RNID: For deaf and hard of hearing people.

About this factsheet

This factsheet is part of RNID's employment range. It is written for deaf and hard of hearing people who are thinking about becoming self-employed. We use the term deaf people to refer to deaf, deafened and hard of hearing people throughout this factsheet.

This factsheet looks at:

At the end of this factsheet we give you details of useful organisations that you can contact for further information.

What is self-employment?

'Working for yourself', 'being your own boss', 'an entrepreneur', 'running your own business', 'owning your own business' and 'freelancing' are all terms used to describe self-employment.

The government has drawn up specific guidelines to describe what being self-employed means. It is particularly important to have a clear meaning if you are claiming benefits and for tax purposes. For example, the Inland Revenue asks:

  • Do you provide your own tools?
  • Can you turn work down or accept work as you please?
  • Are you paid by the job, rather than a regular wage?
  • Can you sub-contract; that is, give work to other companies or people?

Why choose self-employment?

There are lots of reasons why deaf people choose to become self-employed. The Prince's Trust is a voluntary organisation that supports people who want to set up in business. They have worked with a wide range of deaf people who have created plastering, media, accountancy, courier, training, landscape gardening, theatre and hairdressing businesses.

Some people are attracted to self-employment because it gives them the chance to 'be their own boss'. It also offers flexibility. Others find that their talents lend themselves more readily to working for themselves, for example as a gardener, plumber or artist.

Some people have had to give up work because of their deafness or may have been unable to find work because of it. If you have been discriminated in the workplace you might find the idea of self-employment very attractive. Running a business can not only boost your self-confidence, it can also develop your skills and provide you with financial independence.

Whatever the reason, being self-employed is never the easy option. It can be a 24 hour, seven days a week, 365 days a year commitment. You will need a skill, talent or great idea, a never-ending supply of enthusiasm and commitment, and a business plan. You have to want to sleep, eat and live the business!

Creating a business plan

It is essential to plan your business idea on paper: this is called a business plan. A business plan can show you and your investors (people who are prepared to back your idea with money) that your business idea will work. It is an essential tool for raising money to help get your business off the ground.

There are lots of organisations that can help you create a business plan. Try contacting:

  • local enterprise agencies
  • Business Links
  • high street banks
  • The Prince's Trust.

For contact details see the section "Useful organisations" later in this factsheet.

What goes in a business plan?

Every business plan should include:

  • a description of what your business will do
  • market research showing, for example, why there is a need for your business
  • marketing details showing how you will let people know about your business and the services it offers
  • financial information, such as how you will buy the equipment you need to get up and running.

A business plan might also include:

  • your suppliers, including the companies that will sell you computers or building materials to help you run your business
  • transport arrangements, such as how you will visit your customers if they are located all over the country
  • competition, including other businesses that already offer a similar service to the one you are planning
  • where you are going to run your business from; that is, your business premises
  • equipment you will need to run your business, for example tools
  • what staff you will need to employ
  • legal issues
  • insurance, with details of how much will it cost to insure your business.

Planning your marketing strategy

You will need to have a strong marketing plan for your business. Deaf entrepreneurs may face extra challenges in this area. For example, most businesses advertise their telephone number in the "Yellow Pages" but a business run by a deaf person may only have a textphone number. If a hearing customer is given the choice between dialling a telephone or textphone number they are likely to choose the telephone.

You will need to think of creative marketing and communication techniques, for example:

  • employ a telephone answering company.
  • get a videophone, which is especially useful for communicating with customers whose first or preferred language is British Sign Language
  • use email and SMS
  • produce a marketing video as well as more traditional marketing materials.

You might be able to use your deafness as a marketing tool to attract deaf customers. Your deafness might also give people confidence in your business, particularly if you are delivering a service to do with disability issues.

Raising money

You are probably going to need to raise some money in order to start your business. Try contacting:

  • your local bank
  • enterprise agencies
  • The Prince's Trust, as if you are unemployed and under 31 years old the Prince's Trust can offer low interest loans of up to £5000 and grants of up to £1500 in certain circumstances
  • your local council, as you may be setting up your business in a regeneration area where extra money is available to help you
  • private investors, often known as business angels.

Sole trader, partnership or limited company?

