self employment planning when off on the sick

ali-t

I am asking this on behalf of a friend rather than about myself. My friend is currently employed by the local authority and has been off long term sick. I think it has been 6-7 months now as she is now on half pay. She doesn't want to go back to her job but is planning to go self employed in a totally different field.

I have highlighted my concerns to her about planning a new business when she has been signed off sick. What are the legalities around this? Can the sickness pay be recalled if the local authority find out that she is planning to launch a new business? Could it go as far as prosecution?

Any tips gratefully received as I don't want my friend to take things too far and risk getting into bother. thanks

Horace

If she has no intention of returning to work then maybe she should hand in her notice?

There is nothing to stop her from going self employed and she can do this whilst she is off sick but realistically should she be doing it if she is currently unfit for work? Going self employed is not as easy as it sounds - you don't get sick pay for one thing nor holiday pay and you need to register with the HMRC for tax and NI purposes - however, I wish her well.

Rather than dragging out her sick pay at work best go self employed now and hand in her notice.

ali-t

Horace wrote: »

There is nothing to stop her from going self employed and she can do this whilst she is off sick but realistically should she be doing it if she is currently unfit for work? .

Is it not fraud? In this instance she is off with workplace stress rather than anything physical so being out the workplace removes the source of stress. The reason for not handing her notice in so far has been financial. the mortgage needs paid and she doesn't want to officially leave work until she has some new clients lined up in the new business to help pay the bills.

Horace

ali-t wrote: »

Is it not fraud? In this instance she is off with workplace stress rather than anything physical so being out the workplace removes the source of stress. The reason for not handing her notice in so far has been financial. the mortgage needs paid and she doesn't want to officially leave work until she has some new clients lined up in the new business to help pay the bills.

It is possible to have a full time job and have a self employed job at the same time - you just pay more tax and NI. Paid work for an employer: Class 4 NI and tax, self employed Class 2, Class 4 and tax then there are her insurances to consider.

If she is off with workplace stress then going back won't be an option but she shouldnt really accept their pay if she has no intention of ever returning far better to leave and let someone else have the job. If she leaves and is on low income then she may be able to get working tax credit which is about £50 a week - its not much but better than nothing but you can survive on it and pay your bills if you are careful.

I think she needs to be honest with her employer.

teabelly

Or the employer should just pull their finger out and fix the problem then she can return to work....

Has she followed grievance proceedings yet? She needs to get down the employment tribunal route and constructive dismissal if they refuse to make the workplace safe for her to return to. Typical employer though. I had exactly the same problem. I would have returned if they had dealt with the issues that were being raised but they refused so I stayed off.