Starting a business is tough! Thankfully there are different government schemes available designed to financially support a disabled entrepreneur when starting their own business. Entrepreneurs now (if they are eligible) have several options for financial support when running their business. Schemes such as Test Trading, Permitted Work and Working Tax Credits are the main three schemes that entrepreneurs join to get financial help when they first start their business.
If a disabled business person is eligible for all three schemes, then some time must be given to consider which is the most suitable for them and the business. Each one has advantages and disadvantages, the wrong choice could mean missing out on grants and other financial support.
Test Trading
Advantages
1. You can stay on your benefits whilst testing your business idea for up to 6 months.
2. After the 6 months if you decide to go back on your benefits there is a smooth transition back to your existing level of benefits.
3. You are eligible to apply for Access to Work.
4. You will be allocated a business mentor to help you develop the business.
Disadvantages
1. You will have a joint bank account with the provider of Test Trading. These providers are usually flexible but it could mean a delay when you want access to your money. This may not affect a lot of businesses, but if you need money quickly for a contract and it’s out of office hours, then there could be a problem.
2. You may not be eligible for grants that are only issued when you sign off your benefits.
Permitted Work
Advantages
1. You are eligible to apply for Access to Work.
2. You can trade whilst still receiving your benefits
3. You can stay on the scheme for up to a year
Disadvantages
1. You can only trade for 16 hours
2. You can not earn over £88.50 profit without it affecting your benefits
3. You may not be eligible for grants that are only issued when you sign off your benefits
Working Tax Credits
Advantages
1. You could receive a payment that totals over your current level of benefits.
2. It is possible to stay on the scheme over a year.
Disadvantages
1. Receiving Working Tax Credits may affect other benefits, lowering your overall benefit income
2. At the end of each year you will be reassessed, which will involve the completion of documents.
4 Responses to “Test Trading Vs Permitted Work Vs Working Tax Credits for the disabled entrepreneur”
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July 28th, 2009 at 12:13 pm
i have been on benifits for three years, i have been phisical and mental health problems, but have been working very hard to improve my life , after the death of my son, a heart attack, and skin canser, it has been a hard struggle, but i have now nearly reached my goal, in starting a m/blie food buisness, i am vry worried about my change from benifits, to supporting myself, and i am trying to deal with the final steps to completion, i have been looking for the right help but have been very frustrated, in trying to find help from the right direction , my main conserne is my home and security, making a decision, to take the final steps, is always a set back, and makes me worried for my well being . i would like some help in finding the right way, thank you , nelson digby
July 28th, 2009 at 6:10 pm
Hi Nelson
Do you qualify for Test Trading, Permitted Work or Working Tax Credits? Are you on benefits at the moment? What are your concerns? are they financial?
September 9th, 2009 at 12:35 am
hi jion, well i am still receiving incapacity, and pention credit,i am ready to start, as far as my buisness aquipmentand tools for the job, i have just finnished radio therapy, and i am recovering well,i have also had surgery, removing malignent basal cell cacanomas, for the 13th time, my new pacemaker has been renewed with a more moden one , the other was in since the falklands, and my collet stent is holding up, so im like my catring truck, ready to go,my main conserne as i said is my well being, and i suppose that im worried, to take the last steps, a set back could ruin my last chance, to provide for myself and prove to evrybody that has supported me throughout my recovery, my mental state is much improved,and i can focuse my mind much more, i feel hesitant, my aim is to start work on the first of january 2010, in the local shoping mall where i live, , but to do this ive to pay a consent fee of one thousand pound to the local counsilwich would use all my stock and starting funds leaving me nothing, also becuase im not totaly one hundred percent i am not able to approach the counsil for the permission, because of being treeted like just another hot dog van with crap food at high prices, when there is so much more to what i have acheived, if i had more confidence to approach the right people,i could have started some time ago . its always been my worst fear . to be rejected. by , the people who can realy help, i think its important, for them to know that its not just starting a buisness its starting my life again, the process of approaching the right people is confusing to me so many deparments and finding some one in the end who dosnt give a hoot, if i was sure that i was fully protected, on my transition, i would be more sure of my well being,i think any body coming up from the depths of despair, needs a little more support than others who have not sufferd the obsticals, that others have ,im not looking for the simpathy vote, just a bit of help, when it counts, ive saved the lives of 47 people, in my time, and have acheived some amazing things, i have great skills,so im confident that i can be succsesful,. the name of my company is victory mble catering, the name is not just connected to my name its also connected to what can be acheived, a real victory,, thanks for your consern, nelson
September 9th, 2009 at 5:49 pm
Hi Nelson
Are you certain that you have 100% of the support on offer. If you start your business before getting all the support then you may miss out. The Government has just started a new program called self employment credits which equals £40 per week. Also is there any support from the army. In th past i have come across grants to help ex armed forces set up in business