Government Help Scheme for Becoming Self-employed

Originally written by Emma-Jane Batey, updated by the editorial team on 4th April 2026

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.

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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.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

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The New Enterprise Allowance scheme ended in 2021 and has been replaced by other business support programs available through gov.uk.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!

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.

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Now that you have read through the advice above, you might want to put it into practice. Our Career Change Matcher lets you tell us what is not working and what you want instead and we will match you with career paths that fit. Try it now →

48 questions

Ask A Career Change a Question

ACareerChange Editor 24/07/2018 at 11:51 am

If your income is below a certain level you may be entitled to benefits help such as universal credit. If you can’t claim Universal Credit, you might be able to claim existing benefits, including:

Housing Benefit
Child Tax Credit
Working Tax Credit.

bluetaxi 23/07/2018 at 4:53 pm

I became a self employed taxi driver 6 months ago, i have been told on countless occasions i do not get any help from the government or any other organization, meaning i might have to give up driving taxis, is this true? And if so, why? Why is it a self employed taxi driver has no entitlement to any sort of grants or subsidies?

Ghagana Linga 21/05/2018 at 9:18 am

Hello I am a MCA degree holder. I am thinking to start a computer training center in my village. I need suggestion n materials.
Thankyou.

Lisa 20/03/2018 at 5:03 pm

Hi
I have recently became self employed and have been struggling with finances as I am a single parent is there any help I can get until my business picks up

ACareerChange Editor 12/12/2017 at 3:17 pm

Citizens Advice may be able to help or you can try the HMRC helplines or You Tube videos. If you're still stuck and you’re on a low income (up to about £380 a week), you may be able to get free professional advice including help with filling in forms - contact Tax Aid

Jeskatp 11/12/2017 at 11:10 am

Hi I a currently self employed I was with people plus under there work program but I was never shown how to do self assements and I’m struggling with that and the financial side of things I’m supposed to have there help until the 28th December but I never get a call back

Jane87 08/03/2017 at 5:58 pm

Hi I am looking for help with grants to expand on my massage work. recently registered as self employed but looking for financial support for further courses and equipment have been employed part time upto now but wish to continue working solely on freelance work

ACareerChange Editor 04/10/2016 at 12:29 pm

Your local job centre plus should be able to give you all the information you need in terms of what you can claim - you may be eligible for the Enterprise Allowance

ella 03/10/2016 at 5:28 pm

I have currently just lost my job, I want to go self employed working in my community helping elderly with day to day tasks, can I get help with rent and council tax,can I get any other help I found nobody will help me and I am skint I don't know what to do

sjc 01/09/2016 at 3:39 pm

Hi there,
i'm currently in receipt of ESA and PIP. I want to get back to work and it would appear that my best option is as a freelancer. In order to do this the companies I'm looking at want my self employment ref. number. I've been to the job centre and unfortunately they messed me around sending me on a small business course which I completed only to be told I didn't qualify because of my benefit status. I am desperate to move past my illness but am struggling and confused. Can you help please?

ACareerChange Editor 15/08/2016 at 1:00 pm

It may affect your chances of certain types of loan but there are some goverment backed schemes that you may qualify for. Ask at job centre plus about schemes such as the the New Entreprise Allowance

Whiter 12/08/2016 at 6:03 pm

Hi I've worked in building trade for 17 years as a joiner but recently became unemployed so I'm going to start up on my own! I'm looking what kind of grants or loans are available I have a bad credit rating this might be a problem?

mith 27/05/2016 at 10:57 am

hello i want to start a new power loom manufacturing unit in
bangalore so please help me

manouj 08/04/2016 at 6:25 pm

I want to start a xerox stationary shop so I need a financial help I was patient of mdrtb so I request to help me

ACareerChange Editor 16/03/2016 at 11:50 am

Firstly speak to your local Job Centre Plus Work Coach. You may be entitled to the New Enterprise Allowance, which also gives you access to a business mentor etc.

vanman 15/03/2016 at 5:17 pm

Hi I have been out of work for 12months I have a big van and want to use it has a man with van.ie small removals.any thing that needs removing.there is loads of man with van in most towns but many of them only to it part time I am sure there is an opening for it full time.would there be any help going self employed

Sodie 10/03/2016 at 12:27 pm

I am presently unemployed in NI. I have been informed that there is a possibility of work driving coaches for tour operators. Is there any financial assistance available to obtain the required PSV/PCV licence, which will cost about £1,150?

Shaun 25/02/2016 at 10:35 pm

After being out of work for a number of years due to being a family members carer, I am trying to find funding for plant machinery so that I can get back to work. Not only does it get me back in work,and not claiming, but it would give me the opportunity to be self employed and in the position to give work to someone else. Win win ! I have only found funding for companies to give their employees, not for people to get IN to work !! PLEASE HELP !!

