New Enterprise Allowance scheme - My story

Andy2013

For those of us who have now moved on from NEA this is worth a look , a few good ideas and schemes which can help save a few pounds or raise a few even.

https://www.gov.uk/business

Stevenb

Brilliant stuff andy2013 really good info and even deals on broadband, every little helps us in the early years.

And this is the best place to obtain new credit and finance to grow a business , banks are much happier to lend via a government backed scheme, I myself am talking to them about it.

noorani

Hi everybody,

I've dipped into this thread and read bits here and there. It's so long I didn't read every post, so sorry for that. I have a question though if anyone knows.

Some of you have said they wouldn't have used the enterprise type scheme as it wasn't all it was cracked up to be/various difficulties, etc.

I am just wondering then, to try and start a business without this, and for me it would probably only be a little business, such as selling things I make on Ebay or Etsy, do you have to declare absolutely every thing you do to jobseekers in the same way? When to begin with it might be a while before you sell anything, or you wont earn a lot.

NYM

noorani wrote: »

Hi everybody,

I've dipped into this thread and read bits here and there. It's so long I didn't read every post, so sorry for that. I have a question though if anyone knows.

Some of you have said they wouldn't have used the enterprise type scheme as it wasn't all it was cracked up to be/various difficulties, etc.

I am just wondering then, to try and start a business without this, and for me it would probably only be a little business, such as selling things I make on Ebay or Etsy, do you have to declare absolutely every thing you do to jobseekers in the same way? When to begin with it might be a while before you sell anything, or you wont earn a lot.

If you make things to sell, you must register with HMRC as a business. I don't know if they share info with the Jobcentre but assume they would.

Andy2013

When you sign on to JSA they use the phrase " have you done any work paid or unpaid since we last saw you " and this means exactly that, charity work, window cleaning or a part time job.

Yes is the honest answer , JSA is designed for the unemployed looking for work , not any variation.

NEA for me and a few others was poor, some have different stories but very few hype it to much and as for you joining the scheme you may as well do so because you have nothing much to lose if your serious about starting a business.

There are certain criteria you must fulfil and the process nowadays seems pretty long drawn but it can at least aid some finance and if your mentoring does work out then it can be a positive thing.

The simple question you need to ask is , am I cut out to work for myself , do I have the logic, determination ,self belief and character to make it work.

Not everyone does, some people need to drive, others need to be driven.

TrueBlue1965

Almost correct, Andy. You can be claiming JSA and be working part-time, paid or unpaid. This includes those who are on The Work Programme. However, you can only work up to 16 hours per/week paid or unpaid. You must fill out time sheets and state how much you earn every time you sign-on. (Think it was the A1 form which I had to complete). My JSA was reduced by the amount earnt in wages. Last time I was working and claiming JSA at the same time. I was allowed to be £4 p/w better off than if I was just on JSA and not working. Not much money for 12 hours work but it was the experience I was after and not the extra cash.

Depends how and where your trading and at what level your trading which determines the need to inform HMRC that your making a few private sales. Anybody can sell on e-bay or at car-boot sales. (If your making something to sell. The materials become second hand once you have purchased them. So, your selling your second hand stuff). It does not mean that you are a business or need to declaire your earnings to HMRC after a few small private sales. HMRC might argue different if their is profit in the sales but in reality many ppl sell their second hand stuff and sometime make a small profit.

I was allowed to do some test trading while I was on The Work Programme (business adviser for guidence). I had to keep complete records of everything I did with my business activities and tell JSA of any sales/money made from any sales and the hours worked on my business(no more than 16 hours p/w). Again, any profits where reduced from my JSA. Because I was test trading and everything was logged and declaired. I was allowed to do this for a few months without any difficult questions to answer at JCP. Things might have changed in the last 15 months since I was doing this test trading. So, its always better to ask questions at JCP and tell the truth about what your thinking of doing. These are just ideas that your putting to your JCP adviser as part of getting back in to work/becoming self-employed. One final thing to consider before you try any test trading. You cannot go on to NEA if you have been trading in the past 6 months. I almost came unstuck regarding getting on to the NEA scheme.

Stevenb, why would you need or even want a loan if you made over 25 k profit in your first year of trading? Sounds like you should have more than enough money to invest back in to your business to not need a loan!

Stevenb

Stevenb, why would you need or even want a loan if you made over 25 k profit in your first year of trading? Sounds like you should have more than enough money to invest back in to your business to not need a loan!

Because I pay my own way !!!!!!

My rent , council tax , electric bills , water bills and of course tax on my profit .

Almost 20k a year

Its called reality TrueBlue1965

Andy2013

Stevenb its not an easy concept for some people to grasp.

25k profit does not mean a flash car and a holiday , it means paying your own living expenses instead of getting the government purse to fund it for you.

I also have made some nice profit, but with £1200 a month on bills it soon diminishes.

Stevenb

25k profit does not mean a flash car and a holiday , it means paying your own living expenses instead of getting the government purse to fund it for you.

I also have made some nice profit, but with £1200 a month on bills it soon diminishes.

Nice to see someone understands the true pitfalls of earning money from a business.

Earing 25k profit is no different to earning 25k salary , it gets taxed and you have to live on it so after all the money is paid out not much is left over , so yes TrueBlue1965 I do need finance to help grow the business.

dktreesea

tomterm8 wrote: »

If you could in the first month or two of operations make enough money to support yourself why would you start up using the NEA scheme in the first place?

You can start a business on JSA at any time. The NEA scheme is pretty much designed for slow growing businesses.

You'd be far better off forgetting the NEA altogether in that scenario.

The time taken to deal with the bureaucracy of the NEA scheme would cost you money.

How would you know though? if you qualify for help, even though the help might be quite modest, like with the NEA scheme, I would advise people to try to go on it.

The NEA scheme, to me, seems to be designed more to get people off JSA. I doubt whether they care if the business is going to be slow or fast growing.