Very disappointed with benefits for self employed

pipscot

merlin68 wrote: »

Well according to the CAB briefing which is available online. All self employed will be assesed as earning minimum wage of £243 a week and entiled to £6 a week Uc

Could you explain a bit more clearly where these figures have come from? The only info I have from the CAB mentions a hypothetical scenario where someone is claiming they work 40 hours (£237 nominal income). I can't find anywhere that says all self-employed people will have to declare 40 hours, nor can I understand where the £243/£6 has come from in this document? Am I reading it wrong?

missbunbury

aughermon wrote: »

I didn't want to go down the road of bank financing as I basically want to try and have no debt as I dont have any otherwise, I have tried to look for grants and funding but so far have come up with nothing.

But what is being suggested here is business debt not personal debt. It's very common for businesses to borrow money against anticipated profits that will come as a result of that money. You shouldn't feel that this would be somehow failing, it's part and parcel of growing a business and as long as the debts are not too high too be sustainable there should be no problem. For example, if I borrow ten grand in order to buy stock that I can then definitely sell for twenty grand, that is a debt, but it's one that will earn me then grand I wouldn't otherwise have had. If, as you say, you will be making a profit in three month's time, is this profit going to be sufficient to cover a loan that will keep you going for those three months?

aughermon wrote: »

Just a bit miffed that the tax credits I get are then taken off my housing benefit as an income. Was not expecting to have my full rent paid, that wasn't what I was looking for, just some help but you get the credits for the work you are doing and then housing take this off the amount they give you, if I had the both even the extra £95 a month this would make so much difference.

But it is income, so how else can it be treated? To take it to an extreme, if you had £1000 a month of tax credits coming in, you would surely not expect that to be ignored? I realise you're in a situation where small amounts of money can make a big difference currently, but there's no point feeling hard done by, you need to find another way to bring in enough extra cash to keep you going until these anticipated profits kick in. Maybe find a part-time evening job to top up your earnings while concentrating on your business in the day? Or bring forward some of the work you have in the pipeline now you have more time to devote to it?

There's loads of good advice on the up your income boards for people looking for ways to bring in some extra cash.

flashnazia

How nice it is that the welfare system won't support this aspiring person but it fully supports those who will never aspire to anything because they just cannot be bothered....

Arg

KimYeovil wrote: »

Why should benefits support a non-viable business? Why should benefits provide a seed fund for your business?

Why are you posting in the wrong forum?

Its about helping people get their entitlement! Not about benefits policy!

This board is here for help and support for those on or looking to claim benefits, not for judgement.

Arg

Sixer wrote: »

OP: I feel your pain, but I do think you should listen to what others have said. You're working for nothing in the hopes of profit in the future. That is a capitalist system risk and it needs to be funded by capital (banks, venture capital, etc) not the welfare system. If someone decided to volunteer instead of working at paid employment, would you be happy for welfare benefits to pay their rent and living expenses due to their nil income? Where is the difference?

Tax credits prop up part time workers don't they?

AnxiousMum

OP you mention that you need to remain in the premises you are living in, as you require the outbuildings etc. for your business. So, is not a part of your rent actually a business expense, and you are likely paying more in rent for the place if it didn't include the outbuildings. I don't think that LHA would take into account rents for outbuildings - as in extra rooms or such. So given that, you are likely paying more in rent for your house than the LHA amount, but, only becuase in reality, it is a business expense. LHA doesn't cover business accommodations.

If you don't have the capital for starting up a business, have you tried to get financing for capital start up? That would be the normal route wouldn't it? With a sound business plan, projections etc put together between yourself and your accountant - if it's onlythree months you need assistance for - I'm surprised you can't get a loan to subsidize you over this time frame.