Starting business whilst claiming under unemployment insurance????????

[poppynurse]

My husband is about to be made redundant (again ). He has loan insurance on a £7k loan. He plans to start his own gardening business when he has finished work but here lies the problem - the insurance will pay out 1/12th of the loan each 30 days whilst he is unemployed plus he will get dole. If he starts working for himself it will take him months to build up enough of a business to match the income he can get if unemployed (plus we'll have to buy him a van etc).

 

Does anyone know if he can do some work whilst claiming under ppi or would he best to leave it a few months and get some of the loan paid off by the insurance first (given that it's nearly winter and will be a struggle to generate a big enough income) Any ideas appreciated

[AndyE]

Hmm, I'd be cautious with this. What exactly does the small print for the insurance say about undertaking any sort of paid work? Most insurance companies will use any excuse to avoid paying out, so be extra careful.

 

Likewise it's worth checking about what work is allowed whilst claiming benefits.

 

As you say it'll be a struggle to get much work in the winter, maybe best to use that time for planning the business rather than risking even more problems?

[danler]

Please don't start a Gardening business this late on in the year. Most Gardeners finish their rounds at the end of October, the grass doesn't grow. They then start up in March next year. My friend owns a gardening round and the first week of november he goes away for a month to 6 weeks. He doesn't start back until March.

 

I'd use the time between now and March planning advertising and getting used to costing out jobs. Call local gardeners in your area and ask how much it is to trim a tree etc... Get them round to your garden to give you a price.

 

There are jobs for gardeners to be done in the winter and it's mainly powerwashing drives and paths, but an industrial powerwasher will set you back about 1500 pounds, as you can't relay on your customers being in the house and using their water supply, you have to provide your own. But once the grass has started growing you mainly pickup jobs as you do your rounds. , ie- neighbours of the house your gardening.

 

As for buying a van - have you thought about leasing one. It's ok buying a van if your husband is good with cars / van. We had the option of buying or leasing, it's cost us more buying one than it would have been leasing one because of the repairs, OK we do alot of miles in the van but my husband is no mechanic and the repair bills have been HIGH. You can lease a van for around 50 pound a week and if it has to go in for repairs they have to give you a replacement.

 

Hope this is some help

 

Regards

Danler

[poppynurse]

That's brilliant thanks.

Were you unlucky in the vehicle you bought or do they go wrong a lot in general?

What does your friend do for income over the winter months?

My hubbie is worried about signing on as they put loads of pressure on you to take minimum wage jobs and it's difficult because I work so he has to ferry the kids about.

[danler]

Hi Poppynurse

We might have been unlucky but it's one thing after another. My friend doesn't work over the winter, he earns enough money during the summer to last him over the winter months. He pulls in around 400 - 500 pounds a week sometimes more if someone wants a one off job.

 

 

I am afraid that I know nothing about signing on so I can't help you there.

[ukdickie31]

 

My hubbie is worried about signing on as they put loads of pressure on you to take minimum wage jobs and it's difficult because I work so he has to ferry the kids about.

 

 

 

Jobseeker Allowance can only be claimed if the person who signs on is 'available' for work. I doubt the Jobcentre Decision Makers would accept having to ferry the kids as a reason not to be able to take work.

 

There are rules about what type of jobs can be taken in the first 3 months of a claim - ask about "permitted period." Basically the Jobseeker is allowed to look for a certain type of work / salary for the first 13 weeks of a claim. After the 13th week, there can be no restrictions on the jobs / wages. Refusing a job could lead to benefit being sanctioned.

 

Be very careful about setting up a business and claiming as well. The benefit rules are very strict and could lead to prosecution if not declared.

 

Finally, given the change in circumstances, call Tax Credits - 0845 300 3900 and advise them of the change in circumstances / make a claim etc... unless you have already !

 

PM me if you need further info.

 

[poppynurse]

It's not that he can't work because of the kids just that he couldn't take a job that started before 7.30am or finished after 5pm because of child care.