Left job to set up company, Social welfare

Bakharwaldog

Hi folks,

I have a couple of questions but first I'll give you a bit of background. I recently left my job of 2 and a half years with the aim of setting up my own company. The company is in the R&D phase and as such will not be making any money for the next couple of years, I do have some funding for the company and could afford to pay myself something quite small in order to live off. In order to stretch the company money as far as possible I was thinking about trying to claim social welfare instead of paying myself or to reduce what I need to pay myself. The issue is that as I left work voluntarily I will need to wait 9 weeks before I can claim.

1. If I go in to the SW office and explain the situation is there any chance they will give me the dole right now? Would they just understand what I am doing and waive the 9 weeks out of soundness?
   
2. If I go in and say that I left my job to work in a start up company that subsequently realised that they can't afford to pay me will I be able to skip the 9 weeks?
   
3. Will I be able to claim part time dole immediately, I'll say my new employer can only afford to pay me 2 days a week and claim 3 days dole
   
4. If I pay myself from the company for the next month or so and then issue myself a P45 and then go into dole and tell them that the company I was working for could no longer afford to pay me and let me go. WIll I be able to get around the 9 weeks in this way?

I'm tempted to go in and try and chat to them as they may have some other form of benefit I can make use of however I don't want to burn any bridges with some of the above questions if they say there isn't any.

Also as I am the owner of the company (which is registered as a Ltd) will that impact on any of these? Am I better not mentioning this?

Any help is greatly appreciated!

Thanks!

Geniass

That's not the purpose of social welfare.

To be eligible for Social Welfare you need to be available and willing to work.

Your time will be spent working on your company and therefore not eligible for SW.


Good luck with your venture.

EDIT - I'm sure I'm picking you up wrong, but claiming Social Welfare fraudulently (getting it on the sly) would land that person in a whole world of hurt if it got found out. Being a Director of a company and claiming Social Welfare would be HIGHLY Risky. Not that's what you intend.

Bakharwaldog

Geniass wrote: »

That's not the purpose of social welfare.

To be eligible for Social Welfare you need to be available and willing to work.

Your time will be spent working on your company and therefore not eligible for SW.


Good luck with your venture.

Cheers for the response. Yeah I definitely get what you are saying and agree that technically I will not qualify, I'm hoping there might be some loophole or some way of approaching this that might improve my chances of getting something.

I've heard of phd students whose funding has run out qualifying for SW so it definitely isn't as black and white as that.

Kristopherus

You could try Welfare for the Short-Term Back to Work Enterprise Allowance. This was introduced in 2009 to help people like you. You will have to be in receipt of Jobseekers Benefit, but you should qualify for that after 9 weeks.

http://www.welfare.ie/en/Pages/Short-Term-Enterprise-Allowance.aspx

Geniass

c_k_m wrote: »

I've heard of phd students whose funding has run out qualifying for SW so it definitely isn't as black and white as that.

That would make sense, but nowhere comparable to your situation.

The best bet is per above, some support for the business. There are a few out there. Give a look at the Entrepreneurs forum under BIZ. You could get a lot of help there.

myshirt

Have you looked at the seed capital scheme? You could potentially claim back your taxes from the last number of years and put this into the business. Explore that. Also explore the R&D tax credit, it is refundable even if you do not make any profit.

There is a start up exemption also, but very few companies are in a position to benefit from that.

These might help you in addition to what other posters are saying. Best wishes.

haveringchick

You cannot get a Jobseekers payment because your not a Jobseeker, apart from other conditions you don't meet.
You won't qualify in 9 weeks either or any amount of weeks while your running a business because your neither looking for or available for full time work.
You'd only be wasting your time and theirs.
There are no loopholes or shortcuts unless you want to attempt to commit fraud which is frankly preposterous.
You need to find your local county Enterprise Board and see how they can help you.
There are SW schemes to assist you to employ someone, should you need to.

Rogueish

Oh Holy Moses!

You are NOT a job seeker, therefore not entitled to jobseekers allowance. You have now entered the 'wonderful' world of self employment. Yes, as a director of your own company you are now self employed and subject to a whole different set of rules.

Get yourself down to your local enterprise centre and see what funding you maybe be eligible to apply for as a new start-up.

Otherwise get yourself a second job to supplement your living expenses.

If you do get jobseekers allowance remember that it is attached to your PPS number. The same number that will be attached to your new business accounts (which as a limited company will have to be audited) due in 12 months. Fraudulent claims when found out carry penalties, an additional cost which any new business /director does not need.