SELF-EMPLOYED people can become unemployed if their business has to close down. It may also be the case, though you continue to be self-employed the amount of work you are getting has reduced so much, that it no longer provides you with a sufficient income.
If you find yourself unemployed or you are getting less work than before you may qualify for a jobseeker’s payment. You do not need to de-register as self-employed to get a payment. However you must meet the conditions that apply to jobseeker’s payments.
If you do not qualify for a social welfare payment you may be eligible to pay voluntary contributions. You should speak to your local Citizens Information Centre about this.
What are the conditions that apply to jobseekers payments?
To qualify for a jobseeker’s payment, you must be 18 years or over and under 66 years of age.
You must meet certain PRSI conditions to get Jobseeker’s Benefit (JB). You must pass a means test and habitual residency conditions for Jobseeker’s Allowance (JA).
For JA and JB, you must also be:
• Unemployed (you must be fully unemployed or unemployed for at least 4 days out of 7)
• Capable of work
• Available for work
• Genuinely seeking work
While you are getting a jobseeker’s payment, you must attend meetings and take part in appropriate employment schemes, training, or work experience if requested by the Department of Social Protection (DSP).
You can be refused a jobseeker’s payment if you do not meet all the rules that apply to the payment. You can be disqualified from a payment for a period of time in certain circumstances. You can also have your payment reduced (and subsequently stopped altogether for a period of time) if you do not attend meetings or participate in appropriate employment schemes, training or work experience.
What is Jobseeker’s Benefit (Self-Employed)?
Jobseeker’s Benefit (Self-Employed) (JBSE) is a weekly payment from the Department of Social Protection (DSP) to people who lose their self-employment.
To qualify for Jobseeker’s Benefit (Self-Employed) you need:
• At least 156 weeks of Class S contributions or at least 104 weeks of paid Class A or H PRSI since first starting work
• 52 weeks of Class S contributions paid in the relevant tax year. The relevant tax year is the second-last complete tax year before the year in which your claim is made. So, for claims made in 2024, the relevant tax year is 2022.
To get Jobseeker’s Benefit (Self-Employed) you must stop all self-employment activity. However, you can work as an employee for up to 3 days each week and continue to get Jobseeker’s Benefit (Self-Employed).
If you don’t qualify for Jobseeker’s Benefit (Self-Employed) you may qualify for Jobseeker’s Allowance.
What is Jobseeker’s Allowance?
Jobseeker’s Allowance (JA) is a weekly payment from DSP to jobseeker’s. To get Jobseeker’s Allowance you must be habitually resident and pass a means test. If you are self-employed, you may be entitled to Jobseeker’s Allowance depending on your earnings from your business. You do not need to close your business or stop working as self-employed for you to get Jobseeker’s Allowance and you don’t have to be unemployed for at least four out of seven days, as for Jobseeker’s Benefit. You will get Jobseeker’s Allowance if your income is below a certain level.
How is income from self-employment treated in the means test?
The earnings from your business will be assessed in the means test for Jobseeker’s Allowance. The assessment must reflect the income you may reasonably be expected to get from your business over the next 12 months. Income for the last 12 months will be taken as a guide but allowing for any factors which it is known will vary. You should be prepared to discuss these factors when you are assessed for Jobseeker’s Allowance.
Earnings are assessed as gross income less work-related expenses over 12 months. Your expected annual earnings from self-employment is divided by 52 to find your weekly means from self-employment. Any ‘drawings’ you take from the business is not an allowable expense. If your ‘drawings’ from the business are greater than the level of income calculated, the ‘drawings’ are assessed as cash income. There is no exhaustive list of all business expenses allowed because expenses vary with the nature and extent of the self-employment. However the following are the main allowable expenses in most cases:
• Materials (supplies costs)
• Motor running costs (portion applicable to business)
• Depreciation of machinery or equipment
• Insurance relating to the business
• Telephone (portion applicable to business)
• Lighting and heating (for business and not domestic use)
• Advertising
• Bank charges
• Stationery
• Van leasing
• Any other costs associated with running the business (household running costs are not allowed as deductions against business profit)
To prove the level of income from your business you must give your receipts and payments (documentation showing money coming in and out of your business) or audited accounts to the person dealing with your application in your Intreo Centre or Social Welfare Branch Office.
Usually, you will be asked for your receipts and payments or audited accounts for the current and previous year. For example, if you apply for Jobseeker’s Allowance in October 2024 you will be asked for your receipts and payments from January to October 2024 and for 2023. However, in certain cases you may be required to show audited accounts for the last two or more years.
How do I apply for a Jobseekers payment?
You can apply for Jobseekers Benefit or Jobseeker’s Allowance online at MyWelfare.ie.
When you log in, you will be asked for some personal and financial information, as well as details of your employment, training or education history. You will also be asked to upload or post any supporting documents that are needed. You must have a basic MyGovID account to apply online.
Alternatively, you can apply for JB or JA using the application form UP1, which you can get from your local Intreo or Social Welfare office
You may qualify for Supplementary Welfare Allowance while you are waiting to be assessed for a jobseeker’s payment or if you don’t qualify for a jobseeker’s payment.
What is Supplementary Welfare Allowance?
Supplementary Welfare Allowance provides a basic weekly allowance to eligible people who have little or no income. If your weekly income is below the Supplementary Welfare Allowance rate for your family size, a payment may be made to bring your income up to the appropriate Supplementary Welfare Allowance rate.
You cannot get Supplementary Welfare Allowance if you are working more than 30 hours per week. If you have claimed a jobseeker’s payment but it has not yet been paid and you have no other income, you may qualify for Supplementary Welfare Allowance while you are awaiting payment. You can speak to your local Citizens Information Centre, and they will explain the means test and give you an application form
Are there other benefits available?
If your income is below a certain amount you may get a medical card or a GP visit card.
You may get help with paying your rent. If you are in local authority housing, you should contact your local authority and ask for a review of your rent because of the reduction in your income.
You may get help with the cost of uniforms and footwear for children attending school.
