wanting to start a business - benefit questions

gaogier

Hello

I worked, although not a great deal a few years ago.

I was told I needed a few major operations which would make me bed bound for 6 months at a time.

So far, I have had 3 operations, and due for the 4th.

I currently get DLA and JSA.

I have studied and studied, although I want to go to college and learn about running a small company, I spoke to specialists who said that I can't earn money due to some complications.

Basically, if my "business expenses are £400 per month, I can make £20, and every £1 I make after that, I lose of the DLA/JSA making a loss of £380. Surely this is something that should be profit? Right, but not according to JC or the other specialists.

My original plan was to get a part time job and get it running, but the way I am, this is looking less likely for at least 1-2 years due to waiting times for the operation as its 3-6 months before I get on the waiting list, then 6 months recovering, then physiotherapy.

Am I allowed to start a business on JSA/DLA or do I need to "switch" to a different benefit, if so which? I am only 22, been out of work/college since the age of 18. On a good day, I can walk 500 steps without falling, on a bad day, no more than 10.


What benefits should I be on to start a company?
If its a Ltd, and I don't take a penny, and work about 5 hours per week, does that count as work?


I basically want to go into the Computers/IT/Web Development industry, of which the web side has increased buy about 50% since 2007.

DX2

gaogier wrote: »

Basically, if my "business expenses are £400 per month, I can make £20, and every £1 I make after that, I lose of the DLA/JSA making a loss of £380. Surely this is something that should be profit? Right, but not according to JC or the other specialists.

Am I allowed to start a business on JSA/DLA or do I need to "switch" to a different benefit, if so which? I am only 22, been out of work/college since the age of 18. On a good day, I can walk 500 steps without falling, on a bad day, no more than 10.

DLA isn't an out of work benefit, you can work and still claim DLA.

karenx

Plus if you arent looking for work you shouldnt be on JSA

gaogier

I have contacted the Job Centre and spent nearly £200 in phone calls to them... its a nightmare to get hold off.

They are happy for me to be on JSA even though I am not able to look for work. I thought I should be on something like Incapacity.

I thought that DLA wouldn't be effected, but the guy at PMCI said it would.

karenx

JSA stands for Job seekers allowance, its a benefit payable for people looking for work. This you are not and when you go to sign on you need to provide proof you have been looking for and applying for jobs.
I really dont think the jobcentre are happy for you to be recieveing JSA but not actually looking for a job!

Adereterial

Ask your Jobcentre advisor about the New Enterprise Allowance, if you're claiming JSA. It includes a small allowance, access to a business loan and mentoring and support.

You'll may also be able to claim tax credits if you're self employed. You can continue to claim DLA too. It's only your JSA that will be affected by earnings.

Go into the JCP and ask for a Better off Calculation, that will give you an idea of how much you'll earn.

gaogier

When I first went on this, I meet this woman who wanted to know the "progress" I was making, and she knew I wanted to start my own business and she put down that I am looking to start my own business and left me on JSA as I was "looking for work".

They got business link to contact me, along with PCMI, and other places to work with me over the years. All went well up until the government cuts, however Business link still contact me.

I have looked into the New Enterprise Allowance, however it will not be available to me until April 2012, thats 1 year away.

pennyforthem

Not available for a year well thats handy isn't that when you said you would have your last operation by !?
I know, I have had the same problems with getting correct information from them myself. The only thing they seem interested in is grabbing all the money that comes in and not leaving any to run the business ! There was a woman on benefits on dragons den that had thousands of pounds turnover !

You should look up Sure Trust ? They seem to like to pay for courses you should be able to find one that is study at home and self paced, that way you will be up to speed on business when you have recovered from your last operation )

DX2

gaogier wrote: »

I have looked into the New Enterprise Allowance, however it will not be available to me until April 2012, thats 1 year away.

Why are you different to everyone else in the UK?

New Enterprise Allowance (NEA)

On 5 October the Secretary of State for Work and Pensions announced that the Government will give extra help to unemployed people who want to start their own business, through the New Enterprise Allowance (NEA).
NEA will be available to Jobseekers Allowance (JSA) customers who have been claiming for 26-weeks or more.
Participants will get access to a volunteer business mentor who will provide guidance and support as they develop their business plan and through the early months of trading. Once a customer can demonstrate they have a viable business proposition with the potential for growth in the future, they will be able to access financial support. This will consist of:

• a weekly allowance worth up to £1,275, and
• if they need start-up capital, they may also be able to access a loan up to £1,000 to help with their start-up costs.

The total package of support could be worth up to £2,000 to each participant who starts their own business.
We are currently testing the NEA model in six local authority districts in Merseyside.

• April 2011 –we will expand NEA into the remaining Get Britain Working target areas.
• Autumn 2011 – NEA will be available nationally.

http://www.dwp.gov.uk/adviser/updates/new-enterprise-allowance/

Fiddlestick

gaogier wrote: »

If its a Ltd, and I don't take a penny, and work about 5 hours per week, does that count as work?

Yes.

You will also need to pay additional NI contributions as a result of being self employed.

Horace

Setting up a Limited Company leaves you open to paying corporation tax and loads of other types of taxes. Working 5hrs a week is not a business.

I started my business via a New Deal programme but I understand that that programme no longer exists and at the time I was getting JSA but when I became fully self employed that ceased. I do get working tax credits but then I do work more than 5hrs a week, certainly I do the required 37 (in fact it is more like 60 or 70hrs a week). You may get more WTC because you are on DLA. As a self employed person, you need to inform the HMRC, register for WTC and ask for a Class 2 NI exemption, you also need to complete self assessments and pay tax on your profits, you also need insurance.

The Shaw Trust will be able to give you some advice because they help disabled people find work or help them set up their own businesses. You may also be able to get some assistance from the Disabled Entrepreneurs organisation.

If you are going to be incapacitated after surgery for months at a time, how will you support yourself because you don't get sick pay when you are self employed.

BusinessLink have an online service and you may be able to get advice online or you could contact your local chamber of commerce as they sometimes offer free courses to people who are considering starting a business.