New Enterprise Allowance scheme - My story

pinkypoopydoo

I have the job centre this afternoon - any suggestions as to what I can take to prove I'm trying?!

I have a copy of my bank account, invoices I've paid, a couple I've not (!), cheque book showing that I've used cheques in the last couple of days, cash flow. Should I take my scribbly diary that makes no sense to anyone but me, do you think?

Andy2013

Bank statements and cash flow should be fine, your doing your best don't worry they are just following procedures, something mine don't do , let us know how it goes.

bellkat

I've also received a letter this week from NEA asking for proof that I am still trading. It's only just over 3 weeks since I signed off!!

I'm feeling the same as you Pinky, as up to now I've not had much income coming into the business, but I expect it to increase in the coming weeks.

I don't have to go to the JC, just send the info off to them. Good luck this afternoon, I'm sure it will be fine.

BigAl127

pinkypoopydoo wrote: »

I have the job centre this afternoon - any suggestions as to what I can take to prove I'm trying?!

I have a copy of my bank account, invoices I've paid, a couple I've not (!), cheque book showing that I've used cheques in the last couple of days, cash flow. Should I take my scribbly diary that makes no sense to anyone but me, do you think?

I took mine in last week, they photocopied 2 invoices, my balance sheet, and profit & loss sheet. The latter two I had printed out from my quickfile (online) accounting program.

andyscott

BigAl127 wrote: »

I took mine in last week, they photocopied 2 invoices, my balance sheet, and profit & loss sheet. The latter two I had printed out from my quickfile (online) accounting program.

I find it hard to believe that the JC advisors even know what they are meant to be looking at seen as though most of them dont know what NEA is.

pinkypoopydoo

Back from my meeting - the silly old (text removed by MSE Forum Team) tried to tell me I was doing my business accounts wrong! Given that I've just qualified as an ACCOUNTANT, I think a basic cashflow and trading account are well within my skillset, so I gave her a 20 minute lecture on how to complete accounts, what is classed as income and why drawings are entirely dependant on a businesses turnover. She spent 5 minutes querying why I had paid for things with my visa instead of out the business account, and then said everything was ok. I've to go back in 5 weeks.

TrueBlue1965

Just had my 1st interview with a JCP adviser after 2 frustraiting years on the Work Programme. I,ve requested to go on the NEA and after explaining my business idea i have been passed on to the NEA.

I think a few on here are looking at NEA and being self employed from the wrong angle. As part of my interview at JCP i,ve had a better off calculation before excepting the chance to go on NEA. It works out for me to be on NEA as im going to be on average £21 better off for the 6 months on NEA even if i dont make any money from my business. Working tax credits and child tax benifits plus housing benifit cover my living expences until im making money. Any money i make will be going back in to my business while it grows. After the first 6 months of trading. I would be only £20 out of pocket if i dont make a penny from my business. So, its a no brainer for me to become self employed and on NEA from what i can work out!

The £1,000 loan is a no brainer to me even at the high interest rate. How else can someone who has been on benifits for a long time get a loan? Without money, its impossible for many to build a business up even with a very good business idea. Start up fees, stock and marketing all cost money that many of us simply dont have and almost no chance of getting!

Looking forward to seeing the adviser for the NEA next week and getting started on my business plan.

This_Year

andyscott wrote: »

Welcome, glad you decided to join us.

What is it your mainly looking to receive from the jobcentre in regards to starting a busines that you cant get from going it alone?

s450 wrote: »

Sorry, but what sort of answer is this?
Do you really think that a person who get JSA and dedices to start his/her business could go alone already from the top without any help?

Do not forget that this thread here is about NEA.
I would appreciate if if somebody could provide me with constructive answers.
Thanks

If you read the thread, you'll find lots of advice. I've learned quite a bit from it. There was no need for such a rude answer - AndyScott was merely trying to establish what help you were looking for. As quite often the Jobcentre just DO NOT KNOW the answer.

Some do, some don't. Mine seem to be in the don't category.

So I have done my calculations and am preparing to start up without NEA "help" very shortly. Unless they pull their finger out before then...

