New Enterprise Allowance scheme - My story

Andy2013

Your absolutely right each of us will have very different situations and needs and by the look of it andyscott is knowledgeable of his competition and how much others are paying for there equivalent business.

My only concern andyscott is how you will fund the project once you get one, I assume they pay up front so you pay costs out of that?

WantToBeSE

My start up costs are about £500, the majority of this is for flyers and advertising, although some will be for the actual materials i will need (but this is minimal really).
The NEA lady that i spoke to on the phone seemed confident that i would get approved for the loan, but i think i'll look into the P2P loans/grants (thanks Pinky).

andyscott

I need to sit down tonight and work out a new financial plan for my business, will also need to start looking online for someone who is looking for telesales work.

andyscott

Anyone who is already trading had that situation where your trying to sell your idea to your potential first customer and they ask who has already tried your product/service?

CuriousWorker

Well, I eventually had my business plan approved, signed off JSA, filled in the forms with my JCP advisor and signed over onto NEA nearly two weeks ago. I have received my final JSA payment but haven't heard anything whatsoever about NEA so far and I'm now wondering how long it will be before I receive the first payment or a letter of confirmation. Does anyone know?

I have also now been told that you are NOT allowed to start trading until you receive the letter confirming the NEA (which I have not received) yet the jobcentre signed me off as becoming self-employed nearly two weeks ago and I have now received letters from my local council about self-employed earnings for Housing Benefit (which, after the 4-week run-on will be suspended until they receive proof of earnings/self-employment), my P45 and letters from the Jobcentre confirming my claim has been closed down.

Originally I was told that NEA didn't have any effect on Housing Benefit but this is clearly not the case. The council are asking for proof of tax credits as proof of self-employment but I haven't claimed them yet because I don't know if I am allowed to start trading yet and I have no idea when the NEA actually starts (which I presume would be the day I signed off).

So, at the moment I have very little money, I'm self-employed according to the Jobcentre and cannot do much until I know where everything stands. Awkward, eh?

WantToBeSE

Cuious Worker- you can start trading as soon as you have been signed off JSA.

pinkypoopydoo

CuriousWorker wrote: »

Well, I eventually had my business plan approved, signed off JSA, filled in the forms with my JCP advisor and signed over onto NEA nearly two weeks ago. I have received my final JSA payment but haven't heard anything whatsoever about NEA so far and I'm now wondering how long it will be before I receive the first payment or a letter of confirmation. Does anyone know?

I have also now been told that you are NOT allowed to start trading until you receive the letter confirming the NEA (which I have not received) yet the jobcentre signed me off as becoming self-employed nearly two weeks ago and I have now received letters from my local council about self-employed earnings for Housing Benefit (which, after the 4-week run-on will be suspended until they receive proof of earnings/self-employment), my P45 and letters from the Jobcentre confirming my claim has been closed down.

Originally I was told that NEA didn't have any effect on Housing Benefit but this is clearly not the case. The council are asking for proof of tax credits as proof of self-employment but I haven't claimed them yet because I don't know if I am allowed to start trading yet and I have no idea when the NEA actually starts (which I presume would be the day I signed off).

So, at the moment I have very little money, I'm self-employed according to the Jobcentre and cannot do much until I know where everything stands. Awkward, eh?

I've never had any letter saying I was on NEA - I started trading the day after I signed off (well, I signed off on the Friday, started trading on the Monday). I waited two weeks for my first NEA payment, which was a double payment, and now I'm getting a payment every week.

If you're signed off JSA then you need to start trading, and get tax credits sorted - my JC adviser told me to phone tax credits on the Friday I signed off, to get the ball rolling and get tax credits sorted quickly. As it was, the TC office decided I'd been lying to them about being single, and I had a bit of extra hassle, but it's all sorted now. It means I've had a month where I've paid full council tax though, but I got my form sorted the other day.

don't forget you need to register NOW for self assessment - that means HMRC know you are self employed, even though it will be 18 months before you need to complete any tax return (the Jan 2014 deadline is for tax year 2012/13) and set up NI payments.

CuriousWorker

Ok, thank you both. Tax Credits forms are now on the way. Do you know if it's a requirement to register with HMRC before you get the New Enterprise Allowance or do they pay it anyway seeing as there is a set timeframe within you must register?

Also, just wondered if anyone else uses their home address as their business address? Housing Benefit are asking for my business address but I do not have a business premises as such as I mainly travel around visiting people at their homes. The only work I actually do at home would be accounting and online activities which I do in my bedroom (I live in shared accommodation).

andyscott

CuriousWorker wrote: »

Ok, thank you both. Tax Credits forms are now on the way. Do you know if it's a requirement to register with HMRC before you get the New Enterprise Allowance or do they pay it anyway seeing as there is a set timeframe within you must register?

Also, just wondered if anyone else uses their home address as their business address? Housing Benefit are asking for my business address but I do not have a business premises as such as I mainly travel around visiting people at their homes. The only work I actually do at home would be accounting and online activities which I do in my bedroom (I live in shared accommodation).

Using your home address Will not be a problem although if ou can afford it I would recommend you pay for a mailing address. Even if you don't expect to be sent any mail it looks so much more professional if you can give a town centre or city centre address and it also saves you giving clients your home address. The supplier of the virtual office that I will be using only charges £20 per month for address and that's bang in the middle of a city centre.

pinkypoopydoo

CuriousWorker wrote: »

Ok, thank you both. Tax Credits forms are now on the way. Do you know if it's a requirement to register with HMRC before you get the New Enterprise Allowance or do they pay it anyway seeing as there is a set timeframe within you must register?

Also, just wondered if anyone else uses their home address as their business address? Housing Benefit are asking for my business address but I do not have a business premises as such as I mainly travel around visiting people at their homes. The only work I actually do at home would be accounting and online activities which I do in my bedroom (I live in shared accommodation).

No, I don;t think you have to register before you get NEA, but you should register straight away anyway to keep you right. It only takes five minutes online, and then you have to wait for them to send out an activation code for your self assessment account.

I use my home address - that's the address I've given to HMRC, tac credits, council etc.

If you are visiting people in their homes, you should look into Liability insurance

Quote from my insurance details:

"If you will be working at a customer's property or premises, you will also be liable for any damage or injury arising as a result of your work for them. Having a public liability policy in place is not a legal requirement per se, but certain professions will need to have one in order to trade"