New Enterprise Allowance scheme - My story

D4VE

Andy - Thanks again.

I do know a bit about accounting/tax, and know this wouldn't be fraudulent, it's just the company repaying their loan, albeit to me and not a bank. I know I'll have to repay the loan to the NEA, but that would be down to me, and I'll hopefully be in that position towards the end of the 1st year.

I wouldn't be hiding profits, but just delaying me being paid by the company. At the end of the year, I'll still have to show the company accounts and my earnings, and pay any tax due. I need to do some research to clarify things haven't changed too much, but I'll be paying myself the tax allowance (£8000ish) and then topping up with dividends.

Yes, I would need to use the loan to live on, as there's a £50 shortfall from day one. If it works out that I'll be worse off, then I'll have no option but to not go ahead, or stop if I've already started.

I am compiling a list of questions to as the JCP on my next visit, and I'll also ask the NEA provider, and hopefully their answers will be the same. If they're not, then I'll get them both to answer in writing.

Andy2013

As long as you know your stuff then no problem, personally I don't know the exact answer but it just seemed a little questionable, im sure you will get it sorted.

TrueBlue1965

D4VE, there is nothing to stop you from using part of the business loan to top up your living expences until your business starts to make a profit that enables you to start taking money/takings from your business. However, that money you use for living expences cannot go though your business accounts.

Housing Benefit are only interested in your profit/loss which can be simply shown in a Book Keeping Ledger. Thats all they have requested from me. Its up to you how much of the loan you add to your business at any one time and nothing to say that you have to invest the full amount of your business loan!

I have the £2,500 NEA business loan. I,ve adding approx £200 per week into my business since i started trading 6 weeks ago. After 6 weeks i,ve put in £1,200. This is shown in my Book Keeping Ledger.

My Book Keeping Ledger shows that my business is running at a loss at the moment. So, im getting full Housing Benefit. If/when my business starts to make a profit. My Housing Benefit will then be lowered. You can either reinvest any profit back in to your business or take it out as takings which will mean that you risk losing some or all of your Housing Benefit depending on how much your business is making..

s450

Hello guys!
Sorry for interfering into your discussion but I just wanted to update you on my NEA-issue as well. By the way, it sounds really terrifying what you are telling here. Why are there so many incompetent employees at the DWP? It is really frightening.

Anyway, as far as I am concerned, I am a bit confused.
It took some time before I signed off. Due to Christmas time, we postponed it to January.
Last week I went to my sign-in appointment and asked whether they finally managed to arrange the form for my NEA.
It seems my adviser does not know the first about NEA and its procedure. He said, they did not receive any fax from the GLE. He made some calls, but he was not able to clarify the problem. Obviously, I couldn't hear what the person he was speaking to was telling him but I had the impressint to understand he was told that the term had passed and there would be no NEA for me:eek:.
I was already imagining a counterattack in my head. He tried to explain that the client (me) had been asking to sing off for the last 4 weeks and that it was not my fault but of the JC.
Afterwards he fetched somebody else who appeared to me not to be much more competent than him either. This second guy even invited me to sign off. Of course, I said I would not sign off without the certainty that I would get my NEA. They then asked an other adviser, a lady who really appeared to me competent, or at least she behaved like that.
She came and very straightforward said, she knew exactly how this things with NEA work because she had forwarded many NEA applications already and that the procedure is clearly written in the system. (actually she was wondering why the two other guys were not able to just have a read into the system). Anyway, I grabbed the opportunity and asked her to be so kind as to help me. She agreed. :T
The way she proceeded was really very straightforward but at the same time a bit strange, because I did not have to sign anything. She just needed my bank account.
She said she would forward the application without signing me off before the confirmation and that I should get the money very soon.
A strange feeling for me. Because I went home without any appointment for my next sign-in, no papers in my hands which testify that I have forwarded the application for the NEA, just nothing.
I was even wondering if it is really possible that the JC signs you off, without having you to sign any papers. Isn't it a reciprocal agreement ? Shouldn't I be supposed to sign? Besides, shouldn't I get at least a sheet of paper, a sort of confirmation? How is it possible that things here in London often work like that?
Anyway, because a week has passed, I have just called there and spoke to her.
She said, I should get the money of my NEA today and that she signed me off on the 27th January. That should mean:
1) I will get my JSA till the 27th
2) I will get m NEA starting from the 28th
If it is like that then everything is ok and there is no gap no problem. If not, I will have to make a complaint.
But I asked her if I should get a letter, a confimration, because I do not have anything in my hands.
Again, she said, i won't get anything because it is not needed. They signed me off and basta.
I am really astonished. Guys, do thing here really work like that? No papers, no documentation at all?
Besides, she did not explain to me properly what to do next. Should I go to the JC in 6 week or not? And if I don't what will happen? Do I need an official appointment or is is really just up to me when and if to go there?
And what should I do with my Housing Benefit?
Will the JC automatically contact them or am I supposed to contact them? By the way, since I do not have any paper which attests that I have signed off I could also ignore it and just not going there. I am not saying that I want to do it but it is just everything weird. Normally, I should have had to sign off and the JC should then send me a confirmation letter.

