Grants and Startup Benefits

[uk26]

My partner and I are looking to start up in business, we have been told by the job centre that we can get £50 each per week for 16 weeks to help when we are starting up.

Does anyone know if you can also claim Tax Credits aswell?
We have registered a limited company for the business and we are looking to be able to be financially stable while the business is starting up.

Been told by the council that we can get full housing benefit providing our income does not exceed a certain limit.

So to keep most of the money in the business for development of the business, we intent to restrict our income to £102.75 between us per week so we get maximum housing benefit.
Once the business is getting a regular income to support a full time wage each then we will come off housing benefit or be lowered at least to come inline with our income in future.
Is this way of thinking legal and above board?

As we have setup a limited company, im under the understanding that the council would only take into account the income we get out of the business as a wage and not the business total net profit?
Can anyone also let me know if there are any thing we can get, like a marketing grant to get our first lot of adverts sorted?

We have been on JSA now for long enough and want to become independant for once and a way of doing this for us is to do our own business

 

[Billmccallum]

Much depends on where you live or where the business will be, the variety of support programmes vary across the country.

Try your local council web site for advice, or send me a PM with your postcode and I can run a search for you.

 

[oliverbanks]

Princes Trust is a good one.

 

[uk26]

Thanks guys, does the Princes Trust still do a marketing grant, i recall it used to be £100.00?

 

[oliverbanks]

Don't know the exact specifics. Last time I checked some of the grants range from £500 - £5,000.

Email them and explain your project etc - your name gets around, and they'll probably give you a phonecall asking about you, your business, aims and what the money would go towards.

 

[uk26]

seems you can only get grants from Princes Trust if under 25, im 29

 

[VeraJ]

Am I alone in thinking there is something rather weird about job centres offering extra benefits to people who may have no aptitude for business?

Is this about getting people off the unemployment register?

Crikey, I bet this wastes a lot of tax payers money...

My partner and I are looking to start up in business, we have been told by the job centre that we can get £50 each per week for 16 weeks to help when we are starting up.

 

[Indigo Cherry]

Am I alone in thinking there is something rather weird about job centres offering extra benefits to people who may have no aptitude for business?

Is this about getting people off the unemployment register?

Crikey, I bet this wastes a lot of tax payers money...

NO! A lot of people get their "aptitude for business" by starting their business and growing it! All the Job Centre is doing is helping these people start their business and I for one think it is a great help and a great incentive for them.

Anything that helps people get their business off the ground is good for the country and is fine by me!

 

[Chris Ashdown]

Please double check your sales projections before you start as most if not all new starts without previous experience find sales far harder than they think

A brief idea of what you intend to do would enable much better help to be given on this forum

 

[papverpoppies]

Am I alone in thinking there is something rather weird about job centres offering extra benefits to people who may have no aptitude for business?

Is this about getting people off the unemployment register?

Crikey, I bet this wastes a lot of tax payers money...

Its too much like hard work for most people, so they will not even enterain the idea. Far easier for them to just take the money, and keep signing on.

I, think it is good, that the JC are pointing people in the right direction, how they set about making that business work is then down to them.

If, it gives people a start and helps them get back into work, and maybe one day giving someone else a job - I am all for it.

Not everyone who signs on, or finds themself out of work is a scrounger, and just out for what they can get.

Good Luck Poster.

Poppy xx

 

[Indigo Cherry]

Couln't agree more Poppy!

 

[JohnsonandJohnson]

My partner and I are looking to start up in business, we have been told by the job centre that we can get £50 each per week for 16 weeks to help when we are starting up.

Does anyone know if you can also claim Tax Credits aswell?
We have registered a limited company for the business and we are looking to be able to be financially stable while the business is starting up.

Been told by the council that we can get full housing benefit providing our income does not exceed a certain limit.

So to keep most of the money in the business for development of the business, we intent to restrict our income to £102.75 between us per week so we get maximum housing benefit.
Once the business is getting a regular income to support a full time wage each then we will come off housing benefit or be lowered at least to come inline with our income in future.
Is this way of thinking legal and above board?

