Confessions of a Single Mum» Confessions of a single mum http://www.confessionsofasinglemum.co.uk ......It's OK to be a single mum Wed, 28 Jul 2010 13:01:33 +0000 en hourly 1 http://wordpress.org/?v=3.0 The Best Laid Plans of a Single Mum http://www.confessionsofasinglemum.co.uk/being-made-redundant/the-best-laid-plans-of-a-single-mum/ http://www.confessionsofasinglemum.co.uk/being-made-redundant/the-best-laid-plans-of-a-single-mum/#comments Mon, 01 Feb 2010 11:13:28 +0000 Confessions http://www.confessionsofasinglemum.co.uk/?p=838 I have a plan. I want to go self employed. Now it seems a very nice plan in my head but when I sit down and look at the figures it’s not such a good plan. I am a worse case scenario sort of person. I like to know the worse case and be prepared then I know anything else is a piece of cake. So with trusty excel sheet groaning at the amount of calculations and different scenarios, I have studied the plausible situations I am faced. I have taken into account the child and working tax credits, any housing benefit etc that I would be entitled to at each scenario but what gets me is that in starting up the business there is no direct help available for me – to put it simply I am too old or not old enough.

The basics of my situation – I want to become a web site designer. I have been making small websites for myself and friends for long enough to realise it’s my passion. Website design and SEO have been my hobby for many years, so with lots of research and thinking I have decided to take it to the next level. I have always followed the strict regime outlined by the benefit system but in doing so my paying customer number is down there on the nonexistent level.

At nearly 40 I am too old for the New Business schemes that are out there.

(Tip– figure out what you want to do with your life way before your 30th birthday)
There are schemes available for the over 50’s who want to be self employed.

Also when I was made redundant I was put on income support automatically as I have two children. Now if I had been put on Job Seekers allowance then the step into self employment would be rewarded with a Self Employment Credit of £50 a week for 16 weeks which is a total of £800

(Tip – if made redundant check if income support or Job seekers allowance is the better option- You will have to ask as the pros and cons are not voluntary explained).
If I estimate that in the new stages of self employment I won’t be working many hours then this too goes against you. Notch up at least 16 hours plus a week then I get a one off payment of £250 through the Job Grant scheme.

Now if I stay on income support for another 6 months and then launch into being self employed after a full year of income support then I would qualify for In Work Credit. This is £40 a week for 52 weeks, a grand total of £2080.

In the grand scheme of things if I was sure I would be working over 30 hours a week and had lots of customers lined up then yes I would be hugely better off. But in starting up the business the early days are the days that the help is needed when customer numbers are low. It’s not like flicking a light switch and hey presto working lots of hours lots of customers.

So I have no option but to start gradually and inform the relative benefit sections of my increase in hours and income. This also cancels out the entitlement of the above schemes. I think this post could be now called I am about to launch a business on nothing.

Now don’t get me wrong I know it will be a lot of hard work to start up – it wouldn’t be rewarding if it was easy. I am not looking for an easy route. It’s just sad that out of all the help that is out there I don’t fit into any of the categories.

Help that is out there for single mums going self employed.

Child Tax Credit

Working Tax Credit – eligible when working over 16 hours a week.

Housing Benefit

Income support – eligible if working under 16 hours a week.

In Work Credit – tax free payment of £40 per week for up to 52 weeks. You may get it if you are bringing up children alone, will be working more than 16 hours a week and expect to work for 5 weeks. You also have to be in receipt of Income Support or Jobseekers Allowance for 52 weeks prior to starting self employment.

Job Grant – a tax free lump sum (£250 for single parents) you need to have been claiming Employment and Support Allowance, Incapacity Benefit, Income Support,

Allowance or Severe Disablement Allowance for more than 6 months and start work for more than 16 hours a week.

Self Employment Credit – You need to have been claiming Job Seekers Allowance and move into self employment and work 16 hours a week or more. Self Employment Credit is not available if you claim Return to Work Credit or In Work Credit. It is paid at a rate of £50 per week up to 16 weeks. It is not counted as income when tax credits and Housing Benefit are calculated.

The Prince’s Trust- helps 18 – 30 unemployed start up their own business.

Prime – Helps the over 50′s set up their own business.

Please – if there any any self employed single mums out there get in touch and share your experiences.



]]> http://www.confessionsofasinglemum.co.uk/being-made-redundant/the-best-laid-plans-of-a-single-mum/feed/ 0 Switching to Benefits http://www.confessionsofasinglemum.co.uk/being-made-redundant/switching-to-benefits/ http://www.confessionsofasinglemum.co.uk/being-made-redundant/switching-to-benefits/#comments Sat, 27 Jun 2009 07:42:03 +0000 Confessions http://www.confessionsofasinglemum.co.uk/?p=339 This week I had to tackle the task of switching from employment to benefits. You would think that these people would talk to each other to make things easier, but I guess that is too obvious. Instead I had to call housing benefit, jobcentre and the tax credit people. Knowing that they only work form the date you inform them I had rung all three on the day I was given my redundancy letter. I explained I would be redundant in a month’s time but taking the final week as holiday. Pretty straight forward, or so I thought. I called the job centre and explained exactly that, I was told to call back the day I actually stopped work. As too the tax credit people. Housing benefit are a bit more clued up and took note that the change was happening and actually made sure I knew who else I had to call. Gold star for housing benefit.

