Disabled and setting up

Buzzard1985

At the moment in time I claim Employment Support Allowance and DLA.

My health has got better and I wish to return to employment:). Self employment is something I've thought of and decided I might as well try rather than die wondering what if!


I've spent 2 months looking at HMRC website on self employment and sort of got to grip with allowances etc.

It would be wize to start with one idea and therefore concentrate on one idea for the moment.

My biggest fear is coming off benefit and land in the red with rent etc. I can claim Working Tax Credit for 16 hours due to disability due to military service.

Ideally I strive to pay my own rent and have no State benefit going in to my account. However at the start I will need all the help I can get.

Is the current climate the correct time to set up? At the moment i'm juggling figures on what to charge, trying to keep as low as possable.

How does Working Tax Credits work it terms of telling them my income? I also fear a massive overpayment bill that apears to happen to people.

Thanks for reading .

paulofcambs

If there were more people like you, this country would be a far, far better place methinks. You are to be applauded.

Before coming off benefits, you must be as certain as you can be that you have done your homework. This means doing some ‘market research’. You need to find out if there is a real and sustainable market for the services that you intend to offer and how big the market is. You also need to determine what people are prepared to pay you for your service. This will give you some idea of your likely gross income. Whatever you do, be conservative. Do not overestimate how big the market is or how much you can charge. Otherwise, your income will be much less than you expected it to be.

From the gross income, you will need to deduct some or all of the following costs:
- Accountancy fees
- Start-up costs
- Advertising
- Insurance (public liability)
- On-going costs (materials etc)
- Company tax

This will give you your company net income.

From this, you can then calculate the max salary that you can draw on from the company on which you will need to pay Tax and NI. This will give you your personal net income. Having calculated this, you will then be able to determine whether it is sufficient to pay your bills.

Don’t forget, if you are ill, then you will have no income from the company. Therefore, you will need to build up some cash reserves.

Charging people as little as possible for your services is a bad idea. If you charge less than the going rate, people will assume that the service that you provide is of poor quality and won’t do business with you. As an example, suppose that I were to offer you a Rolls Royce for £1,000 – what kind of condition would you expect it to be in? Also, if you charge too little for your service, you could end up worse off than you are now.

As to whether you should concentrate on one or more ventures, my advice would be to market research every option that you can think of and then concentrate on the ones that look the most promising.

Hope this helps

Be lucky

Buzzard1985

paulofcambs wrote: »

If there were more people like you, this country would be a far, far better place methinks. You are to be applauded.

Before coming off benefits, you must be as certain as you can be that you have done your homework. This means doing some ‘market research’. You need to find out if there is a real and sustainable market for the services that you intend to offer and how big the market is. You also need to determine what people are prepared to pay you for your service. This will give you some idea of your likely gross income. Whatever you do, be conservative. Do not overestimate how big the market is or how much you can charge. Otherwise, your income will be much less than you expected it to be.

From the gross income, you will need to deduct some or all of the following costs:
- Accountancy fees
- Start-up costs
- Advertising
- Insurance (public liability)
- On-going costs (materials etc)
- Company tax

This will give you your company net income.

From this, you can then calculate the max salary that you can draw on from the company on which you will need to pay Tax and NI. This will give you your personal net income. Having calculated this, you will then be able to determine whether it is sufficient to pay your bills.

Don’t forget, if you are ill, then you will have no income from the company. Therefore, you will need to build up some cash reserves.

Charging people as little as possible for your services is a bad idea. If you charge less than the going rate, people will assume that the service that you provide is of poor quality and won’t do business with you. As an example, suppose that I were to offer you a Rolls Royce for £1,000 – what kind of condition would you expect it to be in? Also, if you charge too little for your service, you could end up worse off than you are now.

As to whether you should concentrate on one or more ventures, my advice would be to market research every option that you can think of and then concentrate on the ones that look the most promising.

Hope this helps

Be lucky

Thank you for your reply.

A few hours ago I got a phonce call for a job interview this week:T. Means some security at least and chance to deal with my itchy hand ie save!:) I intend to start one buisness up that could be done from home, therefore reduced overheads. To me makes sense.... I would target with leaflets within 40 miles of my home. To target each house would cost ........... So I would need to be selective ie do I flood the local council estate or private dwellings...the latter.

I was a guy that would be in hospital with Doctors around giving life saving care a few times. For the past 2 years my health has got better and better though still bad days. I am 20 years of age and by God I shall try each and every idea strivng for my goal. People laugh when I say that and my family would just think I've lost the plot again if I was to suggest my intentions.

Years I have realised to get what i want in life, nice country house more so farm, horses , BMW , Range Rover and livery yard I would need to work my !!! off. If my mates read this post they probably say ''get your head of the clouds'' It is that sort of attitude I had through school and till recently.

