Can I Get Sick Pay if I'm Self Employed?
09/10/2020
When you're self-employed and fall ill, you might have some genuine concerns about how you'll be able to support yourself.
The good news is, you may be able to claim self-employed sick pay depends on the structure of your business.
Furthermore, even if you鈥檙e not entitled to Statutory Sick Pay (SSP), there are other sickness benefits that you could be entitled to.
Can I Claim SSP if I'm Self-Employed?
In most instances, self-employed people aren't able to claim many of the benefits available to employees, including statutory sick pay (SSP).
SSP is a payment available to employees when they鈥檙e too sick to work for an extended period of time.
Whether you're able to claim SSP as a self-employed worker will depend on the legal structure of your business.
If you鈥檙e a director of a limited company, then technically you鈥檙e an employee of your business. This means you would be entitled to SSP at the same rates as your employees.
However, if you operate as a sole trader or in a partnership, you won鈥檛 be able to claim SSP. Don't worry, there are other self-employed sickness benefits that you might be able to claim.
How Do I Claim SSP as a Limited Company Director?
As we've mentioned already, a limited company director is an employee, so they can claim SSP through their business.
The usual SSP rate applies. In 2020-21 the SSP rate is 拢95.85 a week for up to 28 weeks.
If you鈥檙e unable to work due to illness as a limited company director, you need to follow the SSP rules. These rules mean you have to have been off work for four or more days in a row, including non-working days. Days when you鈥檙e meant to be working but are off sick are known as 鈥榪ualifying days鈥�.
The first three days are known as 鈥榳aiting days鈥�. You鈥檙e entitled to SSP from the fourth day you鈥檙e unable to work.
You need to earn an average salary of at least 拢118 a week to qualify for SSP.
What Sickness Benefits Are Available for Self-Employed Sole Traders and Partners?
Whilst sole traders and partners can鈥檛 claim SSP, there are still other benefits they might be entitled to.
One that could cover you if you were unwell would be the Employment and Support Allowance (ESA). You might be entitled to weekly ESA payments if you have a long-term illness or disability meaning you鈥檙e unable to work.
To qualify for this you will need to be:
- 16 or over
- under the State Pension age
- living in England, Wales or Scotland
- not claiming Job Seekers鈥� Allowance (JSA)
- paying enough National Insurance contributions
While there are different types of ESA that people can claim for, most will claim 鈥榥ew style鈥� ESA. For this, you need to have been self-employed for the last two to three years and have two tax years of National Insurance contributions.
You can apply for 鈥榥ew style鈥� ESA online at gov.uk or over the phone. When you apply you'll need:
- proof that you have limited capability for work (fit note)
- National Insurance number
- bank or building society account number and sort code
- GP鈥檚 details
- income details if you鈥檙e working
How Much ESA Can I Claim?
If your claim is accepted you should expect your first payments a few weeks later. These will usually be backdated by up to three months, to cover the time you weren鈥檛 able to work.
When you first claim for 鈥榥ew style鈥� ESA or contribution-based ESA, you鈥檒l usually get:
- 拢74.35 each week (aged 25 or over)
- 拢58.90 each week (aged under 25)
After three months, you'll be assessed by the DWP. Depending on your illness, you鈥檒l be placed on one of the following rates:
- up to 拢73.10 a week (if you鈥檙e able to go back to work)
- up to 拢111.65 a week (if you鈥檙e not able to go back to work)
SSP and Coronavirus
The government has made changes to SSP for employees to reflect the ongoing coronavirus outbreak.
The changes mean that employees who are ill or are self-isolating from COVID-19 are entitled to SSP from the first day of being off work, rather than day four.
If you鈥檙e not eligible for SSP but you鈥檙e ill because of coronavirus, or the virus has affected your ability to work in other ways, you might be eligible for different government support 鈥� such as the Self鈥�Employment Income Support Scheme. .
Hopefully, you won't be ill any time soon, but if you are we hope you're now armed with the info you need to claim the sick benefits you're entitled to.
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