternoon, IIRC he said that one of those options is that i am entitled to £50 per week (which sounds like what you said Hammyman)

Anymore advice is welcome.