Topic: Self-employment

Self-employed and not eligible for SSP

What other options do I have available to me?

If you are not eligible for Statutory Sick Pay (SSP) – for example, if you are self-employed or earning below the Lower Earnings Limit of £118 per week – and you have COVID-19 or are advised to self-isolate, you can now more easily make a claim for Universal Credit or New Style Employment and Support Allowance.

If you are self-employed and receiving Universal Credit, and you have COVID-19 or are advised to self-isolate, the requirements of the Minimum Income Floor will be temporarily relaxed. This change took effect on 13 March and will last for the duration of the outbreak, to ensure that self-employed Universal Credit claimants will receive support.

If you need to claim Universal Credit but have COVID-19 or are self-isolating, you will now be able to claim and to access advance payments upfront without needing to attend a Jobcentre Plus appointment.

If you are eligible for New Style Employment and Support Allowance, it will now be payable from day one of sickness, rather than day eight, if you have COVID-19 or are advised to self-isolate.

If you think you may need financial support from your Local Authority in England, you may be entitled to support from the £500 million Hardship Fund. Most of this funding will be used to provide more Council Tax relief, either through existing Local Council Tax Support schemes, or through similar measures.

How can we help?

For more information, please contact S4 Financial on 01276 34932 or email hello@s4financial.co.uk – we look forward to hearing from you.

IR35

Reform deferred by a year

If you currently work as a contractor, are considering becoming a contractor, or own a business that hires contractors, IR35 is something that you should be familiar with.

Although the Chancellor, Rishi Sunak, previously announced that IR35 reform in the private sector would be introduced as planned on 6 April 2020, the Government has pushed this back amid the ongoing coronavirus pandemic.

Steve Barclay, Chief Secretary to the Treasury, announced on 17 March that reform will be deferred by a year – but made it clear it isn’t being cancelled. He said: ‘This is a deferral in response to the ongoing spread of COVID-19 to help businesses and individuals.’ It comes after a House of Lords finance bill sub-committee said that adding another burden on business would be ‘perverse’.

Private sector IR35 reform means that contractors and freelancers will no longer be responsible for working out their tax status. Instead, it’ll be down to the clients they work for (although smaller businesses are exempt from the change).

As businesses and the self-employed now face an uncertain few months, the deferral should at least give them more time to prepare for reform. Given the economic challenges that lie ahead of the UK, now certainly would not have been the right time to roll out needless tax changes that could endanger hundreds of thousands of contractors’ livelihoods.

How can we help?

For more information, please contact S4 Financial on 01276 34932 or email hello@s4financial.co.uk – we look forward to hearing from you.

Second self-assessment payment deferment

Strengthening the safety net for those who work for themselves

The Chancellor, Rishi Sunak, said he will ‘strengthen the safety net for those who work for themselves’ with a package of measures to support the self-employed and freelancers, offering improved benefits and tax deferrals.

Self-employment Income Support Scheme

Financial support for those impacted by coronavirus

Chancellor of the Exchequer Rishi Sunak unveiled unprecedented government aid for the self-employed. There are around five million people who are self-employed and freelance across the UK, and many will be relieved to hear that financial support is on the way to help those impacted by coronavirus.