Roy1969 16/02/2016 at 12:39 pm

I have been working in property maintenance for about 10 yrs and after being let down have decided to go on my own I wouldn't be able to claim benefits because I left my job but is there any help out there for me

ACareerChange Editor 03/02/2016 at 2:46 pm

Great idea and good luck. Bournemouth Council has some good resources for you here

Igor 03/02/2016 at 12:48 am

Hi. I'm a very skilled cleaner and I work in a company cleaning schools. Me and my brother work together and we have an idea to open a company or to become self employed. We now how to work with all cleaning machinery and products. Our idea is to do "private" cleaning, doing house by House cleaning everything (carpets, windows, walls, all kind of hard floors, remove limescale from everywhere, etc) and we would like to know how to start the first step, how we can be helped with some monetary help, where to go as we live in Bournemouth. Waiting hopefully for some response and advice to know if it worth. Thanks

Jamie 22/01/2016 at 10:46 am

Hi there I'm currently a self employed subcontractor working for a company threw a friend . Been wanting to be come my own boss for a long time but the wages and family commitment only just see us by , I'm a fully qualified external wall insulate installer / renderer and would like to see if there was any help out there to help me get tools/ transport to start myself off , my credits out the window , thanks

Foxy 19/10/2015 at 12:46 pm

Hi i am on long term sick with mental health issues and looking for some advice on plumbing courses and could i get any funding or help regarding the cost of the course,i'm claiming ESA and would like to be self employed in the near future

ACareerChange Editor 08/10/2015 at 11:11 am

Sounds like a promising idea. The National Enterprise Allowance might be relevant. There's more information on this government page or try our article on Funding for unemployed entrepreneurs

Kevin 07/10/2015 at 11:21 pm

Hi my name is Kevin , I'm currently receiving esa as I'm in remission from cancer I would appreciate any information about help such as start up grants as I want to come off benefits and be my own boss , I have researched my idea and have a lot of backing from the public because of my idea , which is taking orders from people and delivering it to them when they wish to have it delivered especially the elderly . My idea is becoming a greengrocer who delivers on a daily basis to anyone that needs fresh fruit and vegetables , I will also be mobile for people who haven't ordered their goods as I would be a street vendor at the same time . Where I live there is a great deal of high rise towers of which house mostly elderly folk , I have spoken to a majority or them and every one of them think it's the best thing since sliced bread , they are also very appreciative for what I would be doing for them as most of them don't get across the doors especially winter time so they wouldn't even have to come out of the house if they didn't wish to do so , even if they were able to do so they haven't got the burden of carrying their goods back home as I would be doing it for them . Any financial help would be a godsend not only to me but to the many folk who would also benefit from my idea . Thank you for reading my comment

dan 14/01/2015 at 5:38 pm

hi there, I recently got made redundant, and have just went self employed. Is there any help I can get with my rent or council tax?? any advice would be good..

thanks

sue 10/11/2014 at 12:01 pm

how do I go about getting help setting up my own business any info would be muchly appreciated

ACareerChange Editor 24/10/2014 at 2:04 pm

@bobby. Ask you local council for links to new business support organisations in your area.

bobby 22/10/2014 at 11:51 pm

im looking to become a self employed courier is there any grants i can apply for to help me get started.

Aggy 28/09/2014 at 8:00 am

Hi, me and my partner just bought a van. We are starting to work as couriers for the same comepany, on one van and one account. We have to register as self employed, but i think we have to set up a company if we work on one account? I have no idea where to look for any help or information about that matter. I will appreciate pointing in a right direction. Thanks. Agnes.

ACareerChange Editor 26/08/2014 at 11:50 am

@Reema. The best place to start is to ask at your local council - they will be able to point you in the direction of organisations that are fulfilling the role formerly undertaken by Business Link.

reema 26/08/2014 at 9:45 am

Hello i have complete my graduation with in lab tachnician degree and also get training in beautician course. Now i decided to open my own parlour or spa ,so I need the some help from govt.with least rate of interest. Would you please tell me about the govt. scheme to open my saloon

si 06/01/2014 at 4:37 pm

iv been working as a courier iv just been made unemployed and im looking to become a self employed courier is there any grants i can apply for to help me get started ?

The_Mole 25/02/2013 at 10:18 am

There are so many ways unemployment figures are massaged. You only have to be seen to be doing the right things. Q1. Why are the fines to 'everything - such as parking/self-assessment/littering etc' more than than the £71 the government says we are able to live on? Q2. Why is JSA reduced for having savings above £5,500? Q3. Have you got a second home? Q4. Why is the government so keen to have its citizen's tattle-tell on those trying to keep afloat while reporting the rare benefit cases in the worst possible light? Great on the children! While not worrying about those companies/celebrities so much that do tax evasion abroad (and which is considerably bigger)? Q5. Why does our government punish it's citizens for not having succeeded in generating decent, professional jobs which provide a sensible income and status and instead blame you for not having one. Brushing this under the 'Rug of Avoidance' and meanwhile promoting the Internet as a good thing? If people do not have money coming in, it cannot go back out again. When it does...it's in Jersey!

russt1 03/09/2012 at 6:02 pm

Hi iv just completed my Level 2 in Gas and now need funding to go gassafe and buy some tools anout £1800 is there anywhere i can go. I dont sign on but we get tax credits

macsfit 24/08/2012 at 5:31 pm

i have passe my level 2 gym,level3 training in different environments, and been classed as self employed for nearly a year.
i am wondering, as i am self employed and living basicaly on working tax while supporting my 4 kids and partner, would i get help with full or part payment to complete my level3 fitness trainer award, and help with growing my small business??

