Jobseekers Allowance whilst Starting own Business

[5aq1b]

Not sure which section to post in so i apologise...

I've been out of employment for the best part of 4 months now. Can't even manage to get interviews due to the market being really poor so i've become a little disheartened - which is my main motivation for starting my own business, in partnership with a friend. We're at the stage where we have started trading and have setup a Ltd company each with 50% shareholding. I've signed on twice now at the job centre and the weekly amount I get from them is probably more than what I'm gonna get for the first few months or so from my own business. To be honest - I don't want to take a wage from my own business for the first 12 months.

What are the legalities around this? How long can i claim jobseekers for whilst I continue to try and establish my own business?

 

[Christine Hough]

When I was looking into this with a friend a year ago. Once you have been on job seekers 6 months a lot of gates open for you.

One is to have an allowance for a few months while you build up a business.

But things change and you should really ask at the job centre.

 

[bagelbox]

Not sure which section to post in so i apologise...

I've been out of employment for the best part of 4 months now. Can't even manage to get interviews due to the market being really poor so i've become a little disheartened - which is my main motivation for starting my own business, in partnership with a friend. We're at the stage where we have started trading and have setup a Ltd company each with 50% shareholding. I've signed on twice now at the job centre and the weekly amount I get from them is probably more than what I'm gonna get for the first few months or so from my own business. To be honest - I don't want to take a wage from my own business for the first 12 months.

What are the legalities around this? How long can i claim jobseekers for whilst I continue to try and establish my own business?

Hi There,
I was in exactly the same position as you a couple of months ago. I was turned down as I refused to take job interviews. They couldn't understand the fact I was planning a business and was literally waiting for my lease arrangements to fall into place before I could launch.

I wrote to my local MP as I was outraged that there was no support for people who wanted to create jobs for others! He replied stating "you should be entitled, get back in touch with them". Which I did and was again turned away and informed that 'you're only able to claim additional benefits for starting a business after you've been on job seekers for at least 3 or so months'. I found this ludicrous and again wrote to the MP. He said he's speaking to the DWP and will come back to me.

I'll keep you posted!

 

[crossdaz]

What are the legalities around this? How long can i claim jobseekers for whilst I continue to try and establish my own business?

I think the technicality is that you have to be 'available for work' to be entitled?
As someone else said there may be ways around this but you have to be careful what you say - it only takes some jobsworth to turn your good intention into something less desirable.

I know that you can claim other kinds of benefit such as rent and council tax allowances but jobseekers is a funny one.

 

[Kernowman]

You have to be "available for work" 24/7 when claiming JSA. Ignore that advice at your peril.

Your other option is to sign off JSA and claim Working Tax Credits, but be aware they base their calculations on what you earned LAST YEAR, not what you are earning or expect to be earning. Fill in the WCT form in as instructed, then when they have the form ring them with some history of your actual earnings at that time.

 

[BizGurl]

You can start a business after being on JSA for 13 weeks - The 13 Week Deal I think it's called. You'll still get you weekly/fortnightly allowance but any money made from the business is held/managed until the 6 month 'test trading' period is over, and then any profit after deductions etc is given to you to carry on while you get signed off! So you wont be able to claim AND have any extra cash from the business. But at least for the 6 months you don't have to worry about rent/council tax.

I was in the same boat myself a not too long ago, but just as I was about to start I got offered a job! I wish I stuck with the business/JSA way so I could focus solely on that but now I'm doing it in addition to work! When I was in that boat, I was told I that even though I was planning the business, I still had to be actively seeking work. Thats easy. Still apply for jobs but don't put your heart and soul into it if you intend to work for yourself anyway. I guess you could just fire of CVs to random companies and list them to show you are looking for work and satisfy the conditions of JSA.

 

[crossdaz]

You'll still get you weekly/fightnightly allowance

You had to be from Yorkshire with that one

 

[BizGurl]

You had to be from Yorkshire with that one

Typical me Lol

 

[papverpoppies]

I think the technicality is that you have to be 'available for work' to be entitled?
As someone else said there may be ways around this but you have to be careful what you say - it only takes some jobsworth to turn your good intention into something less desirable.

I know that you can claim other kinds of benefit such as rent and council tax allowances but jobseekers is a funny one.

I had the same problem several years ago.

In fact they stopped my money, as I was doing an online degree in kennel and cattery management, which did not effect me looking for work (the more honest and the more you try to better yourself, the more the system holds you back)!

Do, you not go over to working tax credits, if you are starting your own job and coming of JSA!

Have a word with CAB they will be able to help and tell you.

There was some really nice people at the place I signed on, and they all said sorry to me, because the system stinks at times.

It was the worst 6 months of my life, and I never ever want to have to visit one of those places again - they have lost the ability to be able to tell the genuine from the layabouts.

Good Luck

Poppy xx

 

[BizGurl]

(the more honest and the more you try to better yourself, the more the system holds you back)!

Spot on. In some instances (in genuine cases of people trying to better themselves) I can see why 'cheating' would be an attractive option.

 

[papverpoppies]

Spot on. In some instances (in genuine cases of people trying to better themselves) I can see why 'cheating' would be an attractive option.

Yes, I began to ask myself, why bother, keep signing on, and play the game.

I used to come out of that place, almost in tears.
Although some of the staff were nice, you get no better treated for trying to better yourself, than the lads who puked up all over my shoes one day, as I was entering the building.

I have a friend who is a business advisor, and he told me how they target the 'soft options' so as to meet their targets.
He went onto tell me about people who they had sent on courses to learn basis reading and writing (if they refused) their money was stopped, men and women who had held down responsible jobs, being degraded in this way.

Sadly, if you don't play to their rules, they stop the dosh.

Poppy xx

 

[davek17]

Hi There

I have been in this situation a couple of times in the past and anything to do with benefits is an absolute nightmare. None knows what they are doing, you're lucky or unlucky with who you get to deal with and how sympathetic and understanding they are to you trying to better yourself so its a juggling act in my view of being legal but also honest and open.

There are 3 benefits you can have:
JSA is for people able and "Looking for work" and who work under 16 hours per week.

Income support is for people who can't work.

Tax credits are for people who are working over 16 or 30 hours per week but on a low income.

Now let me make one thing clear, being on JSA does not stop you from starting a business. It has nothing to do with that and many people run little things in their spare time and then lose their jobs. Its all to do with your earnings and income.

What I would say is stick to JSA, keep looking for work but work hard at your own thing too. The moment you start making money, be honest and get yourself on Tax credits. You don't have to go in every 2 weeks and defend yourself like you're a criminal and you'd be suprised how much people can make on this whilst still pulling a low salary. Use the system for what its designed for.

Don't forget that JSA handles all your council tax and housing benefit too so just remember you need to do that yourself if you plan to come off JSA and use tax credits.

Hope to have helped.

 

[Esk247]

Just ask your jobcentre to be honest, they'll know about your area and what help is available.

If you're going in to self employment it actually helps them get you off the books, you're no long on the unemployed list so they should be able to offer you 16 weeks of full job seekers while you start your business.

I hope you told them BEFORE you started trading though as they could ask for money back or freeze payments until they work out what you're actually trying to achieve.

 

[BizGurl]

I hope you told them BEFORE you started trading though as they could ask for money back or freeze payments until they work out what you're actually trying to achieve.

This. Also, they count you as trading from the moment you start offering your product/serivce, not when you make an actual sale.