Once you have made the decision to become self-employed you will also need to decide whether you want to set up as a sole trader, partnership or limited company.

Sole trader

If you own your business on your own then you are a sole trader. You are responsible for any debts your business runs up and your business will stop if you become ill or take a holiday unless you take on any staff.

However, this is the simplest way to start up your own business because it involves only a few formalities.

Partnership

A partnership is where two or more people set up in business together. You will need a formal partnership agreement.

Limited company

This is the most expensive and complicated way to start a business. But if your business becomes a limited company it will mean you are not personally responsible for any business debts.

For tax purposes you become an employee of the business.

Getting support and advice

It is essential that you get the right support to help you set up and run your business. Try contacting:

  • organisations that lend money (see the "Raising money" section above)
  • fellow entrepreneurs, including the Disabled Entrepreneurs Network set up by the Association of Disabled Professionals
  • your local Chamber of Commerce
  • your local Federation of Small Businesses
  • The Prince's Trust DeafBiz Network. This online support network helps deaf entrepreneurs to share experiences, ideas and information, including putting you in touch with an E-business mentor.

For contact details see the "Useful organisations" section later in this factsheet.

Access to Work

You should take advantage of every opportunity to help your business compete on a level playing field with businesses run by hearing people. Your business plan should include a list of any potential costs that are related to your deafness. It is possible that these costs could be paid for by a Government funded programme called Access to Work.

What is Access to Work?

Access to Work has a number of functions:

  • It supports deaf and disabled people to enable them to overcome challenges that stop them from working.
  • It enables deaf and disabled people to compete on equal terms in the employment market and in the workplace.
  • It aims to encourage employers to recruit and retain disabled staff.
  • It pays all or part of any additional cost this involves.

It does this by providing advice, assessments and funding for:

  • communication support for meetings, interviews, training courses and supervision
  • special equipment
  • adaptations to premises, equipment or working environments
  • help with travel to, or in, work.

It is important to remember that Access to Work will not pay for any business related expenses, only 'disability related needs'. However, it is sometimes possible to get communication support through Access to Work if you are having an interview with a potential funder for your business.

You should think carefully about all the difficulties you may have running your business because you are deaf, and any solutions, when applying for Access to Work.

Who can get Access to Work?

To get help from Access to Work, you must:

  • be disabled. This covers people who are disabled according to the definitions of the Disability Discrimination Act and people who are affected by their disability only at work.
  • need support at job interviews, have a job to start, or be in a job - this includes people who are self-employed
  • need support to progress in, or accept work
  • live, and have a job in, the UK
  • not be getting Incapacity Benefit, sickness benefit, or Severe Disability Allowance. People who are getting these can stop claiming when they start working and are eligible for Access to Work instead.

As a self-employed person you will also need 'proof of business viability'. This is usually a business plan approved by a recognised agency, for example your local Enterprise Agency.

Application process for Access to Work

To apply for support under Access to Work, you should get in touch with a disability employment adviser.

The disability employment adviser will give you details of your local Access to Work Business Centre. Here, an Access to Work adviser can assess and agree what you need. This can be done over the telephone or textphone. If you have more complex needs your Access to Work adviser may need to visit your workplace.

For further information, contact your local Jobcentre or Jobcentre Plus office. Visit the Jobcentre Plus website (external link, opens new browser window) for details of your nearest office.

How self-employment affects benefits

If you are thinking about starting your own business you need to be aware that it could affect any benefits you are getting. Contact one of the advice agencies listed below for more detailed information and a 'better-off calculation'. The RNID Information Line can also send you our range of benefits factsheets.

Better-off calculations

You can get a 'better off calculation' to help you understand how your benefits will be affected if you become self-employed. This can help you decide whether to work part-time or full time. For more details contact:

See the "Useful organisations" later in this factsheet for full contact details.

Can I still get some benefits if I am self-employed?

You may be able to still get some benefits when you are self-employed. What you get will depend on whether you are running your own business part-time or full-time. These include:

  • Council Tax Benefit
  • Disability Living Allowance
  • Disabled Person's Tax Credit
  • Housing Benefit
  • Incapacity Benefit
  • Income Support Industrial Injuries Benefits
  • National Insurance credits
  • Severe Disablement Allowance
  • Working Families' Tax Credit.

