What support can you get when you’re self-employed?
Working for yourself doesn’t automatically stop you getting benefits or other support. But a quiet month doesn’t automatically mean you’re entitled to anything either.
A useful place to start is a check based on your household, income, savings and circumstances.
Universal Credit can include self-employed people
If you claim Universal Credit, you normally report your self-employed income and allowable business expenses for each monthly assessment period (the month your payment is based on). These rules aren’t the same as the annual Self Assessment calculation.
If you’re treated as gainfully self-employed and the conditions apply, a minimum income floor may be used. That means your award can be based on assumed earnings, rather than the lower amount you actually earned. If you qualify for a start-up period, it can last up to twelve months, and the floor doesn’t apply during it. It isn’t an automatic twelve-month exemption for every new business. DWP: self-employment and Universal Credit.
To check the full picture, use a benefits calculator or ask a benefits adviser. Other household income and capital, such as savings, can affect what you’re entitled to. Different benefits can also affect each other. GOV.UK: benefits calculators.
If illness stops you working
Being self-employed doesn’t, on its own, give you Statutory Sick Pay. A separate job may give you an entitlement under the employment rules. Depending on your circumstances and your National Insurance contribution record, New Style Employment and Support Allowance or Universal Credit may be relevant. GOV.UK: Statutory Sick Pay, New Style ESA.
Already have insurance? Check it too, including its waiting period and the conditions for claiming. State support and insurance are different things. Paying tax doesn’t mean you can assume you’ll get either.
Family support and tax allowances
If you’re self-employed and you qualify, Maternity Allowance and Tax-Free Childcare can be available to you. Check the detailed conditions, and how they interact with other support. GOV.UK: Maternity Allowance, Tax-Free Childcare.
Marriage Allowance isn’t a benefit. A lower-earning spouse or civil partner who qualifies can transfer £1,260 of their Personal Allowance (their tax-free income), reducing the other partner’s tax by up to £252 a year. Income conditions apply. The partner making the transfer can end up paying more tax themselves, so compare the result for the couple. Scotland has its own rules about which tax rates qualify. HMRC: Marriage Allowance.
If the immediate problem is a bill
If you can’t pay HMRC, contact them about your options. If essential household bills or debts are becoming unmanageable, get free debt guidance early. A payment plan or benefit claim should be assessed on your actual situation, not a general promise you’ve seen online. HMRC: payment difficulties, MoneyHelper: debt advice.
Have your recent income records, costs and household information ready. They make it easier for an adviser or official service to give you a useful answer.
