benefits and self employment

Ally1205

Hammyman wrote: »

Give them the estimated profit you've come up with in your business plan (you did do one didn't you?).

Is a written business plan a requirement of receiving WTC (when entering into self-employment)? If so, how detailed does it have to be?

A

Hammyman

Ally1205 wrote: »

Is a written business plan a requirement of receiving WTC (when entering into self-employment)? If so, how detailed does it have to be?

A

No it isn't a requirement for receiving WTC. However what a business plan will do is force you to think about your business (for example actually going and doing some research to see who is doing the same in your area and what they charge etc) and as you go along, you can look back to projected sales etc and see how your expectations are in reality. For example, I projected sales would peak and drop at certain times of the year. Looking back, at least one of the peaks was a month out which meant demand outstripped supply and I should have bought more gear earlier instead of just keeping "tickover" stock levels.

If you decide to apply for any grants or a business bank account you are likely to be asked for a plan.

biagrin

I just thought of another question

if it cost £3000 in startup costs then does that mean i can earn £3000 before i am classed as making a wage? for example if i earn £3100 then does that mean that i have actually only made £100 wage in the eyes of the benefits agencies

Hammyman

biagrin wrote: »

my main questions are:

can i go self employed and only take an £80 a week wage? (by doing this it would put us on a low income and allow us to carry on getting some benefits)

No you can't.

I just thought of another question

if it cost £3000 in startup costs then does that mean i can earn £3000 before i am classed as making a wage? for example if i earn £3100 then does that mean that i have actually only made £100 wage in the eyes of the benefits agencies

BINGO!!!

Your profit is your income less expenses. Remember you claim mileage for the journeys you do in relation to the business, even down to the post office or the printers, and you claim everything possible even stamps! With the setup costs also deducted, you might only just break even this year or maybe earn a few £k. You can claim WTC and tell them your income is what you've got already in IS plus what your projected profit is - I really wouldn't say its going to be more than a couple of thousand before the end of this financial year. If you get DLA you can also claim the Disabled component of WTC which is worth £5k alone.

Your partner can't continue to claim IS.

HOWEVER there are return to work benefits available, especially if you're the DLA claimant, such as Return To Work Credit if its still running.