Return to Work Credit is available from Job Centres in the “Pathways to Work” areas (ask your Disability Employment Adviser if you qualify). It is a tax free payment of £40 directly into your bank account for up to 52 weeks. This could mean a disabled person starting their own business could be in line for a payment of £2080 whilst they are on other government schemes. Read my article on Test Trading, Working Tax Credits and Permitted Work.
Usually a person will qualify for Return to Work Credit if;
1. They have been claiming one, or any combination of the following for 13 weeks or more;-
Incapacity Benefit (including credits only)
Income Support (because of your incapacity)
Severe Disablement Allowance
Statutory Sick Pay for 13 weeks or more and now claiming any of the above benefits
2. They are working more than 16 hours a week.
3. They expect a personal annual salary before deductions to be £15,000 or less per year (What you are paying yourself?).
4. They expect the business to last more than five weeks.
Return to Work Credit is a great way of contributing to your wage when on Test Trading or claiming Working Tax Credits. Many disabled entrepreneurs manage on these schemes during the first year of trading. This gives their business a great chance of survival, plus they can concentrate on running the business instead of stressing about how they are going to pay themselves.