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Advice on benefits when going self employed

(5 Posts)
daisychainXX Mon 10-Aug-09 15:57:37

My partner is currently claim JSA (joint claim) and has been for months he has been unable to get back into work so we have been looking at him going self employed, starting own business.

However if he does that then for the frist 6-12 months any money he makes will have to go for tools so he not be able to take any wage even though he will be working more then 30 hours a week so he cant claim JSA.

currently the house hold income is around £170 plus housing benefits (including what we get for our 2 year old son)

When I look it up online if he is working we loss £100 JSA but gain £80 working tax credits. (per week)

This will leave us £20 less then what the goverment say is the min you can afford to live on.

Does any one know what benefit would make up last £20 that would bring us up to min standard that the gov say you can live on in the uk.

(I dont think we can claim income support because every thing I have read says that income support is only for those working under 16 hours a week and on low income)

Any ideas?
Thanks
daisy chainXX

atworknotworking Mon 10-Aug-09 19:11:52

Do you not have start up grants in your area that will help with the purchase of equipment, have a look on the Business Link web site or be-enterprising.biz they have branches in different areas, I thought their was a grant/funding for the long term un-emp already that your DH could access, have you spoken to the job centre about your idea?

A lot of Mnetters reccomend the entitledtoo website havn't used it but apparently it's very good and lists all that you are entitled to depending on your circs.

springlamb Mon 10-Aug-09 19:24:06

Are you sure you won't also get an increase in Child Tax Credit?
Whilst the tax credits system won't recognise a loss, it will recognise earnings of nil, which may increase your CTC.
Are you sure about the hours he will be working, especially during the initial setting up/developing of the business. I believe the tax credits are weighted if you work more than 50 hours per week. IME most self employed people work far in excess of this (my dh works 10 hours a day and 5 on a Saturday, will also work 5 on a Sunday if he's snowed under).

springlamb Mon 10-Aug-09 19:27:25

Oh and I forgot, he also does 2 late nights a week during termtime until 8pm when the dc and I are out on activities.
Actually, on reflection, are you and your dh quite sure you want to go the self-employed route?
I have never known any different, dh has been self employed since he was 25, but I often think how nice it would be if he got paid annual leave, and paid sick time.
Only joking!!

daisychainXX Mon 10-Aug-09 23:36:26

Thank you very much for the advice I have been on the entitledto web site and it says that we will only get £86 Working tax credits which is what would make up to £20 short of what we can live on. However after reading your messages I think I will go into the jobcenter and see if they can do the full sums on there computer maybe I am missing some thing on the form.

I will talk to business link ask about help and grants, though every body the jobcenter has asked us to see so far can only offer loans hopefully business link will be more helpfull

Thank you for all your advice

Daisy chain

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