ex PAYE worker, starting new business - allowances?

I've been a PAYE worker for over 10 years now. My current employment contract ended at christmas, and I'm now in the process of trying to start my own business, I'm also applying around for any work in my area - to no avail I'm afraid.

I know I'm entitled to job seekers allowance, but with the fact that I want to try and start my own business - what benefits would I be entitled to. I'm an engineer and the prospective outlook for 2011 is very bleak - and i plan to try to work a 3 day week.

Beleive me, claiming JSB is the last thing I want to do, but i have to be realistic. Am i shooting mysef in the foot by setting up as a sole trader??

Hi Paleface,

go for it.

check this out, hope it helps.

Be very careful becoming a sole trader, I would suggest forming a limited liability company (Ltd) much safer.
http://www.welfare.ie/EN/Publications/SW92/Pages/1WhatistheBacktoWorkEnterpriseAllowance.aspx

It's difficult to tell from your post but have you already applied for Job Seeker's Benefit? (not JSA as that's when you haven't enough contributions credited and you state you've been a PAYE worker for 10 years).

If not, apply today, you're entitled to it and you may also be entitled to other items such as a medical card which could be very important.

thanks for the quick replies - dereko; just to clarify - yes I gather its job seekers benefit I would be entitled to and no I haven't yet applied for it.

I've seen the details on the back to work scheme, but it appears that this is geared towards people who are already on job seekers benefits for over 12 months.

My main concern, it that i go ahead register as a sole trader and with revenue etc., business doesn't earn anything and i then lose out on the past PRSI contributions which I have made as a PAYE worker; thus resulting in being unable to claim for future benefits??

I think I need to talk to someone in social welfare.

What you need to check out is the 'short-term enterprise allowance' - no qualifying period

check the link re job supports at top of thread. may be something there you haven't seen. I'd go to SW and ask to see the 'facilitator' there. they're very good at giving you pointers about getting of JSb, etc., grants out there depending on where you live, etc.., enterprise boards help. worth a chat.