Question about welfare for company director (main shareholder)

alan8525

Hi everyone,

Well here's my situation hope someone here can help.

Lost my job last year and decided then that I was going to invent a job rather than find a job. So I started my own business, with myself being the main shareholder. Didn't avail of any grants from government funding as there was none available. Been slogging away on my own, total uphill battle.

The company has been going for the last 10 months and really hasn't worked out. As much as I enjoy being the boss, It isn't putting food on the table. I don't get paid a salary or wage and any money the business makes is spent on overheads. I would guess that it is actually running at a loss.

I have been frugally living on my savings and they are starting to run dry now, and I'm in need of help. So was wondering what if any welfare is available to me? Never received any welfare payments from government, so really don't have a clue as to what I'm entitled to get. I have also been looking at possible opportunities such as spring board, does anyone know if I would be entitled to that?

I have been hearing from friends that If I had taken the dole for 6 months after losing my job, I could have then set up my business and still be able to keep the payments. Kind of feel like a fool that I didn't wait but really thought I wouldn't ever need welfare payments, as this business according to the business plan was going to make millions

Any help from someone who's been in a similar situation would be great, or anyone that's in the know.

Thanks,
Alan

dozy doctor

alan8525 wrote: »

Hi everyone,

Well here's my situation hope someone here can help.

Lost my job last year and decided then that I was going to invent a job rather than find a job. So I started my own business, with myself being the main shareholder. Didn't avail of any grants from government funding as there was none available. Been slogging away on my own, total uphill battle.

The company has been going for the last 10 months and really hasn't worked out. As much as I enjoy being the boss, It isn't putting food on the table. I don't get paid a salary or wage and any money the business makes is spent on overheads. I would guess that it is actually running at a loss.

I have been frugally living on my savings and they are starting to run dry now, and I'm in need of help. So was wondering what if any welfare is available to me? Never received any welfare payments from government, so really don't have a clue as to what I'm entitled to get. I have also been looking at possible opportunities such as spring board, does anyone know if I would be entitled to that?

I have been hearing from friends that If I had taken the dole for 6 months after losing my job, I could have then set up my business and still be able to keep the payments. Kind of feel like a fool that I didn't wait but really thought I wouldn't ever need welfare payments, as this business according to the business plan was going to make millions

Any help from someone who's been in a similar situation would be great, or anyone that's in the know.

Thanks,
Alan

Best thing that you can do is contact the local SW office and see what they can do for you.... They are very approachable and will do anything they can to help....

srsly78

OP yes welfare is available for you. However since you are self-employed you can't get JSB, you can only get JSA instead (maybe the other way around!!).

One is the normal payment people are "entitled" to for paying prsi. The other is a means-tested payment, so if you are poor you will get it. If you have a lot of savings or assets your payment may be reduced.

Peterdalkey

OP

You may well still be entitled to jobseekers benefit. Step 1 go and talk to them, they are generally very helpful. If you don't at first succeed, ask to speak with a senior person!
Step 2. There is nothing unusual in not being able to make a new business operation pay off or even provide wages in the first year, so your idea has far from failed as yet. Take a look at the STEA, it might just give you the income/ breathing space to turn the corner. http://www.welfare.ie/EN/OperationalGuidelines/Pages/btw_stea.aspx.

Step 3.......... Go back to Step 1!

Good luck with your task. And DO not take no for an answer.


Cheers

Peter

MrScootch

srsly78 wrote: »

OP yes welfare is available for you. However since you are self-employed you can't get JSB, you can only get JSA instead (maybe the other way around!!).

One is the normal payment people are "entitled" to for paying prsi. The other is a means-tested payment, so if you are poor you will get it. If you have a lot of savings or assets your payment may be reduced.

He's not self-employed he's a company director, different thing. The OP's PRSI contributions will most likely entitle him for non-means tested JSB which he'll be able to claim for the days he is available and looking for work, and he can continue to work for his company evenings and weekends. I think that's roughly it anyway.

srsly78

If he is a proprietary director (>15% shareholding) then he is self-employed and pays class S0 prsi -> no stamps.

DubTony

If your situation is "bad" enough, you'll get JSA. You're going to need a load of paperwork, but they'll let you know what they want when you apply. If you've any more than €20k in the bank you won't qualify. So basically the deeper in the crap you are, the "better off" you are when it comes to seeking JSA.

MyPerfectCousin

Does the fact that he was a PRSI-paying employee before he started his own business have any bearing on eligibility for JSB?

Let's say you're a PAYE worker for 15 years, then leave to start your own business, and after three years you're out of work. All those years of paying PRSI - wasted?

srsly78

They only count the contributions from a 2 year period (not counting the current tax year). When you start claiming the stamps run out in 9 months now (changed in recent budget).

All those other years count towards contributory pension but that's about it.

Peterdalkey

OP have you made your case to the people at social welfare? If not that should be your first move.

cheers

Peter

gfern

You are still in benefit period if your redundancy was a year ago. You should have signed on for the benefit after you were redundant I can't just think what it is called but was equivalent to benefit and allowed you to start up Business.
Anyway that doesn't help now, you now need to get a job that will pay PRSI at employees rate, once you have this and a P45 you can sign on again and would be eligible for the JSB. The job only needs to last a couple of weeks. If in doubt try the Citizens Advice Bureau they will explain the details they are most helpful with these situations and will help in dealing with SW. Best of luck it's a tough time.