btwea

miss tickle

I'm in a quandry here, I have an opportunity to start a company which has an immediate customer base. I need to set it up as an ltd company, however funding is an issue as I have been unemployed since feb 2012, and my partner is a qualifying adult. I have been looking at the btwea as this would be vital for living expenses for our first year of trading, however I am unsure if I pay myself a wage under a limited company whether this will affect my claim. If I set up as a sole trader and my partner sets up as an ltd company can I effectively bill the company for a modest amount for my services and still retain btwea until we are up and running. Thank you for any replys.

Hanley

Not sure aboute BTWEA but was under the impression that with STEA you maintain the claim for the duration regardless of how the company does. You're local welfare office is where you need to go to check.

Peterdalkey

the information is all here http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/social_welfare_payments_and_work/back_to_work_enterprise_allowance.html

miss tickle

Thanks for the advice, If i qualify I don't want to make any stupid mistakes which will land us back where we started.

Peterdalkey

miss tickle wrote: »

Thanks for the advice, If i qualify I don't want to make any stupid mistakes which will land us back where we started.

The enterprise office at the local social welfare office will be able to answer all your questions and clarify the rules and they are generally very helpful.

Kevin Barry

Depending on your business type it would be great to break even for the first year so drawing down a salary would be a bonus. Just to note that if you own a limited company you will be able to draw down certain director expenses which are not classed as income such as travel/subsistence etc. but as once you enter the self employed/company bracket you are disadvantaged if things don't work out.

Peterdalkey

Kevin Barry wrote: »

Depending on your business type it would be great to break even for the first year so drawing down a salary would be a bonus. Just to note that if you own a limited company you will be able to draw down certain director expenses which are not classed as income such as travel/subsistence etc. but as once you enter the self employed bracket you are disadvantaged if things don't work out.

Expenses point made above self employed versus director is simply not true, ignore.

miss tickle

Thanks for the above advice, I'm pending approval on receipt of my tax reg. I've registered as a sole trader and hope to transfere to an ltd at a later stage (when living expenses are not an issue). I have been advised (not professionally), that once I take a salary, this will affect my entitlement to btwea, and at this early stage (although it affects my professional profile), I'm not sure I can risk it as income may be inconsistent initially. Again many thanks for taking the time to respond to my query.

NoQuarter

miss tickle wrote: »

I have been advised (not professionally), that once I take a salary, this will affect my entitlement to btwea

I'm pretty sure this isnt the case. You really need to take the 5 minutes it takes and call the social welfare office, the numbers are on the website, and ask them to clarify.

In fact, I think to even get the btwea you need to show that your business is viable and you'd assume that if your business is viable and making a profit that you would be paying yourself a salary.

Peterdalkey

You can earn as much as you like during the period of the benefit without any consequences.