JSA while setting up business

Hello peeps,

Sorry if this is in the wrong place and already asked.

I was wondering if i was entitled to job seekers while i attempt to set up my own business.

I've checked direct gov website but find it a bit complicated to navigate and find out relevant information.

I officially stop been a student on the 31st of July.

Thank you

Reply 1

ajrimmer169

I am on JSA atm and have spoke to my "coach" about starting my own business and he said he will help and look around for anything that could be of use, so I am guessing it is okay as long as you can still prove you are looking for jobs as well :smile:

Reply 2

cristofayre

Original post by nevergiveupsoap

Hello peeps,

Sorry if this is in the wrong place and already asked.

I was wondering if i was entitled to job seekers while i attempt to set up my own business.

I've checked direct gov website but find it a bit complicated to navigate and find out relevant information.

I officially stop been a student on the 31st of July.

Thank you

You can't actually get JSA whilst developing a business as -technically- you wouldn't be "available for work" if doing your own thing.

However ... there IS an alternative allowance which is called "New Enterprise Allowance" It pays you £66 a week for the first 13 weeks, and then £33 a week for the next 13 weeks. This is guaranteed, and cannot be stopped however much you earn from your business.

You do have to attend a Self Employment course, (which I myself am about to go on!) Should be "interesting" as they 'teach' you everthing there is to know about running a business in 4x6hr training days!!

My own problem is now I've got the francise - and getting the funding / training - is finding the workers within Chelmsford. Despite cards in newsagents / free ads on some online sites, the response has been nil. (And no way can I afford the agency ads, and newspaper ad prices of £150+ per listing!!) Anyonegot any ideas?

Reply 3

Schezerade

7

Original post by cristofayre

You can't actually get JSA whilst developing a business as -technically- you wouldn't be "available for work" if doing your own thing.

However ... there IS an alternative allowance which is called "New Enterprise Allowance" It pays you £66 a week for the first 13 weeks, and then £33 a week for the next 13 weeks. This is guaranteed, and cannot be stopped however much you earn from your business.

You do have to attend a Self Employment course, (which I myself am about to go on!) Should be "interesting" as they 'teach' you everthing there is to know about running a business in 4x6hr training days!!

My own problem is now I've got the francise - and getting the funding / training - is finding the workers within Chelmsford. Despite cards in newsagents / free ads on some online sites, the response has been nil. (And no way can I afford the agency ads, and newspaper ad prices of £150+ per listing!!) Anyonegot any ideas?

Thanks, how do you apply for this? Got a friend who might be interested in it :smile:

Reply 4

cristofayre

Original post by Schezerade

Thanks, how do you apply for this? Got a friend who might be interested in it :smile:

Go to any Job Center, and they should be able to provide them with details. (If you get a blank response, try a different centre. Or tell me, and I'll have a work with MY advisor in Witham, and ask them to "have a word" with the other JobCenter!!)

Reply 5

Minify

Original post by nevergiveupsoap

Hello peeps,

Sorry if this is in the wrong place and already asked.

I was wondering if i was entitled to job seekers while i attempt to set up my own business.

I've checked direct gov website but find it a bit complicated to navigate and find out relevant information.

I officially stop been a student on the 31st of July.

Thank you

Just sign up for JSA and don't say anything about starting a business, they only care once you have actually set it up and are making money. I started my business and my advisors told me that I don't need to declare it until I actually make money.

Reply 6

cristofayre

I would say that advisor was being a bit coy. It depends on how much time you're giving to the 'set up' process. If you're spending 40 hrs a week -or more- setting things up, you'd actually be breaking your JSA terms insofar as you have to be "available for work", and "actively seeking work", (and giving documented evidence to that effect)

That said, you CAN do both (and I did) if say you spend 5 hrs a day researching, getting things ready etc, for 2-3 days here and there "doing your own thing", then using Universal Job Match (and saving your searches) to keep "Them" happy on the other days, (and maybe a little "creativity" in where you say you actually searched for jobs!) But it's a hassle, and could lose your benefit if they can disprove your evidence.

That's why I opted for the "New Enterprise Allowance". It allows you to spend unlimited hours doing your own thing - and get a £66 a week allowance - without having to go through the performance of completing your job search week in week out, and potentially having benefit stopped if they can show you're not available for work.

Reply 7

NotJustAName

12

I think to qualify for the New Enterprise Allowance you have to be recipient of certain benefits. I think it's unfair for those who might not be working but are not claiming income support. New Enterprise Allowance should be for everyone who wants to start their own business.

Reply 8

cristofayre

You're right, you do have to be on Job Seeker's Allowance, (unemployed) before you can claim the NEA. I don't know if it covers people on Income Support.

Not sure what you class as "everyone who wants to start their own business" - maybe those in employment? I suppose the Goverment logic is that those in employment already have funds they can set aside whereas trying to start a business when you get £56 a week JSA (before paying for food / leccy etc) is more of a struggle

Reply 9

NotJustAName

12

Not everyone, who doesn't work, claims some sort of benefit if they don't work. NEA should be allowed for these people.

Reply 10

cristofayre

Original post by NotJustAName

Not everyone, who doesn't work, claims some sort of benefit if they don't work. NEA should be allowed for these people.

Ahh, I take your point. Could you not "fiddle" the system? (I didn't say that :wink:

) I mean go onto JSA for 4-5wks, and then say you'd like to go on NEA. If it's due to being over the threshold to get benefit, you could "lose" some money!!

** My aunt has dementia, and so we had to have joint bank account. But as that ran to several K, I 'invested' it in two films and a Court case to get it down. Unfortunately, the films sank without trace, and the plaintiff in the Court case is being a cow, so I did literally loose 9K ... plus 2K on some franchise crooks who vanished into the ether!! That's Not the way to do it!!

I can just here my horrible advisor saying "Well if they don't need to claim benefit and don't have a job, how are they supporting themselves ?"

JSA while setting up business

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