As we have setup a limited company, im under the understanding that the council would only take into account the income we get out of the business as a wage and not the business total net profit?
Can anyone also let me know if there are any thing we can get, like a marketing grant to get our first lot of adverts sorted?

We have been on JSA now for long enough and want to become independant for once and a way of doing this for us is to do our own business

As I understand, you can claim working tax credits, you have to make an assumption of your first years income; to clarify this you would be better of contacting the HRMC WTC department and they will give you some sound advice.

If you have a business plan, feel free to send me a private message, I could be able to assist you further, in terms of funding.

All the best

 

[Matt1959]

I think that anything that encourages people to set up on their own has to be a good thing. There will always be failiures where the benefits dished out are arguably wasted but hopefully the success stories will make up for that?

 

[VeraJ]

Thanks for your comments. I would certainly be a supporter if it works.

It would be interesting if we could see statistics on how many people actually create self sustaining businesses after taking the benefit money. Unfortunately such information isn't published to my knowledge so none of us actually know if it works.

I hope it does work because I don't want to keep paying my taxes to fund job avoidance schemes...

I, think it is good, that the JC are pointing people in the right direction, how they set about making that business work is then down to them. If, it gives people a start and helps them get back into work, and maybe one day giving someone else a job - I am all for it.

 

[Esk247]

Remember to keep records of sales and outgoings etc. Keep a tight grip on figures like that as then you can provide detailed numbers to HMRC or JobCentre if required at a future date. Sometimes they muck it up and try to claim money back just because you're in business and all of a sudden they assume you're a millionaire.

Not sure about Tax Credits but you can always ask an adviser for the facts and get them to confirm details based on your projected earnings. Remember to check that you're not over inflating what you think the sales will be, from my experience, you're lucky to make any sales in the first couple of weeks and after that it takes months to make enough sales to put you in to profit.

 

[Cheapest Printing]

Is this scheme available everywhere?

 

[Esk247]

Is this scheme available everywhere?

What? the £50 per week for 16 weeks? I believe it is available nationwide, providing you are a JobSeeker looking to start up your own business. Not sure how long you have to be out of work for, 6 months i think.

 

[lee13]

I've just set up a business, straight off the back of my last job where I was an employee.

I've spoken to the council and the Princes Trust, and because I haven't been unemployed for longer than 3 months, neither of them can help me!

After a couple of initial phone calls I realised it's far more cost effective for me to just get out there and make some money than expecting anything back from the government!

 

[JohnsonandJohnson]

I've just set up a business, straight off the back of my last job where I was an employee.

I've spoken to the council and the Princes Trust, and because I haven't been unemployed for longer than 3 months, neither of them can help me!

After a couple of initial phone calls I realised it's far more cost effective for me to just get out there and make some money than expecting anything back from the government!

Well Done Lee, what are you intending to do?

 

[lee13]

Thanks JohnsonandJohnson,

I've set up a window cleaning business! First 2 months down and already seeing the positives of working for myself, not to mention the money!

I'm taking things slowly though, being sure not to get too ahead of myself and making sure I have enough work and money aside to get me through the winter.

How is business for you?

 

[JohnsonandJohnson]

Thanks JohnsonandJohnson,

I've set up a window cleaning business! First 2 months down and already seeing the positives of working for myself, not to mention the money!

I'm taking things slowly though, being sure not to get too ahead of myself and making sure I have enough work and money aside to get me through the winter.

How is business for you?

Business is great thank you, I help new businesses secure investment, as well as consult on organisation and personnel performance.

I had a friend who started in window cleaning, he went on to deliver interior and exterior design - and due to his business acumen made over £million in his first 3 years...mind you the economy was a lot different in the early to mid 90's.

 

[lee13]

Wow, that's impressive.

Well, small steps to start with, but next year who knows! I've set aside some time to put together a plan on where I want my business to be in 3-5 years time.

The harder we work, the luckier we get

 

[oldeagleeye]

I think you all ought to go back and look at the OP's first few posts. He is going to struggle to eat on £50 quid a week and the he mentions £100 quid marketing grant.

