Put Off Going Self Employed As A Writer

Truegho

sammyjammy wrote: »

It basically means that under JSA you could declare the work and receive your JSA, if you started declaring it under UC then they would assess the hours you work as you receiving minimum wage even if you weren't. If you were already declaring under JSA there would be a period of time when the JSA rules would still apply to you. This TP is broken if you declare a change of circumstances. It's all quite complicated and we don't know how it will work in practice but it will be some time before you would be transferred over to UC anyway.

Cheers. Yes, I agree, the rules ARE quite complicated. As I say, when I rang WTC up this morning and declared that I wanted to go self-employed as a writer, I expected that it would just be a case of claiming as a self employed person. However, once I told her that my projected profit in the first year of trading would start off at just over £200 per month, coupled with my intention of working 30hrs pwk, well, it all got very discouraging and disheartening.

Given such a red-tape minefield, just HOW can small businesses just starting off be expected to grow, if they are knocked back before they even begin? I mean, just how many new businesses start off from day one earning the national min wage?

pinkypoopydoo

Truegho wrote: »

Cheers. Yes, I agree, the rules ARE quite complicated. As I say, when I rang WTC up this morning and declared that I wanted to go self-employed as a writer, I expected that it would just be a case of claiming as a self employed person. However, once I told her that my projected profit in the first year of trading would start off at just over £200 per month, coupled with my intention of working 30hrs pwk, well, it all got very discouraging and disheartening.

Given such a red-tape minefield, just HOW can small businesses just starting off be expected to grow, if they are knocked back before they even begin? I mean, just how many new businesses start off from day one earning the national min wage?

To be honest, I think the reason you've had this problem is because writing is probably classed as something that can be done alongside looking for work, rather than instead of job seeking or actual minimum wage work.

I've not had too many problems, so far, with the tax credit people, after I spoke to them about going self employed - the difference being, I think, that my business is what would be seen as a "proper" business, if you see what I mean? I've come across lots and lots of stumbling blocks on my way to self employment, but TCs and WTCs is not one of them.

pinkypoopydoo

(I must add though - I cannot comment on whether writing should be classed as "proper" work, as I've never done it. I was not commenting based on what I think, just what I believe may be a general perception)

Truegho

Truegho wrote: »

Cheers. Yes, I agree, the rules ARE quite complicated. As I say, when I rang WTC up this morning and declared that I wanted to go self-employed as a writer, I expected that it would just be a case of claiming as a self employed person. However, once I told her that my projected profit in the first year of trading would start off at just over £200 per month, coupled with my intention of working 30hrs pwk, well, it all got very discouraging and disheartening.

Given such a red-tape minefield, just HOW can small businesses just starting off be expected to grow, if they are knocked back before they even begin? I mean, just how many new businesses start off from day one earning the national min wage?

Here's a lady who seems to be making a pretty good go of being a "self employed" writer: https://www.facebook.com/pages/Self-Employed-Writer/143287295698231

Wicked_witch

I'm not on JSA or any benefit with conditionality at the moment, but I consider my writing a hobby that might make some money (it hasn't yet and won't for at least a few more months), not a job. Even if I spent 30 hours a week, it wouldn't occur to me to declare it in that way, so it's useful to have that info sammyjammy.

How do they differentiate between a hobby that makes declared money and a job? Or does it become a job in the dwp's eyes as soon as you make money?

Truegho

Wicked_witch wrote: »

I'm not on JSA or any benefit with conditionality at the moment, but I consider my writing a hobby that might make some money (it hasn't yet and won't for at least a few more months), not a job. Even if I spent 30 hours a week, it wouldn't occur to me to declare it in that way, so it's useful to have that info sammyjammy.

How do they differentiate between a hobby that makes declared money and a job? Or does it become a job in the dwp's eyes as soon as you make money?

Good question. How DO they differentiate between a money-making hobby and a paid job? A very grey area, methinks.

pinkypoopydoo

Truegho wrote: »

Good question. How DO they differentiate between a money-making hobby and a paid job? A very grey area, methinks.

I assume that is why the ruling making it necessary to earn at least minimum wage after a set-up period will be brought in with UC.

If it doesn't earn you minimum wage, then it's a hobby and you must look for more profitable work.

Wicked_witch

I suppose once you're making money, hmrc have to know and then it's a job. I had just never thought of it in that light as writing has been my hobby since I was 10.

Truegho

pinkypoopydoo wrote: »

I assume that is why the ruling making it necessary to earn at least minimum wage after a set-up period will be brought in with UC.

If it doesn't earn you minimum wage, then it's a hobby and you must look for more profitable work.

What a crazy assumption that your business must earn a minimum wage before it can be classed as a business. Totally, totally ridiculous! How the hell are you supposed to even BEGIN a business if you have these looney red-tape barriers?

pinkypoopydoo

Truegho wrote: »

What a crazy assumption that your business must earn a minimum wage before it can be classed as a business. Totally, totally ridiculous! How the hell are you supposed to even BEGIN a business if you have these looney red-tape barriers?

The minimum wage rule doesn't kick in immediately - as far as I'm aware, you get 12 months to build from scratch to proving you can earn minimum wage. TBH, I don't think that the requirement to earn minimum wage after TWELVE MONTHS of trading is ridiculous at all. That's a full years leeway to grow. Not really looney red-tape at all.