I've also found local business advice and also the HMRC website very useful in preparing for it. So while I can understand your snappy response, please try and be a bit nicer in future to people who are willing to share their own experiences and advice.

Andy2013

TrueBlue1965, nice to have you on board.

I don't think money is really the problem that any of us are having with NEA, its sod all, but the point is it gets less over time to gradually faze you into having no life line each month from there payments.

Not everyone will get WTC as its dependant on previous years incomes etc.

NEA is supposed to offer us a support network with a mentor and events to help us into self employment and I am sorry but most seem to get little or none of this.

I have been on it now for almost the full 6 months, its mid July and I have met my mentor once at my induction in December, since then I have had 1 phone call in early January lasting 1 minute 16 seconds , and 2 emails.

That is the problem not the money.

Maybe a few are getting better service but that's not helping me with my career, NEA is a shambles , a waste of time and for those just wanting the money its an excuse to sit back for 6 months and do chuff all.

I will say again that ANYONE can set up a business and it is no use expecting NEA to answer all the questions because they just don't .

I saved some benefits back last year and used that ,it was not much but I reinvest my profits and I am building up slowly, I did not use the loan as NEA messed the application up, which now I am very grateful for as I owe nothing to them .

I wish you luck with your idea and I hope you get better advice and help than most of us on here.

TrueBlue1965

I,ve averaged the payments out over the full 26 weeks in an attempt to gain a steady income for my family to live on with the other benifits we are entitled to. Those other benifits are oviously dependent on individual circumstances. One of my main concerns was keeping my families head above water until my business gets fully established and starts to produce a consistant long term income. So, that first 6 months of a steady income above JSA level makes a massive difference to me and my family. It gives me a 6 month period to grow my business idea and put some cash in the bank for when i dont have that cash support of the NEA payments. If i cannot turn over a profit after 6 months. Then, i should not be in business in the 1st place. Thats the main reason why the business plan is so important imho. The rest should be down to hard work and a bit of luck to make any reasonable business idea work.

You can be making a loss year on year and still be entitled to WTC. The calculation is based your individual circumstanes and you must be able to show that you are working more than the minimum number hours. In my case, 30+ hours per/week (I have a partner and two young children to support). My WTC calculation is based on me and my partner earning nothing in the last finanical year. As long as i can show that im doing 30+ hours of real and potentially paid work. Im entitled to it even if i dont make a profit to pay tax on. Its worth almost £90 per/week based on my circumstanes. Lots of people earning very little but using WTC to push up there income to a level above JSA.

While i,ve been reading this thread i,ve been shoked at some of the stories about the lack of support from mentors for NEA. While i,ve not started NEA yet. I can tell you what support you should be getting. This is based on what my provider is asking mentors to offer to those on NEA. Its sugested that we should be getting 1 hour each week for the first 6-8 weeks while we are doing our business plan. After the business plan is excepted and we move on to NEA. We should be gtting 1-2 hours support per month for the first 6 months. In the case of my provider. I should also get a further 12 hours of fee support with a mentor over the following 3 years. If i dont get the support i need. I will be complaining to my provider, JCP and my MP and i will be expecting something to be done! Andy, its a bit late now but you should have been complaining and requesting either the support you needed or if the mentor you where given was a waste of time. You should have been making an offiicial complaint and demanding a new mentor who is prepared to support you as should have been agreed.

Not sure many are sitting back for the 6 months while they get the NEA money. In my case, i,ve already done massive amounts of prep work on my business idea. Sampes are made. Website is hidden but almost ready to go live. I,ve done thousands of hours of real research and i know where my business can potentially go. So, im ready to go once my business plan is completed and im supported by a mentor. The money just gives time for the business to grow and a little security for my family in the first 6 months. The loan gives me the chance to grow the business a little faster and resolve some cash flow issues which most small businesses have if you make a product for sale.

Your not the only one to have put a little money aside to start up your business, Andy. NEA is not the answer to every problem im sure. I could start my business tomorrow and i believe i can make a good living in time. However, im not going to turn down a helping hand in the early stages of my business when its most likely to fail.