Contract worker facing 1 months lay off for operation - sick pay?

insectseige

I'm working as an agency Radiotherapist through an umbrella company currently on a 2 months plus contract.
I have an operation scheduled for early next month which will mean a one month recovery time unable to work.
My current contract was due to finish just before the operation but I was offered an extension which I've had to turn down.
My question is about sick pay.
I have to end my contract as I'll no longer be able to work, it's not like I can just phone in sick on the day of the op as the op date is already known to me.
I am lucky in that my father in law can lend my wife and I some cash to get us through the month but can I also claim statutory sick pay for this period?
As far as I understand the Umbrella company would cover me for any periods of sickness over 3 days but because of the nature of this sickness I have to end my contract so won't actually be working for them at the time.
So the operation will render me unable to work so I've had to end my contract as I'll be unable to work.
Any help would be appreciated.

sangie595

You have no work. So you have no employer. So no, you cannot claim SSP. You may be able to claim ESA. But you'd be better asking about it on the benefits board.

PasturesNew

As a contractor working under an umbrella, you put a sick pay claim into the umbrella, who pay you from your own money. They do not invoice for the times you are not working.

That's how contracting works. You're self-employed, with the umbrella acting as a "faux employer" to produce "employee-like paperwork" for you. But, ultimately, if you are paid sick pay, it comes from your money - so you don't get any more, or less, than if you'd not claimed sick pay.

In short: there's no point really.

insectseige

I was self employed - as a Ltd company with policies for just such an occurrence - then IR35 happened. Now I'm 'employed' but after travel and accommodation on a poor rate - now I can't even afford to have an operation. Thank god for my father in law's loan.
I'm out after this - just not worth it.

getmore4less

Potential for a NI saving.

getmore4less

A thought why did you change from Ltd to an umbrella

You would have kept more control if you had just used the existing company to act as the umbrella.

prowla

PasturesNew wrote: »

As a contractor working under an umbrella, you put a sick pay claim into the umbrella, who pay you from your own money. They do not invoice for the times you are not working.

That's how contracting works. You're self-employed, with the umbrella acting as a "faux employer" to produce "employee-like paperwork" for you. But, ultimately, if you are paid sick pay, it comes from your money - so you don't get any more, or less, than if you'd not claimed sick pay.

In short: there's no point really.

Working via a limited company or an umbrella company is not self-employed.


But the funds available are only what your work has generated, so if there are funds then you can draw against them, but if not then no.

unforeseen

Probably when the law changed and PSCs decided IR35 status. Just about every NHS Trust decided all contractors fell inside IR35 (even though they were supposed to assess each role separately).

I was contracting for the NHS when that happened and stayed Ltd Co. The big problem with doing that is that you will be taxed at BR because they pay your tax without the benefit of having your tax code.(it hurt but I had a lovely rebate at the end of the tax year). If you are working umbrella then they let the umbrella do the tax so they can use your correct tax code.

getmore4less

An umbrella is just a LTD company employing people any reason your LTD cant operate in the same way you become an umbrella

might not be cheaper than the margin though as you don't get economy of scale.

unforeseen

The thing stopping you is that they (PSCs especially) will only recognise established umbrellas. Agencies are the same.

https://www.accountingweb.co.uk/any-answers/how-to-set-up-umbrella-company gives an insight into the perils and pitfalls of trying to set up your own umbrella. It's not just a case of saying 'my limited company is really an umbrella company'

Sncjw

If you have turned down the Chance of work I don!!!8217;t see how you would get sick pay as you wouldn!!!8217;t have been working anyways