Self-employed sickness absence

Phillip_Deacon

Hi everyone

I'm employed so if I become unable to work because of illness, I still get paid.

But what if I'm self-employed. If I can't work due to illness I won't be able to earn, and my income will stop.

What are my options to address this problem, and what are the pros and cons of each? Your advice and ideas gratefully received.

Thanks

Phillip

PlutoinCapricorn

Self employed people should be charging a higher rate than an employee doing the same job would get, to cover sickness and times where there is little work.

Insurance may be possible too. A lot depends on the kind of work that you do. Self employed people have the option of sending in a substitute, so an arrangement with a colleague might be possible.

Personally speaking, being a home based sole trader who works online has meant far less stress, and that even if I did not feel up to going into an office I can still work in my own time and my own way.

When employees know that they can take a day off work here and there and still get paid, there is temptation to not go in if they feel just a little under the weather. Self employed people seem to be healthier!

ILW

Self employment really does tell you what you are truly worth. Can come as a bit of a shock.

McKneff

If you have paid the correct NI contributions and meet the criteria then you can claim a beneft.

Notmyrealname

McKneff wrote: »

If you have paid the correct NI contributions and meet the criteria then you can claim a beneft.

What benefit would that be? There is only ESA but you would have to have ended the business to claim that. You could only claim SSP if you set up as a Ltd Company and were an employee of that company however you'd have to claim SSP from yourself and then the Ltd Company claim it back from the govt.

InsideInsurance

This is one of the reasons that contractors get paid more money than employees.

The most common solution is to buy Permanent Health Insurance (PHI but also known as Income Protection - though ASU can also be badged up as Income Protection) as this will provide typically up to 60% of your gross salary up until your stated retirement age or until you are well enough to work again.

McKneff

When my husband was self employed he was off work for about 12 weeks and he had paid his NI ( I think class 2 and 4) he was able to claim SSP or IB, cant remember which (in those days) approx 10 years ago) things have maybe changed.

So apart from State Pension what do self employed people pay 2 lots of stamp for.