Is it only in my case that everything is solely said with no papers but verbal talk, or is it really the normal procedure?

Of course, I will first check If I get the money and than see what I can do.

Andy2013

Good to hear fro you again s450 hope your well, apart from this stress.

Ok so my procedure was as follows but remember it was in November 2012 so things may change.

On my final JSA signing day my advisor had me sign a form to sign me off JSA and I signed a from onto NEA but I received nothing to take home and never received anything there after, there was a gap of 2 weeks whilst payments swapped over but otherwise nothing really happened.

As for HB I was on it whilst on JSA and was going to stop claiming as soon as NEA started as a way to push me harder to achieve , but HB actually contacted me via letter to say my claim would stop as my JSA had ended and I needed to contact them and explain the current situation to continue claiming HB , which I did but only to stop the claim.

Contact them yourself and tell them you are going onto NEA and they should guide you from there.

JSA , NEA ,WTC, HB ,CTC are all inter linked and one can see what the other is doing so someone in theory should not be able to pull the wool over there eyes, that said when you need one to liaise with the other it always turns into chaos but there you go.

The process should be simple and by the sounds of it ours were very similar so see if payments are made and go from there, keep us posted.

treenie01

Andy2013 wrote: »

treenie01 its down to you to make it work, no mentor is going to do that and any questions you have can be answered here or other forums.

What issues are you having , see if anyone here can help, starting out is really hard and most days it seems easier to give up but there could be answers that can make it work.

Honestly at this current time starting a business is almost suicide unless you have done enough research and financial forecasts to know that it is possible , and if you have then fight like hell to make it work, it will be tough but the results could be amazing.

The alternative is to work 40 hours a week for minimum wage in a job you despise

Talk to us we are all in a similar boat , we all need help.

Sorry I've only just seen this.

I've still not heard from my mentor! I can't even be bothered to email him back to be honest.

I wanted to know about marketing myself.

My business is delivering Music Workshops. I am a member of a network (which I also am on the committee for). The problem I have is it's one of those jobs that without a portfolio of work it's hard to promote yourself.

..............

I'm having issues with my payments again. I went to see my advisor on thursday to do the paper work ready to go over to the lower payments which are due to start next week and this week I've had no payment at all. The problem is when you have an issue like this (considering I had problems with these payments at the start) you have to speak to your advisor because nobody else seems to know what to do

Very frustrating

s450

Andy2013 wrote: »

Good to hear fro you again s450 hope your well, apart from this stress.

Ok so my procedure was as follows but remember it was in November 2012 so things may change.

On my final JSA signing day my advisor had me sign a form to sign me off JSA and I signed a from onto NEA but I received nothing to take home and never received anything there after, there was a gap of 2 weeks whilst payments swapped over but otherwise nothing really happened.

As for HB I was on it whilst on JSA and was going to stop claiming as soon as NEA started as a way to push me harder to achieve , but HB actually contacted me via letter to say my claim would stop as my JSA had ended and I needed to contact them and explain the current situation to continue claiming HB , which I did but only to stop the claim.

