Universal credit/ self employment/ business owner

Mimim_2

Hi All ❤
I will try to be as specific as I can.. I have been receiving UC since October 2018 my children will be 3 and 4 this year. I'm a qualified hairdresser, studying barbering (almost done). I have been applying for many jobs in the industry, unfortunately not been the right candidate (mostly because of not enough experience or my age - 27). 
Hairdresser in my town going back home. She asked me to take over her salon and clients. 
I don't have much savings (enough to stock a bit of product in). My husband works only part-time. Rent in this place costs around £80 (inc. Water and electricity) - Private. 
I need insurance too. It will cost around £30 a month.
As far I research I don't have to register my business for up to 3 months. Do I have to report it to the job center? How would it affect UC?
As I'm sure for the first months it wouldn't bring any income for me I will be probably working to pay my bills and stock, promotions. 
It is any financial help for starting businesses? I'm not interested in a loan. I also need help with creating a business plan.
Any help/ guidance will be much appreciated. 
Thank you 🙏

tomtom256

Speak with your work coach and as about the New Enterprise Allowance scheme. It will give you support including a business plan and if you do it before you start your self-employment you will get a small top up for a set period.

You need to declare any work as soon as you start it, as you will need to attend a Gateway Intervention, as it is a new business, if you are classed as gainfully self-employed, then you should be eligible for a start up period.

However this would depend on your regime, which I think would be Intensive Work Search?

calcotti

This guide may be of help https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide
You will have to report income and expenditure every month. The difference will be taken into account as your earnings when calculating your UC entitlement for the month.
After 12 months you will be assumed to earn a certain amount each month even if you earn less (this is known as the Minimum Income Floor).

Mimim_2

tomtom256 said:

Speak with your work coach and as about the New Enterprise Allowance scheme. It will give you support including a business plan and if you do it before you start your self-employment you will get a small top up for a set period.

You need to declare any work as soon as you start it, as you will need to attend a Gateway Intervention, as it is a new business, if you are classed as gainfully self-employed, then you should be eligible for a start up period.

However this would depend on your regime, which I think would be Intensive Work Search?

Thank you, I have a meeting with my coach on 3rd March but hairdresser wants me to take over the business from  9. Do you know how long takes to get a decision about allowance?

NedS

You will unlikely qualify for New Enterprise Allowance if you intend to start trading immediately. You would need to produce a business plan and have it approved before you start trading to be eligible, which realistically can take 6-12 weeks, so if you want to take over the business immediately the timescales for New Enterprise Allowance simply will not work for you. Your Work Coach will be able to advise you about this further.

NedS

A bit more about the process behind New Enterprise Allowance (NEA):

It is for people interested in starting a new business.

The first step is to be referred and to attend a NEA information session called a Link-Up Start-UP (LUSU) meeting. It can take up to 2-3 weeks for your work coach to get you booked onto the next available session depending upon availability in your area.

Once you have attended the LUSU meeting, you will decide with your work coach if you wish to proceed with NEA. If you do, your work coach will refer you to a one-to-one meeting with your NEA mentor. From the date you first meet with your mentor, you have up to 12 weeks to produce a business plan, submit it and have it approved by the NEA scheme. This phase of the process will likely take 4 weeks minimum even if you have already done much of the work and think you already have a stellar business plan. More normal is to take 8-12 weeks.

Once your business plan is approved, you will agree a date with your work coach to officially start trading for the new business. You can not start trading before the business plan is approved, otherwise it will not be classified as a new business and you will not be eligible for NEA.

Assuming you are successful, NEA pays £65/week for the first 13 weeks (1-3 months), and then £33/week for the next 13 weeks (4-6 months). As you can see above, it is quire process-driven. If the process and timescales work for you it can be a good scheme for supporting new businesses, but if you want to start trading in a couple weeks it's probably not going to work for you with those timescales. It's up to you if you can make the timescales work for you.

calcotti

Do make sure you understand what you are letting yourself in for. Have you had a chance to look at business accounts for the existing business?

0044

Hi all, 
 I am a self-employed taxi driver who is claiming universal credit.  I would like to find out if there is anybody else in my situation. My work coach has advised me that I cannot claim for business expenses my phone bill which I use to receive work and car-rental as I hire the car.  Does anyone know what exactly one can claim from if you are self-employed taxi driver claiming universal credit? If you do where can I get this information? I have looked through the guidelines and the guidelines state one can claim for different things through self-employment universal credit UCD5 namely  

the total amount your business received, how much your business spent on different types of expenses, such as travel costs, stock, equipment and tools, work clothing and office costs how much tax and National Insurance you paid, any money you paid into a pension 

yet my work coach says I can’t claim for this any advice? 

 As a taxi driver can I only claim my mileage and nothing else? 
Thanks 

calcotti

0044 said:

Hi all, 
 I am a self-employed taxi driver who is claiming universal credit.  I would like to find out if there is anybody else in my situation. My work coach has advised me that I cannot claim for business expenses my phone bill which I use to receive work and car-rental as I hire the car.  Does anyone know what exactly one can claim from if you are self-employed taxi driver claiming universal credit? If you do where can I get this information? I have looked through the guidelines and the guidelines state one can claim for different things through self-employment universal credit UCD5 namely  

the total amount your business received, how much your business spent on different types of expenses, such as travel costs, stock, equipment and tools, work clothing and office costs how much tax and National Insurance you paid, any money you paid into a pension 

yet my work coach says I can’t claim for this any advice? 

 As a taxi driver can I only claim my mileage and nothing else? 
Thanks 

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