Jobseekers if going self employed?

ceri123

My husband has been unemployed since last August. We're living in an area where there aren't many jobs going in his line of work and he's now considering going freelance as there is a real market for what he does but not on an employed level, if that makes sense.

He's currently getting income-based Jobseekers (I don't work, but get Carer's Allowance for caring for our disabled son, if that's relevant).

He raised this suggestion with the person he signs on with, who booked him an appointment with a new Advisor, supposedly someone who was more experienced in dealing with self employment. However she was next to useless, her response to most of his queries was "I don't know", and if she was able to give a response it was vague and followed by ..."I think" and didn't really help.

The main issue is when would his Jobseekers cease. If he does take the plunge, it's likely to be a slow growing business, and chances are his income will be less than Jobseekers for a while. But he's not technically jobseeking if he's working self employed, so presumably won't get Jobseekers Allowance. And at what point will income be classed as earnings - ie. if start up costs are (for a basic example only) £200, he does a job that brings in £150, he's not technically earning anything but will lose Jobseekers?

Can anyone shed light on how it all works? He doesn't even want to go down the self employment route if it's going to screw us up financially. We have 3 kids and high rent and no income and can't afford to be without any income.

Thanks.

tomterm8

Look into the new enterprise allowance and tax credits.

It's possible to work part time... i.e. in self-employment.. for upto 16 hours a week within the rules. But, all profit over the first 5, 10, or 20 pounds (depending on circumstances) will be clawed back from jsa.

After you are refered to work program your entitlement to nea stops, so better act fast.

ceri123

NEA - looked into it but no one at my JC seems to be able to help!!

WTC - already getting CTC but with WTC, what exactly would we need to inform the TC office with regard to earnings? Of he doesn't have a clue what his earnings over the year are?!

tomterm8

ceri123 wrote: »

NEA - looked into it but no one at my JC seems to be able to help!!

Well, you can always phone up the national careers service. They can give you the basic idea. Or the thread on this forum...

Basically, though, the jobcentre just refer you to the program, and they give you a group session that tells you the details. You can back out of it at first, up to the point that you sign off JSA. You'd have to notify your advisor and the NEA provider of that fact.

ceri123 wrote: »

WTC - already getting CTC but with WTC, what exactly would we need to inform the TC office with regard to earnings? Of he doesn't have a clue what his earnings over the year are?!

If you go through the NEA scheme you'll be told how to do a cash flow forecast. You can use this to predict earnings; or, alternatively, sometimes you can use the income you made last year.

Citizens advice might be able to help... or call up the tax credit line and ask them.

Or go to the benefit board on this forum and ask there. I haven't claimed tax credits so I am afraid I'm not able to help you much!

Bottom line is that the thing that gets most self employed people on tax credits is proving (a) that you are trading and (b) you are doing the number of hours that you say you are doing.

The local chamber of commerce might be able to help you. The jobcentre's going to be pretty useless, I'd say, you're going to have to get your advice from other sources.

Ginger_Nut

I have read that if you are on the work program that you aren't entitled to qualify for the new enterprise scheme as its on the direct gov web site?
I am under the work program who are useless I asked them to refer me to the dude in my local office as I'm looking to set myself up and I need some money to bridge the gap from coming off JSA to being able to support myself and the response was the only dude we know under that name works in the homeless dept and you can do the research yourself and email me back and I try and help ....these people are useless I'm looking to better myself and they aren't interested
I got told about this scheme by a business advisor who I have seen off my own back and she thinks I'm going to be approved as I have put my hand in my own pocket and brought most of the items I need so far and I only need a bit of support financially for the marketing and that's all I'm asking for

I feel as though I am hitting a brick wall with the dole office as no one seems interested in helping and I was under the impression that it is there job to support you if you want to go down the road of working for your self?
Or am i way off base here??

Or if any one else can suggest financial support with out having to pay back I don't need much only £500!!( if that!)

Cheers every one:)

tomterm8

Ginger_Nut wrote: »

I have read that if you are on the work program that you aren't entitled to qualify for the new enterprise scheme as its on the direct gov web site?

That's true. You are not qualified for NEA.

Ginger_Nut wrote: »

Or if any one else can suggest financial support with out having to pay back I don't need much only £500!!( if that!)

Cheers every one:)

You can start a small business on JSA, and grow it until the point that you are making enough money that you no longer qualify for JSA.

To be fair, while you are doing this any profit your business makes will be deducted from your JSA.

Getting financial support will be difficult. If you are in the right age bracket you might be able to get support from the Princes trust. You might be able to borrow money on a credit card if your credit file isn't too damaged. If you don't have family members willing to lend you the money you'll probably have to find a way to start without any money. It's possible to do this but hard.