When deciding if self-employment is right for you, many people have questions about how running their own business could impact any benefits they receive from government.
Read on for our answers to some frequently asked questions about selfemployment and benefits.
Are there any benefits I can claim whilst I am developing my business?
Depending on your circumstances, you may be able to claim Universal Credit.
You can find out more information by visiting the Claiming Universal Credit when you are self-employed page on the GOV.UK website.
You may also find it useful to use the GOV.UK Benefits Calculator to find out more about which benefits could be available.
I am already receiving Universal Credit – how will self-employment affect this?
You can find out more about self-employment and Universal Credit by visiting Self-employment and Universal Credit section of the GOV.UK website.
DWP have produced a short video which explains how to report your business income and expenses to DWP.
I am receiving another type of Jobcentre benefit - how will my selfemployment affect that?
A change in income and employment status could affect a range of benefits.
You can get further advice and guidance by contacting the appropriate benefit team.
Contact details for each benefit team are available on the GOV.UK website.
Are there other local organisations who can provide help?
A list of support organisations who specifically provide guidance for self-employment is available on the GOV.UK website.
If you are claiming benefits through the Jobcentre, you could speak to your work coach to find out details of other local support that may be available.
Is there any other support available to help me develop and grow my business?
You and your business can get guidance and financial help from various government-backed schemes.
This can provide support in a number of ways, including help with tax, exporting, and guidance on writing a business plan.
Start Up Loans, for example, a government-backed loan scheme designed to help people start their own
business, offers a year’s worth of free mentoring to everyone who successfully applies for a loan.
They also offer guidance on writing key business documents such as a business plan, cash flow forecast, and personal survival budget.
You can find more details about how to access this support on the Get help and support for your business
section of the GOV.UK website.
Additional support may also be available through Support from the UK Government - Help to Grow page.
See the ‘Getting support’ section of this guide for more organisations that could help you on your journey to self-employment.
I have a disability which means I will need more support to be able to work. Is there any help available?
If you have a disability, you may be able to access additional help to support you with your self-employment through Access to Work.
Access to Work can help you get or stay in work if you have a physical or mental health condition or disability.
The support you get will depend on your needs and could include:
- grants to contribute to practical support for your work
- help with managing your mental health at work
- funds to pay for communication support at job interviews.
You can find out more via the Access to Work section of the GOV.UK website.
Go further with start up loans
Your previously read articles
Chapter 6.4
Business foundations
As well as choosing your business structure, you’ll need to create a business plan.
Learn more about business foundationsDisclaimer: The Start -Up Loans Company makes reasonable efforts to keep the content of this article up to date, but we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. This article is intended for general information purposes only and does not constitute advice of any kind, including legal, financial, tax or other professional advice. You should always seek professional or specialist advice or support before doing anything on the basis of the content of this article.
The Start-Up Loans Company is not liable for any loss or damage (foreseeable or not) that may come from relying on this article, whether as a result of our negligence, breach of contract or otherwise. “Loss” includes (but is not limited to) any direct, indirect or consequential loss, loss of income, revenue, benefits, profits, opportunity, anticipated savings, or data. We do not exclude liability for any liability which cannot be excluded or limited under English law. Reference to any person, organisation, business, or event does not constitute an endorsement or recommendation from The Start-Up Loans Company, its parent company British Business Bank plc, or the UK Government.
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