Financial support
If you are on benefits, under normal circumstances some of your benefits could reduce or even cease when you start trading.
Our self employment service can support you to access schemes which could enable you to get financial support whilst trading to ease the impact of coming off benefits.
There is a range of financial support available to people wishing to start up in business, each with its own set of rules, conditions and availability, which can change on a frequent basis.
Permitted Work Scheme
If you are eligible for the Permitted Work Scheme, you may be able to undertake a limited amount of work whilst claiming some benefits. There are rules about what work you can do and how many hours you can work.
Working tax credits
After starting your business you may be eligible for working tax credits to support your income during trading. The amount of working tax credit you will receive depends upon a number of factors, such as household income, age, severity of disability and number of dependants.
New Enterprise Allowance (NEA)
NEA is a new scheme which is being piloted in Merseyside and will be available nationally later this year. It is available to those who have been claiming Jobseeker’s Allowance (JSA) for more than six months and who wish to start their own business.
To be accepted on to the NEA, an individual must create a business plan which is deemed to be viable by a supplied business mentor. Once accepted on to the NEA, an individual will have access to:
1. Weekly allowance
The weekly allowance is for up to six months (for the first three months, this is equivalent to the individual’s JSA payment; for the following three months, it will be half of that payment).
2. A business start up loan
The loan of up to £1,000 to help with initial start-up costs of the business.
3. A business mentor
Support with accessing a business mentor from the private sector, to provide guidance during the initial period of the new business.
Where to get help
If you need advice about self employment then please contact your local Action team and they will put you in touch with someone who can help.
Contact your local Action team
Frequently asked questions
A range of our most frequently asked questions and how Action's self employment service can help.
