A Couple Going Self Employed - Entitlement?

YKay

Myself and partner have been long term unemployed and would be both interested in working together to set up our own business together.

Would we be entitled to claim anything as obviously for the first 6 - 12 months income would be very low (if even any income for the first month of so).

pmlindyloo

YKay wrote: »

Myself and partner have been long term unemployed and would be both interested in working together to set up our own business together.

Would we be entitled to claim anything as obviously for the first 6 - 12 months income would be very low (if even any income for the first month of so).

How old are you both, any children/disabilities and how many hours would you be working?

In theory you may be able to claim HB, CT support and possibly tax credits (if you meet the age and hours criteria for tax credits)

The rules are really toughening up about being self employed and having a viable business and although there are allowances made for starting up you do need to have a clear business plan.

It might be better if one of you finds full time work and the other starts up the business - good time of the year to find some Christmas work.

I see from your previous posts that you have tried the Enterprise Scheme but decided self employment wasn't for you. Would they allow you to try again?

YKay

pmlindyloo wrote: »

How old are you both, any children/disabilities and how many hours would you be working?

In theory you may be able to claim HB, CT support and possibly tax credits (if you meet the age and hours criteria for tax credits)

The rules are really toughening up about being self employed and having a viable business and although there are allowances made for starting up you do need to have a clear business plan.

It might be better if one of you finds full time work and the other starts up the business - good time of the year to find some Christmas work.

I see from your previous posts that you have tried the Enterprise Scheme but decided self employment wasn't for you. Would they allow you to try again?

We currently claim HB & CT Support & JSA.

Obviously our JSA allowance would be stopped if we went self employed together, but I hoping something would be able to replace the JSA income.

You mentioned Tax Credits, would we still get around the same as JSA (£226 every 2 weeks total couple rate) ?

Our ages are 23 & 25.

Thanks.

YKay

Bump - Any advice?

Where would be the best place to talk about what I am entitled to if we went self employed?

Job Centre, Council Office, Citizens Advice.. ?

NYM

YKay wrote: »

Bump - Any advice?

Where would be the best place to talk about what I am entitled to if we went self employed?

Job Centre, Council Office, Citizens Advice.. ?

I think the best place to check out first would be HMRC. If they don't accept that your self employment is genuine, you wouldn't be entitled to WTC.

_CC_

YKay wrote: »

We currently claim HB & CT Support & JSA.

Obviously our JSA allowance would be stopped if we went self employed together, but I hoping something would be able to replace the JSA income.

You mentioned Tax Credits, would we still get around the same as JSA (£226 every 2 weeks total couple rate) ?

Our ages are 23 & 25.

Thanks.

What is the business do you intend to set up? Would it not, even in it's early stages, be able to generate £113 per week between you?

Do you have any form of business plan?

BigAunty

The Princes Trust also have a scheme to help those under 30 (non-graduates, I think) into self employment and offer mentoring, help with a business plan, etc.

I believe the age to claim working tax credits (for those without dependents, afaik) is 25 and over?.

As suggested, do look into the criteria for working tax credits as the criteria for the self-employed receiving it have recently changed - it used to be fairly relaxed but the govt have signalled their unhappiness with the long term benefit dependency of the self employed and seem to want to kill off unviable/hobby/micro businesses. The HMRC definitely target the self employed with compliance investigations.

It will also change once again if/when Universal Credit is bought in to replace tax credits so keep your eye on that, too. Basically, they expect the self employed under UC to earn a Minimum Income Floor (the national minimum wage) from their businesses within a year of starting them up. Not sure when UC will be bought in nationwide. Do you have the capacity to earn around £200 each from the business, according to your business plan, and if so, when?

You can model your benefit entitlements on the Turn2us online benefit calculator - use it to look at the scenario that you are proposing (2 self employed, low income).

Citizens Advice Bureau help people understand their benefit entitlements.