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 Revenue & 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.
For those looking for some extra support, the best place to start is your local Jobcentre 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 Jobcentre Resource
The Jobcentre 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. Jobcentre 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 gov.uk business support, or the Prince's Trust for those from ages 18-30.
Other Help
The New Enterprise Allowance scheme ended in 2021 and has been replaced by other business support programs available through gov.uk.
It is worth mentioning that in Wales there are additional schemes available through Business Wales which provide 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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