New enterprise allowance and universal credit

redz8848

Due to COVID I’ve ended up on universal credit but have been approved for new enterprise allowance, will the NEA payments impact my universal credit, I assume logically it shouldn’t as the NEA is for my business and is not for me! 

Any one has this situation  

andreaj1

Hi - you might want to look at this link: https://www.haringey.gov.uk/business/advice-and-support/starting-new-business/new-enterprise-allowance. It confirms that there will be no impact on your UC.

NedS

NEA payments are not treated as income and you do not need to declare them for UC purposes (DWP are paying them to you). They also do not count as income for your business so do not declare them as income into your business when completing your tax returns for HMRC. However, they do count towards your De Minimis state aid total, which I think is €200,000 under current EU legislation, but assuming your business is unlikely to exceed €200,000 of state aid over the next 3 years, you should be fine

redz8848

Brilliant, thank you all for input, that’s another worry off the mind 🙌🏼

almanak

redz8848 said:

Due to COVID I’ve ended up on universal credit but have been approved for new enterprise allowance, will the NEA payments impact my universal credit, I assume logically it shouldn’t as the NEA is for my business and is not for me! 

Any one has this situation  

Hi, 
Can you tell me how did you apply for NEA? Did you have a business plan ready as I am exploring couple of options but it is not crystalized and to be honest I need a mentor here. Did you get some? I do not need a help with setting up a business as have registered it already but rather with further steps to make it financialy profitable. Do you know if for setting up a charity or organisation you can get one too? Or if not where you can get any financial and mentoring help on it? Thanks

almanak

redz8848 said:

Due to COVID I’ve ended up on universal credit but have been approved for new enterprise allowance, will the NEA payments impact my universal credit, I assume logically it shouldn’t as the NEA is for my business and is not for me! 

Any one has this situation  

Also, check here
https://www.simplybusiness.co.uk/downloads/national-enterprise-2K-business-allowance.pdf
it says you have to stop JSA to get it

jasonwebb

I am also considering NEA.

can anybody tell me who strictly you need to have clean credit score to apply for the £5000 business loan?

poppy12345

jasonwebb said:

I am also considering NEA.

can anybody tell me who strictly you need to have clean credit score to apply for the £5000 business loan?

Please start your own thread with your question. Asking questions on the end of someone else's thread get's very confusing.

jasonwebb

poppy12345 said:

jasonwebb said:

I am also considering NEA.

can anybody tell me who strictly you need to have clean credit score to apply for the £5000 business loan?

Please start your own thread with your question. Asking questions on the end of someone else's thread get's very confusing.

Ok will do

almanak

Hi,
 It is a bit confusing is NEA for self-employed or for ltd businesses etc?
https://www.gov.uk/moving-from-benefits-to-work/starting-your-own-business

NedS

almanak said:

Hi,
 It is a bit confusing is NEA for self-employed or for ltd businesses etc?
https://www.gov.uk/moving-from-benefits-to-work/starting-your-own-business

Under UC, directors of a limited company are treated as self employed, so it makes no difference. The important point is that in order to receive New Enterprise Allowance (NEA), it must be a New Enterprise so can not be an existing business. So when you mention a limited business, I'm thinking of a business that already exists, or are you thinking of starting a new limited business?