JSA and starting new business?

spykey_uk

Hi guys,

I am becoming unemployed at the end of this month and have been looking for work since I found out in March. I think it is inevitable that I am going to have to claim JSA for a few months as there is such a short supply of jobs in my field (I am a newly qualified solicitor).

Because I know I am going to go stir crazy at home, I was thinking of setting up my own business to keep myself busy when I'm not job hunting (I was thinking around half my day on each). The only problem is that I don't expect it to make much money at first (if any) so I can't afford to do this if it stops me from claiming JSA.

Does anyone know the rules on this?

Thanks so much.

HappyMJ

If you spend less than 16 hours per week on your business idea and make no profit, you can still claim full JSA. When the business picks up and becomes viable then you can put everything you have into it and claim working tax credits for working 30 hours plus.

spykey_uk

Thanks HappyMJ! That's good news. I wanted to start it up and know that I won't be able to claim JSA when it starts making money but didn't want to leave myself with nothing to live on in the early days. That's so helpful!

u751904

I am in the same boat as you. I have been advised that after three months of JSA you can sign off and go onto a self employed 'scheme' that the Job centre is running along with the regional business link groups. You get £50 pw for 12 weeks. I would go to both the business link for your area and ask the Job centre. It used to have a 6 month waiting period but it has just been reduced to 3 months. Just in case someone says it is 6 months... good luck

spykey_uk

Ooh that's interesting. I think that the first few months for me will be building up a client base and getting my name out there so that would mean I could claim JSA and then look into that scheme after 3 months. Thanks u751904 - good luck with yours too!

Hammyman

Don't forget that you would qualify for Working Tax Credit and you can tell them your profit is quite low. My first year I told them I expected to earn £2000 with initial startup costs but due to startup costs I'd not accounted for, it ended up being a trading loss on paper of about £80.