Back to Work Scheme

Chubbcakes

has anyone experience with the Back to Work Scheme. Sounds kinda scary, you only receive 75% of DSS payment in the first year....what happens if your start up does not do so well? How supportive is the scheme?

TheCostumeShop.ie: Ronan

There's two different types the normal back to work schemes.

"The Back to Work Allowance Scheme encourages unemployed people (among others) to take up employment. The Scheme is aimed at people getting a social welfare payment for a certain period of time. But the in the supplementary budget of April 2009 it was closed to new applicants from 1st May 2009."

[ Off topic Rant: I had a personal gripe about the above one when a guy I employed told me his dole officer suggested he leave the job after a he joined to continue on the dole for another two months. He told me he'd then reapply in two months and earn 175% of what his peers were making.]

But then there's the enterprise back to work scheme, which is:

"If you are getting certain social welfare payments and you would like to become self-employed, the Back to Work Enterprise Allowance (BTWEA) lets you keep a portion of your social welfare payment for 2 years.

You must have your business approved by your Partnership Company or a Facilitator from this Department before you start self employment."

Source: Welfare.ie / Fas

The BTWEA is a great scheme to encourage people who otherwise couldn't afford to take the risk by limiting the downside. If your start up doesn't succeed you've lost nothing but your time and whatever you chose to invest. Go for it, running your own business can be the best feeling in the world.

marley007

Hi, I thought it was 100% the 1st year and 75% the second year!? Thinking of doing this myself in the not so distant future. I havent been able to find out anything on what happens if it all goes tits up! But I'd assume your treated as a self employed person! hope I'm wrong tho!

TheCostumeShop.ie: Ronan

I'm not really following what you guys mean by what happens if it fails? There's really only two options, if your a sole trader and it fails your personally responsible for any losses the business makes. If your a limited company then you loose all the capital you invested in the business and it winds up. Limited liability company means they can't go after your personally unless you sign personal guarantees (not advised) or unless you do something as a illegal director which means your no longer protected.

Either way, you pick yourself up and try again with another idea or absolute worst case scenario end up working for someone else.

Hope that helps?

nellyshark

I think they might be referring to their entitlements if the venture fails. Well that's my understanding of the posts anyways.

Off topic:

[ Off topic Rant: I had a personal gripe about the above one when a guy I employed told me his dole officer suggested he leave the job after a he joined to continue on the dole for another two months. He told me he'd then reapply in two months and earn 175% of what his peers were making.]

Thats pretty scandalous! This country :rolleyes:

TheCostumeShop.ie (Ronan) wrote: »

I'm not really following what you guys mean by what happens if it fails? There's really only two options, if your a sole trader and it fails your personally responsible for any losses the business makes. If your a limited company then you loose all the capital you invested in the business and it winds up. Limited liability company means they can't go after your personally unless you sign personal guarantees (not advised) or unless you do something as a illegal director which means your no longer protected.

Either way, you pick yourself up and try again with another idea or absolute worst case scenario end up working for someone else.

Hope that helps?

Shambo

I just started my business in February and I am getting 100% of my JB allowance. I was made redundant in Octiber so I get the full 100% until October 2010.

As an aside, I also got a grant of 1000€ towards advertising- it'll more or less pay for my website,

nellyshark

Shambo wrote: »

I just started my business in February and I am getting 100% of my JB allowance. I was made redundant in Octiber so I get the full 100% until October 2010.

As an aside, I also got a grant of 1000€ towards advertising- it'll more or less pay for my website,

The 1K was part of the BTWEA? Do ones business have to be profitable/already trading before one can apply?

TheCostumeShop.ie: Ronan

I'd assume that you couldn't apply if you have already been trading, it would need to be a completely new venture that hasn't started at all.

nellyshark

Profitable/already trading was the wrong choice of words!

How do they access this, I mean, you don't just say I want to start my own business, let me join, one would have to have a business plan, marketing plan and all that surely?

TheCostumeShop.ie (Ronan) wrote: »

I'd assume that you couldn't apply if you have already been trading, it would need to be a completely new venture that hasn't started at all.

TheCostumeShop.ie: Ronan

Yeah you have to submit to a panel for approval. Obviously it's not going to be too easy to get or any joe soap who washes cars and windows would double their income by using it as a loop hole.

Caoimh37

marley007 wrote: »

Hi, I thought it was 100% the 1st year and 75% the second year!? Thinking of doing this myself in the not so distant future. I havent been able to find out anything on what happens if it all goes tits up! But I'd assume your treated as a self employed person! hope I'm wrong tho!

As far as I know it does not exclude you from reapplying for Job seekers allowance if the business does happen to go belly up.

Biz plan is needed and projections to show it is viable and will support you in the future.

You must reg the company first but tax reg must be done via the jobs facilitator so that they know it is a proper business with a VAT number

ruthie23

hi can you tell me the steps involved in getting on part time enterprise scheme, do you still have to sign on and collect at post office.how long does it take

Deesse

A friend of mine availed of this scheme and his car business is just going down the tubes big time. What is the precise situation regarding his benefits if the business winds up?

rainbowdash

Deesse wrote: »

A friend of mine availed of this scheme and his car business is just going down the tubes big time. What is the precise situation regarding his benefits if the business winds up?

Just go back in and tell them and you back on whatever dole you were on beforehand AFAIK.

Ring them or call in and get factual advice. Lots of misinformation on the internet.

Deesse

Thanks Rainbow, but do you actually know that to be the case? He's just in a bad place at the moment and i think he's afraid to ask them. He's afraid that he'll be treated with the typical disdain this country has for self employed - i.e. All benefits cut to zero!

rainbowdash

Deesse wrote: »

Thanks Rainbow, but do you actually know that to be the case? He's just in a bad place at the moment and i think he's afraid to ask them. He's afraid that he'll be treated with the typical disdain this country has for self employed - i.e. All benefits cut to zero!

Like I said the best thing is to ask them. Self employed do not get zero benefits either. They get same as everybody else after their 12 months of stamps run out.

Benefit is means tested and while waiting for it the community welfare officers hand you the cash if you can show you have nothing.

As I said already the only thing to do is go in and talk to them. A lot of what you will get on boards.ie is heresay and misinformation.

Deesse

I appreciate your feedback Rainbow, and will encourage him to bite the bullet and talk to them.