Contact them yourself and tell them you are going onto NEA and they should guide you from there.

JSA , NEA ,WTC, HB ,CTC are all inter linked and one can see what the other is doing so someone in theory should not be able to pull the wool over there eyes, that said when you need one to liaise with the other it always turns into chaos but there you go.

The process should be simple and by the sounds of it ours were very similar so see if payments are made and go from there, keep us posted.

Hi Andy2013!
Thank you for you answer.
If HS will contact me anyhow, I could just wait that they do it and than switch to the new claim. The hope would be, they will contact me later and I can get a bit more HB for a while, because I assume that on NEA I will get less, won't I? If I am not mistaken, even if you earn only 1 pounds per week, your HB will be much less that what you would get on JSA.
Anyway, I will keep you all posted about my issue.
Ciao

TrueBlue1965

s450, at my final meeting at JCP. I was signed off JSA and signed up to NEA payments. I was given a letter.

The letter was headed NEW ENTERPRISE ALLOWANCE and was stamped by my job centre.


Dear ****,

This letter confirms your eligibility for the New Enterprise Allowance (NEA) weekly payments. You will get a payment of £65 per week for 13 weeks, followed by payments of £33 per week for a further 13 weeks. The payments will stop if you dont provide evidence of trading when we ask for it.

The NEA payment is designed to help your finances when you first set-up in business. It is not treated as earnings from self-employment should you make a claim for Housing Benefit. You will have to contact your Local Authority to confirm if any reduction you receive in your council tax bill is effected.

I have agreed that the NEA weekly payment allowance will start from *****. The first payment should go directly into your bank/building society account within a couple of weeks of you getting this letter. Your first payment will include all money owed to you from the date your payments were agreed.

You will get your payments on the same working day of the week as you got your first payment. If your payment day falls on a bank holiday the payment due on that day will be made earlier.

Payments will appear on your bank or building society statement with the word DWP, followed by your National Insurance number and CSHR.

If you have a query about a payment made to your account, or you have a more general query about NEA, please telephone the number shown at the top of this letter.

Yours sincerely

On behalf of manager.

NEAL7(CPS) 04/13

---

I would suggest that you should have been signed over on to NEA and been given a similar letter to the one I was given. Hopefully, everything goes without any problems and you start getting your NEA payments very soon. My NEA payments took 10 days before they appeared in my bank account. However, I also got a small final payment of JSA.

First thing you need to do is register your new business with HM Revenue and Customs (HMRC). You need to do this for Tax and National Insurance.

Then, you need to go to your local One Stop Shop (Housing Office) and explain that you have just signed off JSA and just registered a new business. You want to claim for Housing Benefit and coucil tax reduction as you are on low income. They should send you out a form to fill in. Take the completed forms back to the One Stop Shop with any proof of earnings. For example, your business books (incomings and out goings from your business).

You will get a letter soon stating that your housing benefit will stop. You will also get another letter stating that your housing benefit will be paid for another 4 weeks. This gives you a little time to get your Housing Benefit sorted out. Dont hang around as the form usually takes 2 weeks once you request it from the One Stop Shop. You are likely to get full Housing Benefit as you are on low income until your business starts to make regular money. The more you earn, the less Housing Benefit you will get. Either way, your better off.

Housing Benefit will ask for proof of any earnings every few months. So, make sure you keep your books up to date.

If you are over 25 and will be working full-time on your business. Contact DWP and attempt to claim Working Tax Credits. Remember, work can be looking for work for your business. Anything to do with your business is working time even if your not being paid

Keep your books up to date and record everything you do that is concerned with you business. Log all the hours you work each week. You need to be able to show that you are working full-time on your business to get all these benefits and to continue getting the NEA payments.

You will get a letter from JCP asking you to call in to have a 6 week check that you are working on your business. No need for a appointment. My books where all that they needed to see and JCP were happy!

Hope this helps!

treenie01

I never got a letter at all. I got one from jsa saying is been signed off but that was it

s450

TrueBlue1965 wrote: »

s450, at my final meeting at JCP. I was signed off JSA and signed up to NEA payments. I was given a letter.