The LifeCoach 26/06/2012 at 8:46 am

Some information on the New Enterprise Allowance scheme;

To qualify you must have been out of work for 6 months or more and you must have a serious business idea.

Ask your JCP advisor to refer you to the NEA provider for your area. They should then ring you to conduct a telephone interview. If you pass that they should invite you to an Induction day, where the scheme will be explained in detail.

To be able to progress on the scheme you MUST write a business plan and a cashflow forecast and these MUST be agreed by your business mentor who will be allocated to you by your scheme provider.

The financial support on the scheme is made up of 26 weeks of weekly payments and the option to take a loan of up to £1,000. Please be aware this is a loan and NOT a grant and so if you borrow £1,000 they want it back plus interest.

If you have a business idea and are willing to work very very hard then this scheme could be for you. Just answer this question; Would you take a job now for less than the minimum wage on the promise that if you worked really hard and really long hours you would start to earn more than the minimum wage and that there was no limit to how high your earnings went? If the answer is "yes" then maybe self-employment is for you. If the answer is "no" then don't put yourself through the pain.

Van 21/06/2012 at 1:26 pm

Hi i am busy setting up a childminding business and would like to find out if there's any funding availabe?or any financial help

tarique 06/06/2012 at 11:53 am

i want to know about gov. scheme for making sanstha in nagpur
and loan / subidy facility for sanstha.

Moji 01/06/2012 at 11:06 am

Sir first of all i want to say that i have no money.
My father is not able to invest more than Rs. 100000
So please suggest me which business is sutable for me.
Which have minimum chance to fail.
Or any Govt. help (Financial help) for me.

shaffi 01/05/2012 at 2:26 pm

i want to go self employed after completing nvq level 2 diploma in plumbing and central heating. Is there any funding or grants available to purchase a van and other equipment such as fire extinguisher, steps, ladders and other specialist equipment, i would be really greatfull for your help and any advice you can provide

Jessyp 09/04/2012 at 11:00 pm

Hi could someone help me I'm self employed beauty therapist and rent a beauty room I'm a low earner and need fianacial help do the governent allow dole money to self employed low earners and do they pay stamp if so how do I get this

Edith 08/03/2012 at 12:36 am

Hi. This message is for Karyn, Spartans69 and many more. My name is Edyta (Edith in english if you like). Seven years ago I came from abroad for better life. I will never agree that I am a dog, working for min wage. When I first came, of course I've start from min , be a housekeeper, then private house cleaner. In same time I learned english. I was warking in the shop as shop staff then manager. 2 years after I have changed my work for receptionist in business centre. Last year I had a little girl so I went for maternity leave. Even be a pregnant , I worked till 39 weeks!!! No many people do that. My midwife said to me that so many english womens and girls goig to earlie for maternity bec want's to get money from Government. I know is true because I know so many english that complaint for foreigners and never wanted to work for min exp do cleaning job. I never get any benefits and not even tryied. I always pay huge tax. And is it not fair to saying calling "'me'' like dog!!!
Now I have done some trainings and I will start my little business. I payed for everything for my self or my husband (from abroad as well)pay.
I am very unhappy to read comments like that because not everybody the same!!

Spartans69 22/02/2012 at 12:28 pm

Me and most of my friends are in the same boat as karyn above , I feel this government has more time for scrounging foreigners than it does for us brits , I am being evicted soon due to not being able to pay my rent as this government thinks that my local housing rate is £103 pw ng11 area but when i look in the papers and on the net its almost always £130 to £140 pw , Im guessing they set there rates based on council housing prices not private landlords , I have 1 child living with me and have been on the council list for years awaiting a house and when i see houses come on the homelink website i goto the road and find the property to keep an eye on who gets it when i am fobbed off and it is more often foreigners ,homeless drug addicts or local people that have been waiting a lot less time than me and my son its about time somebody kept a regular eye on these government agencies and shamed them for letting us down repeatedly... Life is very unhappy for us uk residents due to a massive influx of foreign workers that are prepared to work like dogs for minimum wage ... We need to protest and stick to our guns like the greeks as us brits have clearly lost our backbones ;)

none 10/02/2012 at 5:59 pm

please send further detail on this and all schemes

none 10/02/2012 at 5:56 pm

Need contact and further info on New Enterprise Allowance and any other assistance for jobseeker planning imminent business start

Karyn 19/09/2011 at 1:40 pm

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?

sammy 12/06/2011 at 6:14 pm

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

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