# Leaving job to start a new business - no salary for 10 months - can I get allowance?



## johnn (24 Oct 2014)

Hi all,

in a few months I'll be leaving my day job voluntarily to start a new Irish business with a partner in Dublin. We will be giving all of ourselves to the business, and will be re-investing all profit to ensure growth and scale to a profitable point.

We plan that for the next 10-12 months we will not be getting any salary.

I've been paying PRSI for the past 8 years (all months), as a PAYE employee, and I was wondering if I would be entitled for any allowance.

I have a mortgage of about 1k/month, and with all bills and expenses that would probably go a bit higher. I live with my wife (unemployed, she doesn't have any PRSI credit, and will be helping us in the business) and we have no kids.

I read about the Job Seeker Benefits / Allowance, but being already "employed" in our business, I don't think I do qualify.

Please do forgive me if this question is naive or if I've been too superficial on anything. I'd appreciate any help and feedback as I couldn't find much that would match my situation.

Thanks a lot!


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## fearbeag (24 Oct 2014)

I don't know if there is any kind of support, I suggest talking with the enterprise board or Social Welfare. 
Also if you were able to stay in your current position until April / May. You would be able to reclaim some of your taxes for next year.


I hope you find some supports out there and Good luck with your new venture


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## johnn (25 Oct 2014)

Thanks fearbeag - I'll talking to them. And thank you for the advice regarding the position.

My big hope is that I'll be able to get some help from the government, given also that we plan to hire people locally hopefully pretty soon (that's also the reason why we wouldn't get any salary).


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## Monbretia (25 Oct 2014)

I know of nothing you can qualify for to help you.

There is the Short Term Enterprise Allowance but you need to have a valid Job Seekers Benefit claim in place first, you would probably be disallowed from claiming JB for 8 weeks if you voluntarily left your job, hypothetically after 8 weeks you could claim JB then put in an application for STEA, however you could not start your business before this application was approved.

If this worked then you would be able to claim STEA (same rate as JB) for 9 months approx while your business got off the ground.

Realistically though you would not fit one of the main criteria to apply for JB in that you would not be actively seeking work after leaving your job, I have no doubt people do manage to get around these things (fib!) but it still leaves you in a position to do nothing for at least 3 months after leaving your job.


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## johnn (25 Oct 2014)

Thanks Monbretia. If that started for 3 months would still be something as 6 months with help on mortgage would help a lot. 

What about government allowance (as in a basic one)?


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## Monbretia (25 Oct 2014)

I don't know what you mean by Government allowance, there is only the Jobseekers Benefit ( for those with sufficient prsi contributions) and Jobseekers Allowance which is means tested and comes either after JB or if someone had insufficient contributions for the JB.   

The clue is in the name though, you are not going to be a Jobseeker so think this might be a difficult one plus you are leaving a job voluntarily.


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## moneybox (25 Oct 2014)

> I have a mortgage of about 1k/month, and with all bills and expenses that would probably go a bit higher. I live with my wife (unemployed, she doesn't have any PRSI credit, and will be helping us in the business) and we have no kids.


 
Here is the crux of the problem, you have responsibilites and a mortgage, unfortunately as you are not going to be available and searching for work, you will not be eligible for JSB and even if you were the amount you would receive would not be sufficent to pay your mortgage and all the other living expenses. 

Sometimes the enterprise boards give out grants for people who have a good business plan laid out and want to start up their own businesses, I don't know how the funding is with them at the moment but definitely look them up, they might be able to help you or offer you further advice.


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## newtothis (26 Oct 2014)

Monbretia said:


> Realistically though you would not fit one of the main criteria to apply for JB in that you would not be actively seeking work after leaving your job, I have no doubt people do manage to get around these things (fib!) but it still leaves you in a position to do nothing for at least 3 months after leaving your job.


 
There's no need to be anything less than completely honest.

My situation was slightly different in that I was made redundant. I started claiming Job Seeker's Benefit, but fairly quickly moved onto the Short-Term Enterprise Allowance. I had to prepare a pretty basic business plan (which I had anyway) and submit it to a local development company for approval. This took a couple of weeks.

My experience of the Dept of Social Protection has been very positive (with the exception of one individual). I've found them to be helpful: yes there's a degree of bureaucracy involved, but you'd kind of hope that they wouldn't hand out payments without some due diligence. 

My advise would be to talk to them and set out what you are trying to do. The Short-Term Enterprise allowance is there specifically to help those setting up in business. 

Best of luck!


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## Monbretia (26 Oct 2014)

If you are completely honest and tell them you are leaving a job voluntarily to start a business then their hands are tied, you are not jobseeking.

Being made redundant is a totally different situation.


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## PaddyBloggit (26 Oct 2014)

Start putting funds aside for your eventual change of direction.

It looks as if you'll have to self-fund your new business.


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## newtothis (26 Oct 2014)

Monbretia said:


> If you are completely honest and tell them you are leaving a job voluntarily to start a business then their hands are tied, you are not jobseeking.
> 
> Being made redundant is a totally different situation.


 
I think you'll find that the term "jobseeking" has widened to include the concept of providing your own job. My experience - which is direct, recent and relevant - is that you will get a positive response.

Yes, you may be disqualified from receiving JB for up to 9 weeks if leaving voluntarily, which is the main criteria for qualifying for the short-term enterprise allowance, but that's a worst case. 

As I said, my recommendation would be to speak directly to the Dept of Social Protection.

You may also want to consider the Revenue Seed Capital Scheme as well as the Short Term Enterprise Allowance.

I've availed of both of these: without them, it would have been significantly harder for me to start in business.


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## Drakon (27 Oct 2014)

There are a variety of social welfare SYOB-ish allowances. However, there are a lot of factors involved.
For example, the type of business is important. If it's construction or gardening, forget about it (country doesn't need the former, the latter is not year-round).
Best to discuss with the social welfare people.


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