Come on now that is not even enough for a basic busines stationary pack let alone marketing and promotion. I am all for encouraging young entrepreneurs but anyone that thinks £100 for marketing would help get te biz off the groundhas totaly unrealistic expectations and I can see that running thru the entire biz venture.

J & J. I am not having a pop at you but I really do think that you are giving false hopes to those planning this sort of start-up including the window cleaner. All investors whatever their label are looking for a viable business plan. A good managment team etc etc you know what I mean and that is in the best of times.

In today's world even establised companies find it diifficult to get finance yet you post implies that you can get funding to set-up as a window cleaner.

Sorry but I for one don't believe that you can. Perhaps you would care to give us a few examples of funding - any funding that you have secured.

Rob

 

[PERCY67]

There aren't any grants out there worth mentioning.

Yes you will get WTC, HMRC will have you down as earning minimum wage over 40 hours, so you need to be putting this into the directors loan account ie 12k a year.

Or base you hours on 16 for you and 15 for your wife, on minimum wage, this will keep you under NI, Tax and will maximise your WTC credits. But still keep putting it into the DL account to take out when the money starts coming in.

As for finance, if you have something to put up as equity i,e your house then you might get somewhere. However don't hold you breath.

I find credit cards are the best way to get money, it's unsecured and can be cheap, if you are careful how you play them.

 

[Magsite]

A while ago I put together the following site Business startup loans and when looking for information I found quite a view business link videos on youtibe which had quite lot of advice for both loans and grants, it may be worth looking towards them for advice.

 

[Esk247]

I think you all ought to go back and look at the OP's first few posts. He is going to struggle to eat on £50 quid a week and the he mentions £100 quid marketing grant.

Come on now that is not even enough for a basic busines stationary pack let alone marketing and promotion. I am all for encouraging young entrepreneurs but anyone that thinks £100 for marketing would help get te biz off the groundhas totaly unrealistic expectations and I can see that running thru the entire biz venture.

J & J. I am not having a pop at you but I really do think that you are giving false hopes to those planning this sort of start-up including the window cleaner. All investors whatever their label are looking for a viable business plan. A good managment team etc etc you know what I mean and that is in the best of times.

In today's world even establised companies find it diifficult to get finance yet you post implies that you can get funding to set-up as a window cleaner.

Sorry but I for one don't believe that you can. Perhaps you would care to give us a few examples of funding - any funding that you have secured.

Rob

I agree with you in the most part. But disagree (in a small part) about the amount required to start a business. I required just a £1,000 grant to start Esk247 and that bought me a PC, some software and some flyers. Year one I made £90 profit after all outgoings, year two I made £890 profit after all outgoings (marketing increases, increased costs) year three i made £1,485 profit after all out goings and this was only from business generated locally.

If i'd got my backside out there more and been more confident I could of made the business even more succesful, but i didn't, thats my problem, i didn't mingle and network enough. The fact remains that on a local level you still can make a slow and steady profit from a micro business, you won't be buying bmws, you'll be driving a rusty vauxhall vectra like i had to but eventually, with time and re-investment you can become a success. Just don't expect people to push money through your letterbox.

To go national you'll need a huge marketing budget, a clever website, a proper office setup etc. This costs money, this takes time, this may require investment of which there is very little available.

Another case study would be the guy that got some money from his dad to buy a large building in the middle of a residential area. He and his friends spent over a year doing all the refurbishment and conversion work themselves, they're now in a position to rent out workshops and apartments on the site and have repaid the money they owe while still putting away money for the future. They drive a transit with a wonky bumper but they're not in debt.

 

[Chris Ashdown]

To me the beauty of the window washer as a start up is that

Its easy to get started

Low start up-costs

Great Cashflow (cash in hand)

Low running costs

Able to expand but buying extendable poles and water systems to tackle larger buildings and offices

All year business

Possibility of nookie if the old film "adventures of a window cleaner" are to be believed

 

[space4work]

You can always try businesslink.gov.uk they have all the information you need for possible grants and funding for new businesses. They vary massively ranging from heating/rent allowance to large government grants.

Hope this is helpful