Short Term Enterprise Allowance (STEA)

St1mpMeister

I was on JB and decided to start my own ltd company, so I availed of the STEA which aids with setting up a company and they will continue paying your weekly benefits for the remaining months that you are entitled.

The one clause is that you must be fully dedicated to the business setup and not take up employment with another company.

I'm now running the ltd for the past month, and have my first payslip due at the end of the month, but so far I've been relying on the STEA weekly payments as my sole income. As a director I am registered as an employee of my own company.

I checked my bank account recently and see that they stopped paying the STEA a week ago. I enquired about it and was told that I'm no longer eligible since "the guidelines state that you are not allowed to take up paid employment, whilst you are registered as self-employed".

When I said I was an employee of my own ltd company (as that's what you are supposed to do when you set up a ltd.. vs a sole trader setup) they responded:

I would like to bring to your attention the Guidelines regarding BTWEA AND STEA schemes.

Q11. What is the position if a BTWEA client takes up employment (either full-time or part-time) or persues a course of education?

A. Participants are not allowed to enter into paid employment as an employee, either in a full-time or part-time capacity while in receipt of BTWEA/STEA. It is considered appropriate that if someone is approved for the BTWEA/STEA, s/he should be fully dedicated to the business and, therefore, not engaged in other employments. Accordingly, participants cannot pursue part-time or temporary employment while participating on the Scheme. This will ensure that clients are devoting 100% of their time to the business venture to maximise the chances of success.

Now, to me, this appears to say that if I take up employment with ANOTHER company other than my own that I am no longer eligible.

But surely working as an employee of MY OWN ltd company is separate as I'm still fulfilling the requirements of the STEA grant and "devoting 100% of my time to the business venture" ??

Or more specifically... HOW are you supposed to run a ltd company and still be eligible for STEA if you cannot become an employee of your own company?

clio_16v

You are probably registered as a PRSI Class A employee when you should be PRSI Class S. Class S is self employed afaik, Class A means you're a regular employee of your own company.

St1mpMeister

clio_16v wrote: »

You are probably registered as a PRSI Class A employee when you should be PRSI Class S. Class S is self employed afaik, Class A means you're a regular employee of your own company.

Nope, I'm registered as class S, a director of the company.

In case the case officer can't help is there someone higher up I can consult?

JackieChang

St1mpMeister wrote: »

Nope, I'm registered as class S, a director of the company.

In case the case officer can't help is there someone higher up I can consult?

Did you manage to get this sorted? What happened in the end?