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PAYE to entrepreneur

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  • 05-11-2015 11:25pm
    #1
    caff
    Registered Users Posts: 954 ✭✭✭


    Just wondering about the risk involved in moving from a secure PAYE job to setting up my own business. I would have enough cash to cover 2 years, but if it doesn't work out what happens? I have heard about difficulties with self employed people claiming dole?
    worst case scenario I loose everything company winds up, what happens then? I checked the link below on citizens information and it appears you can carry over some PRSI from PAYE employment but it still appears to be at the whim of social welfare and not guaranteed. This does appear to be something that discourage me from taking a risk of setting up my own business. Its not really loosing my savings but the safety net that I would have paid for in PRSI that would scare me away from setting up my own business. http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/unemployed_people/self_employed_and_unemployment.html


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    #2
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    If you have funds for two years then you should be OK after a year to 18 months it's likely to be pretty obvious whether it is working or not and you can wind it down and have 6 months of funds to get yourself up and running again!

    Don't worry about what happens if you fail focus on how you're going to spend all the money when you're flying. The first six months of most businesses are hell if you're worrying about dole now then I dread to think what you will be like after a few bad days a couple of months down the line. Stay positive you aren't going to fail no need to worry what happens in that situation.


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    #3
    antoinolachtnai
    Registered Users Posts: 9,793 ✭✭✭antoinolachtnai


    Just be sure you understand how much stuff really costs and that you will be able to become sustainable with the cash you have. There are a lot of expenses in running a business. The money might be enough to sustain you for two years, but it might not be enough to sustain you and develop the business. You need to be fairly certain about that.

    On the other hand, two years savings is a lot of capital to invest. You need to be sure this is the best thing.

    Self employed people can claim dole. It is not strictly true to say that they can't. What they can't claim is Jobseekers' benefit. They can claim Jobseekers Allowance. The problem with JSA as against JSB is that JSA is means-tested.

    As a self-employed person you benefit from a lower rate of PRSI which is a small compensation. (There are swings and roundabouts to this.)

    Realistically, if it doesn't work out, you want to be in a position to just apply for a job and start again where you left off. If you are good at your job, you will always get a job again. But don't burn any bridges!


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