To help you claim all the benefits you may be entitled to it is important to keep accurate financial records for your business. This will help you show exactly when your business is providing you with an income.

This is different to the 'start-up phase' for your business. This is when you are not yet getting any income from your business but are busy carrying out, for example, your market research. If you receive money to start your business, this will usually be spent on buying things such as office furniture or equipment and it is not counted as income. You must keep a record of this so that you can prove that you are entitled to claim benefits.

You must register with the Inland Revenue within three months of starting your business otherwise you could be liable for a penalty of £100. When you register you will receive a pack called "Starting up in business" that gives details of everything you need to know about tax and national insurance.

If you are claiming tax credits you will also need a cashflow forecast. This will be used to work out your average weekly income. After you have been trading for a year you should be able to work out your income more accurately.

Claiming one-off payments or bonuses

If you are thinking about becoming self-employed on a full-time basis find out if you can claim any one-off payments or bonuses when you become self-employed. This depends on what benefits you are claiming and how long you have been getting them. You may be able to get:

  • a 'back to work' bonus of £100
  • a 'child maintenance' bonus of up to £1,000.

Extended benefits payments once you are working

Find out if you will be able to carry on getting any benefits for a set period of time once you have become self-employed. These are known as extended benefits:

  • If you are a lone parent you may be able to get two weeks of extra Income Support.
  • Your housing costs may be paid for four weeks after you come off some benefits.
  • Your Council Tax Benefit may also be paid for four weeks.

Reclaiming benefit if your job stops

Many people worry that if they become self-employed and the business does not work out they may not be able to re-claim their benefits. If you are thinking about becoming self-employed find out if you will be able to reclaim any of the benefits you are currently on if your new business fails.

A number of schemes provide protection if you need to reclaim benefits including:

  • the fifty-two week linking rule (welfare to work)
  • the two-year protection period
  • help with housing costs
  • pilot schemes for people claiming benefits. In some parts of the country the rules for claiming benefits are different. These may be called JobCentre Plus or ONE pilot areas.

The Disability Discrimination Act (DDA) 1995

What is the DDA?

The DDA aims to stop discrimination against disabled people as employees, pupils, students or customers who buy goods, or use facilities or services. It aims to give disabled people equal rights and access to employment opportunities, education, and goods, facilities and services.

Who is covered by the DDA?

The DDA gives a definition of disability. If someone fits that definition they are covered by the DDA. The DDA defines disability as "a physical or mental impairment which has a substantial and long term adverse effect on [the person's] ability to carry out normal day to day activities".

Guidance for the DDA says that an "inability to hold a conversation with someone talking in a normal voice" or an "inability to hear and understand another person speaking clearly over the voice telephone" counts as a substantial adverse effect under the DDA. 'Substantial' means "more than minor or trivial". This means that deaf people are covered by the DDA unless they have a very small hearing loss.

The DDA also says that when the effect of your deafness is being looked at, the effect of background noise should be taken into account. Any steps taken to treat or correct your deafness are ignored for the purposes of the DDA. Importantly, this means that even if you use a hearing aid, your hearing without the hearing aid is what counts.

How does the DDA apply to self-employed people?

As a buyer of goods and services

It is against the law for a service provider to treat a deaf customer less favourably than they would treat a hearing customer, or a customer with a different disability. For example, it would be against the law for a service provider to treat a deaf person less favourably by:

  • refusing, or deliberately not providing, a service, including selling you goods; for example if your bank manager refuses to meet you to discuss a business loan purely because you are deaf
  • not making a reasonable adjustment to a service; for example if your stationary supplier refuses to accept orders via RNID Typetalk calls
  • offering a service of a lower standard or in a worse manner; for example if your supplier sells the same goods at the same price to both you and a hearing customer, but the goods you receive are of a poorer quality. This can also cover treating you in a rude or off-hand way.
  • offering a service on less favourable terms; for example if your supplier demands you pay your bills earlier than normal.
Working under contract for another company

Self-employed people who carry out work for another person or company under a contract can be covered by the DDA. For example, if a self-employed IT consultant carries out maintenance on a company's IT network that company cannot unlawfully discriminate against the consultant. The discrimination could be refusing to allow the consultant to start or continue to work, paying the consultant less, or harassing the consultant. In particular, not making a 'reasonable adjustment' to help the consultant carry out the work may be discrimination.

