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 Workand 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.
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.
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.
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
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
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.
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.