Self-employment for caregivers
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Yes you HAVE got what it takes
If you’ve not worked for a while, been struggling to hold down a job, or found it impossible to land work that ‘fits’ you and your life, self-employment could be a good option for you.
It might sound like a HUGE mountain to climb, but in a few short weeks, you could be set up as a sole trader or a Director of your own Limited company, sending out your first invoice or celebrating your first online sale.
Over the last ten years, Team Transmit has supported hundreds of people to take this step.
It helps that our business advisors and entrepreneurship experts are real humans with real lives too!
Our co-founders are all self-made entrepreneurs and several of the team are taking their own steps towards self-employment right now!
In a recent report about the UK’s productivity, Shadow Minister for Business and Industry Bill Esterson said:
“Core skills, including how to work with other people, how to solve problems, how to communicate effectively, how to keep going when facing life’s challenges all are key to success. All are part of the make-up for a successful entrepreneur.”
We know what it takes to run a small business and we know that parents and carers have these skills in bucketloads.
You’re living on a budget, facing personal challenges and solving life's problems on the daily.
So if you’ve got a great business idea but you’re doubting whether you’ve got what it takes, allow us to give your startup spirit a little top up!
Why self-employment
Self-employment is never an “easy option”. (Anyone who thinks running a startup is easy probably hasn’t done it!) Starting a business of your own and using it to generate income is hard work for every entrepreneur, whatever their personal circumstances. But it has some key advantages which make it an attractive option for people juggling caring for children or a disabled relative.
As your own boss, you’ll be in complete control of how much time you spend working, and when you fit that time around your personal responsibilities.
Even with the latest flexible working legislation, the freedom you get when you become your own boss is difficult for most employers to match.
For anyone caring for young children or a disabled relative, self-employment can offer the chance to:
Bring in extra money without having to physically go out to work
Create something of your own, which you can be proud of
Turn skill or hobby into a source of income
Make a contribution to your community and to the economy
Gain valuable experience which looks great on your CV if you choose to return to employment in the future
Learn about business without having to go through a formal study programme
Smarta offers a practical, no-nonsense, jargon-free way to learn everything you need to know to set up and run a successful business.
Never patronising but always approachable, we believe in making business education accessible to all.
Easy to understand, applicable to your business, available when you are, and in bite-size lessons to fit into your busy schedule.
In this article, we’ve considered ways to support 2 main categories of caregivers:
1. Parents and guardians of young children
2. People caring for a severely disabled family member
Scroll down to read about the different types of support available and other helpful sources of information.
Getting financial backing
Turning your skills, hobby, or another idea into a viable business that actually makes money usually requires a bit of investment upfront. We’re in the business of helping anyone who wants to go self-employed to access the finance they need to make it happen, and the support needed to grow their confidence and capabilities as an entrepreneur.
Starting a business is a flexible and rewarding way to make a living. As well as loans of up to £25,000, weve got free tools, templates and resources to help you learn everything you need to know about starting a business: from exploring your business idea and thinking strategically, to budgeting and business finance.
We’ve also got a bunch of Success Stories we’d love you to read - tales of real people who’ve started their own business to fit around their personal situation:
Wheelchair user Louis and business partner Richard became social entrepreneurs
Andrew has Asperger’s Syndrome and started a chocolate business to help his kids
You aren’t classed as having caring responsibilities if you earn money from them. If you’re already self-employed, for example as a childminder or a private carer, and your business has been trading for less than five years, you can still apply for a Start Up Loan.
If your business is not yet trading, you may be able to apply for extra support, depending on which region of the country you live in.
Take a look at this list of support providers on the government’s website.
The support may include
Business advice
Training courses, like these from Smarta
Free workshops and discussion groups
Grants
Here are 2 examples of grants that are available to specific groups:
Business start-up grant for individuals in the Highland Council area of Scotland
A start-up grant of £1,000 is available to individuals in the Highland Council area who are looking to turn their business idea into reality.
Prince’s Trust Enterprise programme for young people
Finance of between £1000 to £5000 is available if you:
are aged 18 to 30
have a business idea
are unemployed or working less than 16 hours a week
Self-employment for parents and guardians
Support with childcare costs
If you’re hoping to start your own business but are currently looking after young children, there are a number of childcare options available which you may be able to take advantage of in order to gain some time in your week to work on your business.
And, you’re still developing your business idea, there are a number of free templates you can use to create your business plan, financial forecasts (estimates of what you can expect to earn) and budgets to help you ensure you’re able to bring in enough money each month.
Free childcare places
In most parts of the UK you can get free childcare places, although the arrangements are slightly different across England, Scotland, Wales and Northern Ireland.
“Free childcare” means that a certain number of hours of childcare or early years education (up to age 5) is paid for by the government. You do not need to be working to qualify and it is not connected to your income or expenditure.
In England, you may qualify for additional free childcare hours if you meet certain conditions. If you have a child who’s not yet started school, take a look at GOV.UK for information on:
You can also look at the government’s Childcare Choices website for further information, including a link to the government’s childcare calculator, which helps you work out what support might be available to you.
Solo parenting and self-employment
Lots of single parents successfully combine raising their family with running their own business. Gingerbread.org.uk have advice specifically for single parents looking to start self-employment, including:
Childcare options
Child maintenance payments
Tax credits
Self-employment and benefits
If you’re receiving Universal Credit to support your household income, you will fall into one of several ‘work-related activity groups’. You’ll have different responsibilities when it comes to work (including self-employment), depending on which group you fall into.
If you’re living with a partner you’ll need to nominate which of you is the main carer.
If you’re the main carer for a child, your work-related activity group depends on how old your child is. The same rules apply if you’ve adopted a child or are looking after the child for a friend or relative.
If the child is less than a year old, the Department for Work and Pensions (DWP) does not expect you to work. But, when the child is aged 3 or older, you’ll probably be in the “all work-related activity group”, which means you’re expected to either find a job or find a way to earn through self-employment.
If you're caring for a severely disabled person for at least 35 hours a week, you’ll be in the “no work-related activity group”. This means that you don’t have to look for work, but there’s no reason why you can’t start your own business if you feel able to fit it in around your caring responsibilities.
If you’re getting Carer’s Allowance, there could come a point where your self-employment earnings are too high for you to continue receiving the allowance.
The earnings threshold is £132 a week (in 2022/23). This includes money from employment and self-employment, for example, if you have a part-time job.
If your carer’s allowance stops because you are able to bring in £132 or more from self employment, but your caring responsibilities continue to be full time (35+ hours) the DWP will not expect you to look for a job.
Find out more about Tax and benefits for carers
If you’re currently in receipt of benefits, Citizens Advice have information about how to check which work-related activity group you’re in.
The information provided in this article was correct at the time of publication in March 2023.
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