New Enterprise Allowance scheme - My story

andyscott

sun_shine wrote: »

That's great news I was also accepted onto the NEA yesterday and was told there was a bit of a waiting list for a mentor too, but i have been sent lots of information via email to get me started. I signed on today too and told them at the JC about the NEA and i haven't been told to keep looking for work. I have got a form to fill in to declare any earnings i may start to get because i am already getting enquiries through word of mouth :j Now i need to concentrate on my Business Plan.

Well Done but I think you need to be careful. You have said about completing a form to declare any earnings you make just now. If your already taking money for your business then you are already trading and should be registered with HMRC.

Also NEA is for unemployed people who dont already have a business started, so you need to watch incase they turn round and say you cant do NEA now as you have already traded. With NEA your not allowed to trade until mentor says its ok with regards to business plan, training etc and you cant trade until you have came off JSA and went onto NEA.

andyscott

TeeKay10 wrote: »

Thanks, and great news for you too sun_shine! :j

I also got sent lots of useful info by email to look through and study before the mentoring starts, including a good business plan template, plus I am starting a book keeping course (arranged free through the DWP) tomorrow so lots to keep the ol' brain going at the mo!

Just for anyone's info, I'm doing the NEA through a firm called 'Business in the Community'. I'm in Derby although my nearest offices are apparently in Nottingham. I know nothing about them except that they are linked to the Chamber of Commerce and other bodies, but the lady on the phone seemed very informative and helpful.

We'll see what the DWP have to say on sign on day tomorrow - it'd be great not to have to do the 28 'steps' a fortnight that I have to do to look for work! It seems silly to do this now (IMO) as by applying for jobs that I don't actually want anymore, I could be preventing someone else from being selected for interview, not to mention wasting the time of the person advertising the vacancy.

Also (it may have been mentioned earlier in the thread, apologies if so, my memory is rubbish!) the HMRC do free 'webinars' online to do with self employment (amongst other things) which may be worth a look, plus my council (Derby City) do some adult learning courses which are also free to benefit claimants. All sorts of things from starting a business, to accountancy for beginners etc etc. Maybe your own council run a similar scheme too?

Here is hoping that they dont pressure you to do job searches as I know officially while still on business plan stage you still must be looking for work and willing to accept a job offered to you.

Crazy I know but that is the official line but with JC+ it all depends on which monkey you get.

pinkypoopydoo

andyscott wrote: »

Here is hoping that they dont pressure you to do job searches as I know officially while still on business plan stage you still must be looking for work and willing to accept a job offered to you.

Crazy I know but that is the official line but with JC+ it all depends on which monkey you get.

No, I'm on the business plan stage, and my JS agreement has been changed to say that I DON'T have to look for work, and that I am expected to work full time on my business plan. However, until you get called in to change your agreement, and sign the new agreement, you are still expected to work. (I had to still apply for jobs last week, as I didn't have my appointment to change my JS agreement until yesterday.)

I was told (by my particularly horrible JC advisor) that that was the standard practice, once you'd been accepted onto the business plan stage.

BigAl127

I was still expected to look for work, but was exempt from completing the job search booklet, which you take to your fortnightly signing on sessions. Once I had been approved for NEA by my mentor, I then had 13 weeks in which to start trading, but then had to start completing the job search book, in case I didn't start to trade.

pinkypoopydoo

BigAl127 wrote: »

I was still expected to look for work, but was exempt from completing the job search booklet, which you take to your fortnightly signing on sessions. Once I had been approved for NEA by my mentor, I then had 13 weeks in which to start trading, but then had to start completing the job search book, in case I didn't start to trade.

I'd best take back all the horrible things I've said about my JC adviser then! She called me back in, specifically to sign an altered agreement, that removed any need to look for work. My agreement now states that I will work on my business plan, keep in touch with Business Gateway and inform them immediately if I decide to stop pursuing self employment. Zero actions required on job searches for 8 weeks.

Ziggy_Stardust

pinkypoopydoo wrote: »

I'd best take back all the horrible things I've said about my JC adviser then! She called me back in, specifically to sign an altered agreement, that removed any need to look for work. My agreement now states that I will work on my business plan, keep in touch with Business Gateway and inform them immediately if I decide to stop pursuing self employment. Zero actions required on job searches for 8 weeks.

Gosh that is good, DH wasn't given any agreement. Anyhow an agency has started giving him some regular work for the next couple of months, they'll only do it on PAYE so he's signing off NEA, I just hope the agency don't let us down.

andyscott

pinkypoopydoo wrote: »

I'd best take back all the horrible things I've said about my JC adviser then! She called me back in, specifically to sign an altered agreement, that removed any need to look for work. My agreement now states that I will work on my business plan, keep in touch with Business Gateway and inform them immediately if I decide to stop pursuing self employment. Zero actions required on job searches for 8 weeks.

Thats good that in your case they are using common sense and not expecting you to look for work when your planning on going self employed.

andyscott

Ziggy_Stardust wrote: »

Gosh that is good, DH wasn't given any agreement. Anyhow an agency has started giving him some regular work for the next couple of months, they'll only do it on PAYE so he's signing off NEA, I just hope the agency don't let us down.

You can now get onto NEA as soon as you start claiming JSA so hopefully they will allow him back on it when the agency work stops.

Hope it goes well for him because I hate agencies. They always say they have plenty of work going but your never gauranteed anything with them.

WantToBeSE

Oh i am feeling annoyed today!

Went to sign on yesterday and told my advisor that i still hadn't heard from the business mentor.
He then remembered that he was supposed to reply to an email, before the mentor could contact me...he got the email 2 weeks ago and hadn't replied.
So he replied yesterday while i was there, and promised me that s/he will contact me soon (hmm...).

I asked him about job searching, so that i still meet the requirements for JSA, and i do still have to job search, right up until the time that i come off JSA. However, he said that they tend to be more flexible now that i am on the NEA scheme. I can put things like 'Wrote business plan' and 'Researched sole trader requirements with HMRC' as job searches, so that its tailored to what i am doing.

I have found an agency nearby, that allocates SE cleaners to some of their clients, so i have been in touch with them. They said that there are definitely hours there in my area, and to contact them again when i have set up as a ST. They pay less than i would charge p/h for my own clients, but it may help with getting enough hours to claim WTC while i find more clients of my own.


Does anyone know the answer to this: I think i heard somewhere, that you should keep a third of what you earn, as this will be needed for NI and Tax? Also, do i only start paying NI cont when i am earning over a certain amount?

I am going to call the HMRC today, and see if they can send me out any information about tax etc.

WantToBeSE

I am just going to put this link about Income Tax here, so that others may find it useful when trying to find out how much they have to pay:

https://www.gov.uk/income-tax-rates

And i am doing the same for NI too:

https://www.gov.uk/self-employed-national-insurance-rates