Government Help Scheme for Becoming Self-employed

It makes sense for the Government to encourage people to become self employed, especially during the current economic downturn; not only are they creating a job for themselves when employment is hard to come by, but they are contributing their taxes instead of taking money out in the shape of benefits.

There is a lot of Government support available for people wishing to become self employed, although, like so many things, you have to go out there and get it for yourself as it won’t come knocking at your door.

Make it Official

The first thing to note is that it is your responsibility to register as self employed within three months of starting your business, or you may be faced with a fine of £100. It is very easy – there is an Inland Revenue phone number to call and you just quote your National Insurance number. They’ll also send you a very handy information pack which is really worth reading.

For those looking for some extra support, the best place to start is your local Job Centre Plus office. It’s not just for people signing on and looking for work, they are great at signposting you to the place that can help.

The latest Government addition to its New Deal initiative is specifically for the over 50s, an age range which has not only been hit hard by the recession but is also, statistically speaking, likely to find it far harder to get new employment. This New Deal Plus helps people who are out of work and over fifty set themselves up as self employed, with some financial assistance and plenty of advice.

The Job Centre Resource

The Job Centre is also the place for up to date advice on what financial help you can get with becoming self employed if you have been out of work for some time and claiming benefits. Job centre advisors will now conduct 16 week and 26 week reviews for unemployed people, with options discussed now including potential ideas for self employment and starting a franchise. If this is appealing, you can then be pointed in the right direction for business advice, such as that available from Business Link, or the Princes Trust for those from ages 18 – 30.

Another recent addition is the new Government Self Employment Credit, which is aimed to help the newly self employed after a period of claiming Job Seekers Allowance. This credit is around £50 per week, as long as the self employment is for at least 16 hours per week, and helps you get through the difficult first months as a self employed person.

It is worth mentioning that in Wales there in an additional scheme called Flexible Support for Business which gives help, advice and possible grants to the newly self employed.

For many of the schemes, grants and services provided by the Government, participants are given a great deal of support. Once you have accepted the help, you will find that there is a large amount of fabulous resources available that you are entitled to make the most of, after all, when your business is successful you’ll be paying taxes for a long time to come!

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