how to make the transition from benefits to self-employed?

[redhappy]

I am a single parent, currently on benefits. I have a child with sn, so I want to work for myself to fit around his care. I have an idea for an online business, and I'm wondering how do I go from being on income support with no income to earning enough to support my family without claiming benefits. Obviously a business takes time to build up, how do I do the bit when I'm not yet earning enough to support myself, but I would be earning so obviously would affect income support.

I know you can earn around £20 per week before it is taken off your benefits, but what if I earn nothing one week and £100 the next? Has anyone been in this position and can advise? Thanks!

afraid i cant help, but marking my place as am looking at similar problem!

You switch to working tax credits which are worked out on your previous years earnings. So as you are on bens this financial year you will get get top rate tax credits. Your earnings for the next financial year will be taken in to account and your tax credits lowered accordingly. Speak to a Lone Parent advisor at Job Centre or call Tax Credits hotline. And Good Luck with your business!

Thanks LittleTyga that's so simple I feel silly for asking!

redhappy

you also have to get your head around thinking of your income on an annual basis rather than a weekly one
its a HUGE change
but utterly worth it

I know of somebody who was a 29 year old single mum of four in rented accommodation in a rather dire area who took that same plunge.
A few years on she's doing rather well
www.thesoapycauldron.co.uk/
(she's still hatstand though!)

hatstand??

Yes, I think what worries me is how you survive if you have a terrible year after a great year. Is it essential to keep some money from the good years or have access to further funds? Or can the tax credits work around that too?

Soapy Sam is mad as a whole stand of hatters :-) But she knows I think she's fab.

Fluctuating income - yup, that is the way of it.
You resubmit your income to tax credits every six months so it varies with you

but
you will be a huge success so need not worry :-)

Ah ok I get it!

Thanks for your confidence, it's contagious!