Starting a business

Kieran_Lovegrove

Having spent about nine months seeking work, and living on Job Seekers' Allowance, I'm considering starting my own business. I have an idea and a reasonable plan, technical specifications, even wireframes for my application. I have the skills to build my product and I believe I know the people who can market it well.

However, the Jobcentre says that if I work for more than 16 hours per week on this, I can no longer rcieve Job Seekers' Allowance which, regrettably, I can't afford to do without.

I have been doing some reading and understand that I can claim Working Tax Credits. These should be for a similar amount and are available if I'm working more than 30 hours per week. It appears that I can do so even without earning an income from my work, provided my work is being done with the intention of earning an income in future (which, obviously, it is).

What I'm worried about is the gap, between signing off from Job Seekers' Allowance and receiving my first Working Tax Credits. Is there any way to mitigate this, or to receive assistants in the meantime? I understand that the Working Tax Credit will be backdated, but I can't borrow the money.

Flyonthewall

You should check out this on the new enterprise allowance scheme: https://www.gov.uk/government/collections/new-enterprise-allowance-campaign

It's basically to get you started with your own business and still get benefits.

I don't know about WTC so can't help there. As far as JSA goes, not sure how they'd know how much time you're spending on that if you're still applying for jobs too as you are now but anyway, they do offer a scheme now so it's certainly worth checking out.

Kieran_Lovegrove

Yes, I have looked at this, but unfortunately it doesn't do anything for me. Since my product will likely take 12-15 months of full-time work to develop, I'm still going to have to make the transition to Working Tax Credits at some point. And it makes sense to do so immediately, as it'd give me slightly more money. I am disabled and am entitled to a disabled component to both Job Seekers' Allowance and Working Tax Credit, but no such component exists for the New Enterprise Allowance.

Kieran_Lovegrove

In terms of working and looking for jobs and just not declaring my time, this is what I have been doing. I'm working about 25 hours per week. The thing is, I want to be working 40-60 hours per week and this just isn't feasible whilst applying for jobs, maintaining my CV, completing technical questionnaires and the occasional interview. Recruiters take up a lot of my time, usually with bluster and !!!!!!!!. My problem is that if I'm going to look for work, I'm going to have a proper go of it. And this distracts heavily from being productive and working the required hours in the development of my business.

ohreally

Is it too simplistic to suggest maintaining your focus on building a fledgling business while keeping JCP of your back by sending out applications and cv's but controlling the time you spend on this side?

Kieran_Lovegrove

I'm afraid it is. I've been claiming Job Seekers' Allowance for nine months and so for the last three months I have been enrolled on the Work Programme (this starts after 12 months for most people, but after six for the disabled). As well as my fortnightly signing appointment, which is a farce, I have to meet my Work Programme sponsor. This is also a farce in that they do nothing at all to actually assist me in finding work. They do, however, pay much more attention to what I'm doing and will even chase recruitment agencies that I've applied through, without asking me.

Flyonthewall

Kieran_Lovegrove wrote: »

I'm afraid it is. I've been claiming Job Seekers' Allowance for nine months and so for the last three months I have been enrolled on the Work Programme (this starts after 12 months for most people, but after six for the disabled). As well as my fortnightly signing appointment, which is a farce, I have to meet my Work Programme sponsor. This is also a farce in that they do nothing at all to actually assist me in finding work. They do, however, pay much more attention to what I'm doing and will even chase recruitment agencies that I've applied through, without asking me.

I know you gave reasons before against the enterprise allowance, but you can't do that if you're on the work programme anyway.

When you first start the WP they ask you to sign forms which basically mean you give your permission for them to contact companies.

Kieran_Lovegrove

Oh, I know. They're not doing anything that they shouldn't be, it just means that I can't just send off a couple of applications and ignore them to keep the Jobcentre happy.

When I was enrolled on the Work Programme, it wasn't optional - I had to do it in order to continue to receive my benefit. And I wasn't taking this option seriously at the time, anyway, so it seemed like all positives. The idea of someone helping me find work was great! I didn't know, at the time, of course, that they'd do more or less nothing and that anything they do, I was already doing and better.

Not that it's a bad scheme, it just doesn't work for me. I see people in there who clearly need help, to learn basic skills, to dress themselves appropriately. Which is a sad state of affairs and thank goodness there's a programme that helps them. I'm just not among them.

Flyonthewall

Kieran_Lovegrove wrote: »

Oh, I know. They're not doing anything that they shouldn't be, it just means that I can't just send off a couple of applications and ignore them to keep the Jobcentre happy.

When I was enrolled on the Work Programme, it wasn't optional - I had to do it in order to continue to receive my benefit. And I wasn't taking this option seriously at the time, anyway, so it seemed like all positives. The idea of someone helping me find work was great! I didn't know, at the time, of course, that they'd do more or less nothing and that anything they do, I was already doing and better.

Not that it's a bad scheme, it just doesn't work for me. I see people in there who clearly need help, to learn basic skills, to dress themselves appropriately. Which is a sad state of affairs and thank goodness there's a programme that helps them. I'm just not among them.

I disagree, it is a bad scheme. It doesn't work for anyone (except maybe one or two who probably would have found jobs anyway without them).

Their "courses" are long and it's all stuff you should know or can find out online. Too many advisors work harder on getting people sanctioned or forcing them to travel miles to see them daily/a few times a week for no reason rather than getting people a job. They then take credit for people getting jobs that they had no part in helping them get.

The people who need help now will no doubt still need help by the end of it. The idea of the scheme is great, but the reality for most is very different.

Getting slightly off topic though lol.

I'm not sure there is anything you can do if there is a gap between JSA and WTC aside from trying to save money and perhaps check out the boost your income section on here which might give you some ideas of how to make a little extra cash to keep you going for a short while.

Kieran_Lovegrove

Today, I have had my own Work Programme-related nightmare (see my thread here: showthread.php?t=5005182 - apparently, as a new user, I cannot add links... Even to over pages on this board).

As such, I've decided to take the plunge, come what may. I've registered as self-employed this morning with HMRC, opened a business bank account with NatWest, taken my CV down from the various boards where I'd had it advertised and sent an email to all the recruiters I've been speaking to, letting them know that I'm no longer looking for work. I am now going to call and request the paperwork for Working Tax Credits.

When should I tell the Jobcentre and what date shall I give them? Obviously I won't sign off today - I'll wait until I receive the forms for Working Tax Credits and get them filled out. I understand that I can give them a date up to seven days after the date that I send the forms off. Should I do that and then give the Jobcentre the same date? This way HMRC should receive and start processing the paperwork at least a few days before my JSA stops. Do I receive a pro-rata JSA payment when I sign off?