I’m thinking of starting a business… What support is available to me?

What support is available when starting a business? If you’re currently employed and thinking that you might venture into the big wide world of self-employment, access to finance and support can be one of the scariest things to consider. Once your usual consistent monthly income is no more, how will you cover expenses such as rent and bills within the first few months of setting up?

Luckily, there are at least a few options available, meaning that you’re never totally on your own when going through this huge life change. Here, we will detail a few of these options but, if you have any further questions, please get in touch.

Support available when starting a business

Universal credit

As you may already be aware, the UK government is introducing universal credit in order to replace all other state benefits that have historically been available. When first setting up your business, you will be eligible to claim universal credit when self-employed, but must attend quarterly meetings in order to demonstrate that you are still self-employed and are taking the necessary steps to increase your earnings; this is known as “gainful self-employment”. To be classified as gainfully self-employed, the work you do must be “regular, organised and developed”.

The New Enterprise Allowance (NEA) Scheme

As an alternative to universal credit, you may be eligible to claim an allowance through the New Enterprise Allowance (NEA) Scheme. Through the NEA Scheme, you may be eligible to receive £65 per week for the first 13 weeks after setting up your business and £33 per week for the following 13 weeks. This means that, over the course of your first 26 weeks of self-employment, you would receive £1,274. Whilst this isn’t fortunes, it can certainly relieve some of the pressure when you’re first starting out on your own.

Government-backed start-up loans

There are also government-backed start-up loans available between £500 and £25,000 at a fixed interest rate of 6% per annum, repayable over 1-5 years. Each partner or owner in a business can individually apply for up to £25,000 each, with a maximum of £100,000 available per business.

Non-pecuniary support

In addition to financial support, both the NEA Scheme and government-backed start-up loans provide successful applicants with free mentoring to help grow their businesses, including exclusive business offers.

Six months’ free support from Phebys Accountants

Phebys Accountants offers a free six-month support period for start-ups. This includes six months of business support and accountancy services to help new entrepreneurs at the beginning of their business journey. This means that you have peace of mind that the support is there when you need it, without incurring yet another bill whilst you’re first finding your feet.

To find out more about their free support, or any of the other initiatives mentioned in this article, contact Phebys Accountants today on 01480 896267, or email [email protected].

You can read more about Phebys Accountants’ range of accountancy and business support packages on their website.

Phebys Accountants

Phebys Accountants

Phebys is a firm of Chartered Certified Accountants in Cambridgeshire. We offer accounts, taxation, bookkeeping, payroll and HMRC returns services to a wide range of businesses and individuals. Everything we do is geared toward providing our clients with an improved quality of life and servicing their needs so they can achieve their goals.