New Enterprise Allowance scheme - My story

rhcp

s450 wrote: »

Today, 10th February (12 days after that) I can see again a JSA payment of 61.46 pounds.

3) why 61.46?

£61.46 is 6/7th's of £71.70, so it looks like you have been paid 6 days worth of JSA.

D4VE

Andy2013 wrote: »

D4VE to my knowledge however much salary you take from any profit you make is irrelevant , you make money from your business ( Turnover) and after expenses and stock etc you end up with Net profit and that is then the figure that HB will use to work out how much HB to pay.

You tell them Net Profit, regardless as to salary taken out.

Whether you take £200 or £500 out of the net profit as salary makes no difference , as salary ( to my knowledge ) is a personal expense not a business related expense and can not be used to reduce Net profit , so if you make £1000 a month profit that's what they use, even if you reduce it to half by taking a salary, otherwise people would just increase there salary each month to stay under the threshold for HB.

This link is handy , half way down it mentions not allowing " drawings" which is what I have said above. (link removed)

Andy,

Thanks for that, and the link. That makes sense, to stop people keeping their 'salary' high (or low), to minimize what they need to tell HB. Although I wouldn't be self employed (Ltd Co.), the principles are the same.

From the link it says "Housing Benefit rules are different to Tax rules". When preparing accounts, Net Profit is AFTER salaries, but HB 'net profit' is a different version ! Lol

Another difference is the depreciation not being taken into account. If for example, you bought equipment for £1,500, it would be depreciated over 3 years, reducing your profit by £500 in each, but with the HB 'net profit', you'd reduce your profit by the full £1,500 straight away.

I'll just have to make sure I don't give the wrong version of my Net Profit to the wrong department ! ;^)

I'm just trying to pre-empt any problems before/if I start trading, as I don't want to waste time chasing Govt. departments telling them how to do their jobs (properly) lol

Lin_May

Hi TrueBlue1965,

If I'm not mistaken you used to post that you had finished work programme (pls accept my apology if it was not you) and you have successfully been getting NEA.
I understand those who are in work programme are not eligible to apply NEA though, am I correct that work programme completers (who finish work programme for 2 years) are qualified to apply NEA?

Appreciate your confirmation (or the answer from whoever can).

Thank you.

May

Andy2013

The tax man gets us all eventually and they take the tax from Net profit as do Housing Benefit.

For Example :
gross profit = £32,000k per annum. ( sales)
Business expenses = £16,000 per annum ( stock , postage , advertising etc)
leaving personal income of £16,000 (net profit)which is taxed at 20%
therefore tax man receives £3,200 and your left with £12,800

What you do with the £16,000 is up to you but the income tax figure will come from that , so always ensure you have the 20% tax put aside so you don't get a nasty surprise next Self Assessment !!

rhcp

Lin_May wrote: »

I understand those who are in work programme are not eligible to apply NEA though, am I correct that work programme completers (who finish work programme for 2 years) are qualified to apply NEA?

Yes, that is correct.

TrueBlue1965

Hi Lin May, Yes I was on the Work Programme for two years. I was one of the first! A total waste of time! It held me back in my attempts to start my own business.

The Work Programme I was on did have a business adviser. She was very helpful and we started to put my business together. Then, she/the company she worked for pulled out of the Work Programme because she/the company could not offer anything to those on the Work Programme. This was because those on The Work Programme are deemed to be getting enough help from our Government in how to get back in to work, lol.

Once on the work programme. You are trapped for the full two years without any hope of help or finacial support to start your own business.

While on The Work Programme. I started to put my business together and did a bit of test trading. Everything I earnt went back in to my business.

As soon as I finished The Work Programme. I moved on to Next Step. Because I had a business adviser while on The Work Programme and there is a bit of a paper trail between the two. It showed that I had been attempting to start a new business and that I had been test trading.

There was some fast talking and twisting and turnng to explain what I had been doing and when, lol. Your not allowed to trade for 6 months if you want to go on NEA. It took a bit of convincing with the Next Step adviser but I got the refarral on to NEA within a couple of weeks of finishing The Work Programme.

Im now on the NEA payments and my business is doing ok.

Hope that helps.

Lin_May

rhcp, thanks for your prompt response.

TrueBlue1965, appreciated your comment that is quite informative, than you.

s450

Guys I really still do not understand!
My adviser called me yesterday and said he had sorted out the problem.
Today I can see a payment of 66 pounds plus another of 198 pounds
As I mentioned it already, I got a payment of 66 pounds on 29th already.
On my Bank statement it reads "JSA", not NEA.
I wonder why. What do your payments look like? What is written?
Besides, why 66? Shouldn't it be 65?
And, if this is my NEA, starting from 29 to today, I got:

66 pounds on 29th
66 pounds today
198 pounds today
it is 5 x66 pounds.
LEt assume my NEA strangely is of 66 instead of 65 and that on the statment it reads JSA instead of NEA, but why then 5 x 66? It would mean 5 weeks
I was signed off on 27th January
I really do not understand anything in this story.
When should now come the next payment?

TrueBlue1965

s450, your bank statment should say the date of payment, your National Insurance number, then DWP CSHR, then £65.00+ if it is NEA payments.

The £66 payments and the £198 payment im guessing are JSA.

You need to ask JCP what payments they have made in to your account since 29th January and why! ou can also ask back office at JCP when your NEA payments start?

Have you been to sort out your Housing Benefit yet? Have you put a claim in for Working Tax credits yet?

s450

I just do not see any logical explanation to this story.
I was signed off on 27th January.
Why should I still get 198 + 66 +66 + 61.46 of JSA? It is absolut not logic.

And, yes I was called by the jobcenter and told that they have sorted out the problem and that I would get 198 pounds of my NEA today and afterwards other 10 paymets.

But today I got 198 + another payment of 66
198 is by the ways 3 x 66
why 66 and not 65 and no no no, on my bank statemant all this payments read JSA and not NEA
Who understand this chaos???

Because I am still not sure what is happening with my NEA I haven't done anythong with HB and working tax credit yet.
But I have already booked an appointment at my local council to discuss my HB claim