Setting up a business

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hils

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Can anybody tell me if you set up a business while signing on is there any assistance for you or if it doesn't work out and you are making no money at all is it possible to start signing on again or how long does it take until you are entitled to get some financial help. It's a big risk trying to start a business at the minute so would it be worth it?/
 
Hi Hils,
I was on JB (which turned into JA) but had worked for almost 6 years before this "break". Then I set up a business while I was still claiming (just filled out a form registering for income tax and status changed to self employed). Now I have taken on some regular work as paye to pay the bills as my business is not booming yet. when this job finished (shortly), I expect that I can go back on welfare as I have paid more contributions. I say set up the business - even though it will take a few more years I'm doing something I love and I've never looked back. :)
 
If you apply to your local 'Area Partnership' they will advise you and can help you start up and advise you of you entitlements. http://www.startingabusinessinireland.com/dirapc.htm They work with the department of social and family affairs and run the 'The Back To Work Enterprise Allowance' scheme allows people who are in receipt of Social Welfare payments become self-employed while continuing to receive their Social Welfare payments...
Upto the first year or so.
 
I tried for this but you need to be on the dole for 2 years before you can do this sort of scheme. I went for an interview with them to chat about my options first.
 
If you are self employed and your business closes down you do not get anything from Social Welfare.

This has happened to my husband. He has not received a cent from SW as he was self employed even though the difference between PAYE contributions is 3% they will not give you anything.

This is a real dis incentive to set up business in this country.

My brother in law told me of a guy he knows who paid the extra contributions but was still refused. He appealed this but I don't know the outcome.

You really need to know what you are getting into as the information and advice coming from SW since we have been dealing with them from July 2008 is conflicting.

My husband has asked them a number of times to send out the paperwork so that he can be in the system shown to be signing on as he has been unemployed but he has yet to receive anything.
 
march said:
If you are self employed and your business closes down you do not get anything from Social Welfare. This has happened to my husband. He has not received a cent from SW as he was self employed even though the difference between PAYE contributions is 3% they will not give you anything.
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This is not true. Any person who is looking for work and unemployed can apply for Jobseeker's allowance if they do not have the necessary PRSI contributions paid at the covering rate for Jobseeker's Benefit (JB). After that, there is a means test.

march said:
My brother in law told me of a guy he knows who paid the extra contributions but was still refused. He appealed this but I don't know the outcome.
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It is impossible to 'pay the extra contributions' as a self-employed p[erson in order to qualify yourself for JB.

march said:
My husband has asked them a number of times to send out the paperwork so that he can be in the system shown to be signing on as he has been unemployed but he has yet to receive anything.
Click to expand...
If he doesn't qualify for JA or 'credited' contributions , then he can't sign on.
 
hils said:
Can anybody tell me if you set up a business while signing on is there any assistance for you or if it doesn't work out and you are making no money at all is it possible to start signing on again or how long does it take until you are entitled to get some financial help. It's a big risk trying to start a business at the minute so would it be worth it?/
Click to expand...


This from the SW website:

"Income from self-employment and the means test
The earnings from your business will be assessed in the means test for Jobseeker’s Allowance. The assessment must reflect the income you may reasonably be expected to get from your business over the next 12 months. Income for the last 12 months will be taken as a guide but allowing for any factors which it is known will vary. You should be prepared to discuss these factors when you are assessed for Jobseeker’s Allowance.
Earnings are assessed as gross income less work related expenses over 12 months. Your expected annual earnings from self-employment is divided by 52 to find your weekly means from self-employment.
Any ‘drawings’ you take from the business is not an allowable expense. If your ‘drawings’ from the business are greater than the level of income calculated, the ‘drawings’ are assessed as cash income.

There is no exhaustive list of all expenses allowed because expenses vary with the nature and extent of the self-employment. However the following are the main allowable expenses in most cases:
  • Materials (supplies costs)
  • Motor running costs (portion applicable to business)
  • Depreciation of machinery or equipment
  • Insurance relating to the business
  • Telephone (portion applicable to business)
  • Lighting and heating (for business and not domestic use)
  • Advertising
  • Bank charges
  • Stationery
  • Van leasing
  • Labour costs
  • Pension plan
  • Any other costs associated with running the business
  • Household running costs are not allowed as deductions against business profit
  • Class S PRSI contributions (where paid or payable) (Note if payable but not being paid, a separate report should be made by the Social Welfare Investigator on this aspect.)
To prove the level of income from your business you must give your receipts and payments (documentation showing money coming in and out of your business) or audited accounts to the person dealing with your application in your Social Welfare Local Office."
 
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