The letter was headed NEW ENTERPRISE ALLOWANCE and was stamped by my job centre.


Dear ****,

This letter confirms your eligibility for the New Enterprise Allowance (NEA) weekly payments. You will get a payment of £65 per week for 13 weeks, followed by payments of £33 per week for a further 13 weeks. The payments will stop if you dont provide evidence of trading when we ask for it.

The NEA payment is designed to help your finances when you first set-up in business. It is not treated as earnings from self-employment should you make a claim for Housing Benefit. You will have to contact your Local Authority to confirm if any reduction you receive in your council tax bill is effected.

I have agreed that the NEA weekly payment allowance will start from *****. The first payment should go directly into your bank/building society account within a couple of weeks of you getting this letter. Your first payment will include all money owed to you from the date your payments were agreed.

You will get your payments on the same working day of the week as you got your first payment. If your payment day falls on a bank holiday the payment due on that day will be made earlier.

Payments will appear on your bank or building society statement with the word DWP, followed by your National Insurance number and CSHR.

If you have a query about a payment made to your account, or you have a more general query about NEA, please telephone the number shown at the top of this letter.

Yours sincerely

On behalf of manager.

NEAL7(CPS) 04/13

---

I would suggest that you should have been signed over on to NEA and been given a similar letter to the one I was given. Hopefully, everything goes without any problems and you start getting your NEA payments very soon. My NEA payments took 10 days before they appeared in my bank account. However, I also got a small final payment of JSA.

First thing you need to do is register your new business with HM Revenue and Customs (HMRC). You need to do this for Tax and National Insurance.

Then, you need to go to your local One Stop Shop (Housing Office) and explain that you have just signed off JSA and just registered a new business. You want to claim for Housing Benefit and coucil tax reduction as you are on low income. They should send you out a form to fill in. Take the completed forms back to the One Stop Shop with any proof of earnings. For example, your business books (incomings and out goings from your business).

You will get a letter soon stating that your housing benefit will stop. You will also get another letter stating that your housing benefit will be paid for another 4 weeks. This gives you a little time to get your Housing Benefit sorted out. Dont hang around as the form usually takes 2 weeks once you request it from the One Stop Shop. You are likely to get full Housing Benefit as you are on low income until your business starts to make regular money. The more you earn, the less Housing Benefit you will get. Either way, your better off.

Housing Benefit will ask for proof of any earnings every few months. So, make sure you keep your books up to date.

If you are over 25 and will be working full-time on your business. Contact DWP and attempt to claim Working Tax Credits. Remember, work can be looking for work for your business. Anything to do with your business is working time even if your not being paid

Keep your books up to date and record everything you do that is concerned with you business. Log all the hours you work each week. You need to be able to show that you are working full-time on your business to get all these benefits and to continue getting the NEA payments.

You will get a letter from JCP asking you to call in to have a 6 week check that you are working on your business. No need for a appointment. My books where all that they needed to see and JCP were happy!

Hope this helps!

Dear Trueblue1965, I appreciate your answer. Thank you. You and Andy2013 have always been so kind to followed my case and provide me with suggestions.

But now I really feel unsafe any longer. Because I did not get such a letter. In fact my paranoia has been already telling me:
"they have signed you off. you are now out of the system. You won't get any NEA and if you go to the JC complaining they could telly you: you declared to be ready to trade, so why don't you start trading and if you do not earn enough you could claim low income support".
On the other hand, I could tell, that I haven't signed off, that they did not ask me to sign off, but they just signed me off.
The reason why my paranoia is telling me such things is because:
1) I read now that in reality I should have had to sign for the -NEA and the JC should have given me a document like yours.
2) the adviser I spoke ton the phone told me, the money should have been transferred last Monday, but I cannot see any money on my account yet. It can't take that long for the payment to arrive. I am afraid I won't get any NEA payment.

But what @Treenie01 says gives me a bit mor hope back.
"I never got a letter at all. I got one from jsa saying is been signed off but that was it "

So, I do not know what to do? Should i make an official complaint?