So I worked my last day in the office and next day armed with P45 I contacted the three amigos again. Tax credits have told me to call back at the end of the month as the holiday week is still classed as employment. Housing benefits took a copy of my p45 and have adjusted my claim ready for when it changes. They can already tell me what and when I will get paid. Another gold star for them. Job centre, well I don’t think they will be gaining any gold stars form me. I filled out my claim on line the day after working as I was advised when I called them. A lady calls next day to go over more questions. Turns out a lot of questions and even I by the end of it couldn’t remember how many children I had let alone their dates of birth. Next I was informed to attend an interview the next day at the job centre and warned that only exceptional circumstances would be accepted if I didn’t attend.

 So off I trot to the job centre, 10 minutes early as usual for me. To say they have had a face lift since I last went is a bit of understatement. They are all trendy now in primary colours, sofas and not one but two security guards. Gone are the days of walls of jobs on note cards, instead its full of fangled touch screen machines complete with a reception that looks like she is a maitre de of a restaurant. I have to see lady first who goes over my online claim and the questions from the telephone call. Of course it is wrong, the lady on the phone must have got bored and click happy. Once corrected I am asked to wait for the lone parent advisor. This is the lady I want to see, I have questions, lots of them. I have even written them down and have pen ready to fill in the answers. An hour later I leave despondent and with no answers. I was basically told to ask all those things if I still want to know in 6 months time.

As for knowing when and what I will be paid, well your guess is as good as mine. At a time where I am going to a smaller income, I am responsible enough to have an excel sheet that tells me what I have to spend and when. ( by the way Christmas this year will be moving to 4 months later as my excel sheet tells me I can afford it then) I do know what I will get once they have sorted it all out as I checked on Entitled To and that is pretty much accurate for my circumstances.

So my advice if your about to go this route.

  • Call all of them as soon as you know your circumstances are going to change.
  • Check what your are entitled to, don’t rely hearsay.
  • Explain to your landlord. Housing benefit is paid 4 weekly and most peoples rent is monthly. If he knows and is forewarned he might be more lenient.
  • Keep a note of every telephone call you have with any of them.
  • Be prepared to wait for all the benefits to be sorted out. Speed and easy transition is not in their vocabulary.

 

If any one else has some advice please chip in and comment



]]> http://www.confessionsofasinglemum.co.uk/being-made-redundant/switching-to-benefits/feed/ 1 Entitled To http://www.confessionsofasinglemum.co.uk/being-made-redundant/entitled-to/ http://www.confessionsofasinglemum.co.uk/being-made-redundant/entitled-to/#comments Sun, 07 Jun 2009 07:30:10 +0000 Confessions http://www.confessionsofasinglemum.co.uk/?p=336 www.entitledto.co.uk It explains also what other things you might get financial help after you fill out its questions. It may go on for a few pages but bear with it as I have found]]> Wanting to know what I might be entitled to once I am not working, I found a really useful site that ( for the UK) tells you what you might be entitled to and from who. www.entitledto.co.uk It explains also what other things you might get financial help after you fill out its questions. It may go on for a few pages but bear with it as I have found it fairly accurate and only a matter of pence adrift. I can only say this is accurate  though  if you have straight forward circumstances as I haven’t checked it against the more complicated sets up.


]]> http://www.confessionsofasinglemum.co.uk/being-made-redundant/entitled-to/feed/ 0 Unemployment here I come http://www.confessionsofasinglemum.co.uk/being-made-redundant/unemployment-here-i-come/ http://www.confessionsofasinglemum.co.uk/being-made-redundant/unemployment-here-i-come/#comments Sat, 06 Jun 2009 07:07:58 +0000 Confessions http://www.confessionsofasinglemum.co.uk/?p=286 If your reading this from the UK you will have some idea what the job front is like. I too will be joining the unemployment numbers at the end of this month. Mixed emotions on it though and not quiet the despondent panic stricken response I thought and most presumed I would be. If I get all depressed and start worrying how I will manage then that’s negative and not productive. Instead I am taking the positive view. It will mean it will be the first time my kids won’t have to go to the schools out club or farmed from relative to relative through the summer holidays. It means I might stand a better chance of getting them to get their homework done on time and also help them learn a few extra things too. That is before they have to get their own summer jobs in the uk or abroad! I’m looking at getting more qualifications or at least learning something with the time too. And if I come back and say in a few weeks time saying all the negative stuff, feel free to knock some sense back into me. Failing all that it will mean I can write loads more for Confessions.


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