Taking legal action

If you have been discriminated against, you may be able to take legal action under the DDA in some situations. You have six months to start legal proceedings. Time runs from the date of the act of discrimination. See our factsheets:

Useful organisations

Benefits Enquiry Line (BEL)

BEL is a free advice line run by the Department for Work and Pensions for people who are sick or disabled and their carers or representatives.

Telephone: 0800 882200
Textphone: 0800 243355.
(Monday to Friday, 8.30am to 6.30pm. Saturday, 9am to 1pm.)

BEL Northern Ireland

Telephone: 0800 220674
Textphone: 0800 243787
(Monday to Friday, 9am to 5pm.)

Business Link

Business Link is a national business advice service.

Telephone: 0845 6000 787
Search the Business Link website (external link, opens new browser window) for your nearest Business Link.

Chamber of Commerce

Chambers are local, independent organisations that can help local businesses. Find your nearest chamber by searching the Chamber of Commerce website (external link, opens new browser window).

Citizens Advice Bureau (CAB)

Your local CAB will give free advice. See your phonebook for your nearest CAB or you can do an online search at the Citizens Advice Bureau website (external link, opens new browser window).

Federation of Small Businesses

This gives advice to the small business sector.

Federation of Small Businesses, Sir Frank Whittle Way, Blackpool Business Park, Blackpool, Lancashire FY4 2FE
Telephone: 01253 336000
Fax: 01253 348046
Website: Federation of Small Businesses (external link, opens new browser window)

The Inland Revenue - Business Support Teams

Gives tax and national insurance advice to individuals and businesses.

The Inland Revenue, Business Support Teams, 286 Euston Road, London NW1 3DP
Telephone: 020 7667 4827
Fax: 020 7667 4825.
Email: BSTLondon@ir.gsi.gov.uk
Website: The Inland Revenue - Business Support Teams (external link, opens new browser window)

Inland Revenue - Newly Self-Employed Helpline

Telephone: 08459 154515
Textphone: 08459 153 296
Website: Inland Revenue - Newly Self-Employed Helpline (external link, opens new browser window)

Jobcentre Plus

Contact Jobcentre Plus to speak to a disability employment adviser or Access to Work advisers. Visit the Jobcentre Plus website (external link, opens new browser window) for details of your nearest office.

National Federation of Enterprise Agencies

Free independent advice if you are starting up or developing a business.

National Federation of Enterprise Agencies, Trinity Gardens, 9-11 Bromham Road, Bedford MK40 2UQ
Telephone: 01234 354055
Fax: 01234 354055
Email: enquiries@nfea.com
Website: National Federation of Enterprise Agencies (external link, opens new browser window)

New deal for the disabled job brokers

Job brokers are organisations that can support sick and disabled people into work through the New deal for disabled people scheme. Job brokers operate throughout England, Scotland and Wales.

Search the New deal website (external link, opens new browser window) to find job brokers in your area.

The Prince's Trust

If you are between 18 and 30 and have a good idea for a business, but can't get funding, contact the Prince's Trust. They can help by offering low interest loans, grants and mentors.

The Prince's Trust, 18 Park Square East, London NW1 4LH
Telephone: 0800 842842
Textphone: 020 7543 1374
Fax: 020 7543 1200.
Email: info@princes-trust.org.uk
Website: The Prince's Trust website (external link, opens new browser window)

Small Business Service

Provides practical business information and advice to UK small firms.

Small Business Service, Kingsgate House, 66-74 Victoria Street, London SW1E 6SW
Telephone: 0845 600 9006
Textphone: 0845 606 2666
Fax: 0114 259 7330
Website: Small Business Service (external link, opens new browser window)

Useful websites

In addition to the websites listed above see also:

Further information from RNID

If you want to find out more about some of the subjects covered in this factsheet you may wish to get RNID's information on benefits, the Disability Discrimination Act and employment.

The RNID Information Line offers a wide range of information on many aspects of deafness and hearing loss. You can contact us for printed copies of this factsheet and the full range of RNID information factsheets and leaflets.