I can recall watching TV where Hiliray from Dragon's Den stated she made many a sacrafice. She is one person I would LOVE to meet. I see the drive she had starting out in me. Could I crap on people to make that extra buck.... I don't know. But one thing is for sure, I would be the Secret Millionaire as well as the unknown donar to local groups.


My biggest fear is making the first step out. But as I said fingers crossed this part time job will come fourth as this will offer more income. My credit rating is shot to bits, the banks will not touch me ! So I reackon any money I require for Ads etc will be put down from my own sweat. Goes tits up, tears will come but the Bailiffs will never knock on my door.

heathcote123

Buzzard1985 wrote: »

At the moment in time I claim Employment Support Allowance and DLA.

My health has got better and I wish to return to employment:). Self employment is something I've thought of and decided I might as well try rather than die wondering what if!


I've spent 2 months looking at HMRC website on self employment and sort of got to grip with allowances etc.

It would be wize to start with one idea and therefore concentrate on one idea for the moment.

My biggest fear is coming off benefit and land in the red with rent etc. I can claim Working Tax Credit for 16 hours due to disability due to military service.

Ideally I strive to pay my own rent and have no State benefit going in to my account. However at the start I will need all the help I can get.

Is the current climate the correct time to set up? At the moment i'm juggling figures on what to charge, trying to keep as low as possable.

How does Working Tax Credits work it terms of telling them my income? I also fear a massive overpayment bill that apears to happen to people.

Thanks for reading .

Yes now is always the ideal time to start up, things will get better - don't wait till then when every man and his dog is jumping into competition. You'll learn a lot more in tough times than you will good.

Buzzard1985

Is a buisness plan required even if I will not go to a bank for loans? Do I need to set up a Buisness Account or would a run of the mill current account be fine? I would use my current account for buisness and set up another for regular payments ie DLA and deductions ie rent. Another thought is getting a bill for Tax and not having the money to pay when required. How can I ensure I will have the money? For every £100 in to buisness save ....... Might sound a daft question but rather ask than not...

Thanks

paulofcambs

When I was at school, a class teacher once went from pupil to pupil and asked each, in turn, what we intended to do when we left school. I said University. The whole class, including the teacher, collapsed in fits of laughter.

I changed schools.

My new form master told me that there were some bright people at university - BUT - most were just ordinary people who worked hard.

I'm now a BSc. (Hons), PG Cert., PG Dip., MBA. They were obtained from reputable universities - not one of those tin-pot, ex-6th. form colleges that masquerade as universities these days.

You know what is surprising? I ain't that bright - but a lot brighter than the teacher who laughed at me.

I'll not pretend that it was easy. It wasn't. I worked my little cotton socks off - but I got there.

If you are going to start a business, you will also need to work your socks off. However, you also need a vision and a realistic plan that will allow you to achieve your goal.

As for money/credit, you and the company are separate legal entities and your credit rating will not affect that of your company. As long as you create a reasonable business plan, you should have no issues opening up a business bank account and getting a modest loan. Examples of business plans can be found on line - just google.

Hope that this helps.

paulofcambs

If you set up a company, then legally, your business affairs must be kept separate from those of the company. Therefore, yes, you will need to open a business account. You will only need a business plan if you need a company loan.

If you start a company, you will also need an accountant.

Buzzard1985

I intend to set up as a sole trader. A so my shocking credit score would not hamper a loan to buy items. I have what I wear basically, will the bank not flee since I have nothing?

Thanks for the replys )

Buzzard1985

Had a look at it appears my credit score will be looked at?

heathcote123

paulofcambs wrote: »

If you set up a company, then legally, your business affairs must be kept separate from those of the company. Therefore, yes, you will need to open a business account. You will only need a business plan if you need a company loan.

If you start a company, you will also need an accountant.

I'm only really familiar with ltd co's, but I'm not sure you have to keep things seperate if you are a sole trader, just need to keep good records.

I'm pretty certain that having a poor personal credit rating will also hamper getting business finance. It's common sense really - if someone is unable to run their own finances, it's a fair bet they'll !!!! it up for a company too.

heathcote123

Buzzard1985 wrote: »

Is a buisness plan required even if I will not go to a bank for loans? Do I need to set up a Buisness Account or would a run of the mill current account be fine? I would use my current account for buisness and set up another for regular payments ie DLA and deductions ie rent. Another thought is getting a bill for Tax and not having the money to pay when required. How can I ensure I will have the money? For every £100 in to buisness save ....... Might sound a daft question but rather ask than not...

Thanks

No, theres now law stating you need a business plan, and some businesses don't really need much of one - at least at the start.
But a bank will certainly want to see one.

As I say, I'm only familiar with the ltd co side of things, but for a small non-vat registered one man business, work out how much money you've made each month (obviously taking onto account expenses/stock which are generally deductable) and stick at least 25%-30% of it by, and you probably won't go too far wrong.