Home > Self Employed > Government Help Scheme for Becoming Self-employed

Government Help Scheme for Becoming Self-employed

Author: Maggie Lonsdale BA (hons) - Updated: 26 July 2011 |

It makes sense for the Government to encourage people to become self-employed, especially during the current economic downturn. Not only are people creating a job for themselves when employment is hard to come by, but they are contributing their taxes instead of taking money out in 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 a HM Registry & Customs (HMRC) 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.

Related on A Career Change...

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

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 Prince's Trust for those from ages 18-30.

Other Help

Another option is the New Enterprise Allowance which, from April 2011, gives Jobseeker's Allowance customers access to business mentoring and a financial package worth around £2,000.

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!

What About Freelance Work?

If you are considering using your skills to become a freelancer, follow our guide How To Get Into Freelancing to find out what are you best options.

Comments...

My Husband and I receive a pittance on Jobseekers' Allowance; the amount is totally unrealistic, and out of touch with normal everyday living and searching for work expenses. I dont't think JSA is designed for normal living expenses such as rent, gas, electric, council tax, tv licence, oysters, phone top-up, food and commodities. Our money goes in the first week because we pay all these; we also have meters for the utilities which makes it very expensive for heating, lighting, washing, cooking, etc. We do not smoke or drink, we do not have a social life, we don't do anything, except jobsearch. Prices in the shops are rocketing out of control, our JSA benefits keep going down; we are for the most time, completely penniless. We are so very desperate to go to work; we have even thought of prostitution, but I could not bear the thought of going so low down into the gutter, or 'doing the dole', we are very honest people, but our situation is driving us to the brink of suicide. We are usually normal, sensible, intelligent, educated happy people, this is what our situation has done to us. We just want to work. We are doing more than everything we can to survive day by day, and trying to keep it together. The Jobcentre we go to sign on is of no help whatsoever, except our Personal Advisor, she has been more than helpful. She made an appointment, twice this year; April 30th 2011, and September 5th 2011, for us to see a 'business advisor' at the JCP. At both interviews, the girl we saw told us that I am not eligible for help with going self employed because (first meeting) she said we are a Stage too late, at the second meeting she told me that I am not eligible for the NEW ENTERPRISE ALLOWANCE SCHEME BECAUSE she said that I HAVE BEEN OUT OF WORK FOR TOO LONG!!!!!!! If someone had come at me with a punch to my stomach, I could not have felt more gutted!! Surely, I, and people like myself, are prime candidates for the Enterprise Allowance Scheme!!! I am still extremely upset and so very very angry at the unjustness of it all! My Husband and I just need mentoring and financial in the way of Government Grant to help us get out of the pit that we are in. Just one chance is all we ask for. Is that too much to ask for?

Karyn - 19 September 2011 @ 1:40 PM

cameron could not run a bath let alone the country. this is just another gimmick tomassage the unemployment figures

sammy - 12 June 2011 @ 6:14 PM

Title:

(never shown)

Firstname:

(never shown)

Surname:

(never shown)

Email:

(never shown)

Nickname: