Sick Pay for Self-Employed Tradespeople: What Are You Entitled To?

One disadvantage of taking control of your career and working for yourself is that you are not entitled to statutory sick pay from your employer if you are unable to work due to illness or accident.

If self-employed professionals are unable to work, they will have to rely on their savings and/or take out suitable insurance, or they may have to seek other government benefits. Claiming for self-employed sick pay is not possible.

Getting ill pay as a self-employed tradesperson is more difficult than getting sick pay from a contract job. There are, however, workarounds.

This is why we have created this article, to help you, as a self-employed tradesperson, to know what you are entitled to and how to get this/apply for it.

So, if you are sick of constantly worrying about being sick and can't afford to stay off, then we have created this article to help you know all about it.

What Is Sick Pay?

Everyone, unfortunately, gets sick. Workers may be unable to work due to colds, the flu, or other medical difficulties. Some employers provide sick pay to their employees in certain conditions. What exactly is sick pay?

Employees receive sick pay, known as Statutory Sick Pay (SSP), when they're unable to work due to illness or injury. It's paid by your employer at £123.25 a week, or 80% of your average weekly earnings if that's lower, for up to 28 weeks. An employer can choose to pay more under its own company sick pay scheme, but never less than the statutory rate.

To qualify for SSP, you must:

• Be classed as an employee.
• Have done some work for that employer.
• Have been ill for at least one full working day.

Common reasons for sick leave include:

• Illness, injury, or other health issues
• Preventative medical care
• Medical evaluation
• Treatment or care for physical or mental illnesses

Time off to care for a sick or injured family member is unpaid, and is covered separately as time off for dependants rather than sick pay.

If you're an agency or casual worker who becomes unwell while on assignment, you may be eligible for SSP until the assignment is completed.

You may be eligible for SSP until the conclusion of a future assignment if you've previously agreed to another one. You won't be eligible for SSP if you're not working when you become sick.

You can still earn sick pay if you're on a zero-hours contract. Just ask your boss for it. If they say no, inquire about their reasoning. If you're not satisfied with their explanation, you can call Citizens Advice.

Some medical expenses incurred by a company on behalf of an employee are not considered sick pay. These payments consist of the following:

• Payments are provided for medical expenses under a medical plan or medical insurance.
• Any payments made to an employee that are unrelated to his or her presence or absence (e.g., personal time off).

However, if you do any of the following, you will not be eligible for SSP:

• If you are self-employed.
• Been receiving SSP for the past 28 weeks (and the 28 weeks ended within the last 8 weeks).
• Statutory maternity pay or Maternity Allowance if they received Employment and Support Allowance (ESA) in the previous 12 weeks.
• If you're pregnant, your baby is due in 4 weeks or less, and your condition is pregnancy-related, and you've had a baby in the last 14 weeks (or the last 18 weeks if your baby was born over 4 weeks early).
• Are serving in the military.
• If you are in legal custody (detained either by the police or in prison).

Are Self-Employed Tradespeople Entitled to Sick Pay?

It's unavoidable that you will be unable to work due to illness at some point throughout your self-employed profession. The government can assist you and there are things you can do to prepare your business for periods when you may be ill.

There are many options for self-employed tradespeople when it comes to sick pay. However, it is more complicated to get as the SSP does not cover sick pay for the self-employed. Here we will go through what sick pay self-employed tradespeople are entitled to.

While the SSP is not available to self-employed people, there is help in the form of the Employment and Support Allowance (ESA).

Previously, you could apply for one of three varieties of ESA. Currently, you can only apply for the 'new style' ESA, which is not means-tested but is taxable. It can also be used in conjunction with Universal Credit.

SSP is a payment made to employees who are out of work for an extended period due to illness. The legal structure of a firm determines whether a self-employed person is eligible for SSP.

Because you are an employee of your limited company, if you are a director of a limited company, this means you're eligible for the same SSP benefits as your employees.

If you work as a sole trader or in a partnership, you won't be eligible for SSP, but you may be eligible for other self-employed illness benefits.

Your or your partner's savings or income will have no bearing on the amount you get, but you must have paid enough National Insurance contributions in the previous two tax years to qualify for National Insurance credits.

While your claim is assessed, you'll get up to £75.65 a week if you're under 25, or up to £95.55 a week if you're 25 or over. This is reduced if you receive private pension payments worth more than £85 a week.

What Sick Pay Benefits Can Self-Employed Tradespeople Benefit From?

When you're a self-employed tradesman, every penny counts since you never know if you'll have a job tomorrow. So, it's important to understand the facts about self-employment perks and what to look out for in the future.

Here's your guide to UK benefits, from Universal Credit to Pension Credit.

Universal Credit

Universal Credit is a monthly payment (or twice a month for some persons in Scotland) that is meant to assist low-income and unemployed people with living expenses. It progressively replaced six existing benefits across the United Kingdom.

If you're on a low income or currently unemployed, you're 18 or older, either you or your partner is under the State Pension Credit qualifying age, you and your partner have combined savings of less than £16,000, and you live in the UK, you may be eligible for Universal Credit.

Self-employed people can apply for Universal Credit if they meet the criteria outlined above. The method for applying for Universal Credit, as well as the amount you may be eligible for, is different.

In the past, all self-employed people who were unable to work or were forced to cut their hours and earnings may have been eligible for ESA or Income Support.

The new Universal Credit programme, on the other hand, has flipped the old benefits system on its head. The benefits that you could previously claim independently have been merged under the umbrella of 'Universal Credit.'

Universal Credit has replaced these 6 benefits:

• Housing Benefit
• Child Tax Credit
• Working Tax Credit
• Income Support
• Income-based Jobseeker's Allowance
• Income-related Employment and Support Allowance

Tax credits ended on 5 April 2025, so no new claim can be made for Child Tax Credit or Working Tax Credit.

It's critical to remember that Universal Credit is only available to "gainfully self-employed" people. This implies that self-employment is your primary source of income and that you are earning money from it. Your work must also be "organised, developed, and consistent," as well as profitable.

Even if they pay themselves through PAYE, self-employed people (including company directors) must record their earnings after each assessment period, which is usually monthly.

You must also disclose your costs each period, including what you spent the money on, as well as tax, National Insurance (NI), and pension payments. If you are found to be gainfully self-employed, you will not be required to look for other work. Instead, you may concentrate on growing your company.

If you're newly self-employed, you may get a 12-month start-up period. During this time, your Universal Credit payment is based on your actual monthly earnings, the minimum income floor doesn't apply, and you won't be required to look for other work.

The first payment from Universal Credit can take up to 5 weeks after you apply.

Jobseeker's Allowance (JSA)

Self-employed Jobseeker's Allowance (JSA) is designed to help people who are unemployed or on a low income. It is feasible to claim JSA after being self-employed. All you need to know is which category you fit into and how to apply.

'New Style' JSA is now the only Jobseeker's Allowance you can apply for.

• It's based on your Class 1 National Insurance contributions, so if you're self-employed and only pay Class 2, you generally won't be eligible.
• Unlike the income-based JSA it replaced, it has no means test, so your savings, or a partner's savings, don't affect it.

If you're out of work on a low income, Universal Credit is usually the right route instead.

To figure out how much you'll get, go to the government's website, and use the benefits calculator.

These are the current weekly JSA rates, paid every 2 weeks:

• Up to £75.65 a week if you're under 25.
• Up to £95.55 a week if you're 25 or over.

'New Style' JSA is an individual benefit, so there's no separate couple rate.

You may have to wait up to 7 days for your JSA to begin and up to 2 weeks for your first payment after that. It's possible that your first payment won't be for the full amount.

Following your first payment, payments will be made every 2 weeks and will be in full.

Employment and Support Allowance

If you're unwell or have an illness or disability that limits the hours you can work, Employment and Support Allowance (ESA) is a weekly benefit payment designed to help you make ends meet until you're fit enough to return to work.

If you meet all of the following criteria, you can apply for ESA:

• You are not yet eligible for a pension.
• You have a handicap or a medical condition that limits the amount of work you can do.
• You are presently not receiving statutory sick pay or maternity pay from your company.
• You are not receiving Jobseeker's Allowance at this time (JSA).
• You've paid enough National Insurance contributions in the last 2 to 3 years, including National Insurance credits.

While your claim is being assessed, usually for around 13 weeks, you'll receive:

• Up to £75.65 a week if you're under 25.
• Up to £95.55 a week if you're 25 or over.

After the assessment, you'll be placed into one of two groups:

• Work-Related Activity Group — up to £95.55 a week, for those expected to return to work in the future.
• Support Group — up to £145.90 a week, for those unable to work.

Your payment will be reduced by half of any private pension income you receive above £85 a week. Every 2 weeks, the money is deposited directly into your bank account.

While claiming ESA, you can do 'permitted work':

• Up to 16 hours a week.
• Earning up to £203.50 a week.
• Voluntary work has no earnings limit.
• You must tell Jobcentre Plus about any work you do, including volunteering.

Take a look at the government's instructions on 'permitted work' for further information on working while claiming ESA.

If you still need to work while receiving ESA, or if you're not sure if the job you want to keep is approved work, call the ESA helpdesk and fill out the permitted work form.

New Style (ESA)

New claims for 'New Style' ESA account for the majority of new claims. To be eligible, you must have paid enough National Insurance contributions and have worked as an employee or self-employed for the previous 2 to 3 years.

You can check your National Insurance record if you're not sure whether you've paid enough contributions.

• Gaps in your record are filled by paying voluntary contributions instead. As a self-employed tradesperson, this means voluntary Class 2, currently £3.65 a week.
• Class 3 contributions only count towards your State Pension, not ESA.

You can apply for 'New Style' ESA in one of these ways:

• Online, via GOV.UK.
• By phone, if you can't apply online or you're applying on someone else's behalf: call the Jobcentre Plus new claims helpline on 0800 055 6688.
• In Northern Ireland: apply through nidirect or your local Jobs and Benefits office, on 0800 587 1377.

After you apply, the Department for Work and Pensions (DWP) will phone you to explain what evidence to send and where. You'll need the following items:

• A fit letter from your doctor (also known as a 'sick note' or 'doctor's line').
• Your completed 'New Style' ESA claim form.
• Evidence of your identity.
• Evidence of residence.
• You must provide proof of any pension income you receive.
• A copy of any healthcare payments you've received.

For self-employed people who don't have sick pay or enough funds to meet their financial obligations, government benefits aren't the only option.

There are two essential insurance products for self-employed workers that can provide financial assistance if they are unable to work due to illness or injury.

Income Protection Insurance

Self-employed Income Protection is a type of insurance that protects your earnings if you're unable to work due to an injury or illness. It typically pays 50% to 60% of your income as a monthly benefit. As a sole trader, you won't have a salary to insure, so cover is usually based on your pre-tax profit instead.

Income Protection Insurance, unlike Critical Illness Insurance, will cover any health problems you may have as long as they keep you from working.

Different definitions of incapacity are used to change the comprehensiveness of your policy's cover, and different incapacity definitions are used to evaluate whether you are allowed to claim on your policy.

Policyholders can also choose how long their claims can last. If you choose Long Term Income Protection, you can collect these benefits until you reach retirement age, whereas Short Term Income Protection only pays out for up to 2 years.

Make sure you have a job-specific definition of incapacity, which means you'll be eligible to file a claim as long as your health problem prohibits you from working in your current position.

Critical Illness Insurance

When a policyholder is diagnosed with a critical illness, critical illness insurance pays out a lump payment.

Insurers provide a list of conditions with the agreement that they will pay you a lump payment if you are diagnosed with one of the conditions on the list.

The number of conditions covered by insurers can range from 40 to 100, but the quality of a policy is determined more by the definitions of severe illnesses covered by the insurance than by the number.

One of the major flaws of Critical Illness Cover is that it only covers a limited number of catastrophic illnesses, leaving you vulnerable to a wide range of illnesses and accidents that could keep you from working.

How to Claim for Self-Employed Sick Pay

So, now you know all the benefits you can apply for as a self-employed tradesperson, now it is time to learn how you apply for sick pay. So, if you are a self-employed tradesperson wanting to apply for sick pay, here is how you do it.

Most people are then sent a "capability for work questionnaire" (form WCA50), usually within 4 weeks of your first payment. You'll need to return this within 28 days. Your Work Capability Assessment may be carried out:

• In person
• By video call
• Over the phone

Employment and Support Allowance (ESA)

If you're under State Pension age and have a disability or health condition that limits how much you can work, you can apply for a 'new style' Employment and Support Allowance (ESA). State Pension age is higher than 65 and depends on your date of birth, so it's worth checking your own on GOV.UK.

To qualify, you must have both:

• Worked as an employee or self-employed.
• Made enough National Insurance contributions in the last 2 to 3 years (National Insurance credits are also taken into account).

It's a good idea to look for any gaps in your National Insurance record. You may be eligible for Universal Credit in addition to or instead of 'new style' ESA. Housing and childcare expenditures, for example, may be covered by Universal Credit.

The most common sort of ESA is referred to as 'new style' ESA. Some people still receive 'income-based ESA' and 'contribution-based ESA,' which are two different types of ESA.

If you already have a contribution-based ESA, you may be able to switch to an income-based ESA. You may obtain extra money as a result of this.

You can't file a new contribution-based ESA claim.

You must have met National Insurance requirements for the two full tax years before the year you claim in, so the qualifying years move each year. If you're self-employed:

• Class 2 contributions count towards ESA. Class 4 doesn't.
• Class 2 is treated as paid once your profits reach £7,105 a year.
• Below this, you can pay voluntary Class 2 at £3.65 a week to protect your entitlement.

You can check your National Insurance record on GOV.UK. It'll tell you whether you've made a 'full year' of contributions, and whether they came from work, self-employment, or National Insurance credits.

You may have received National Insurance credits to make up for missed payments. For instance, if you were receiving benefits because you were unable to work or because you were unwell.

You'll need a full year of contributions for both tax years to meet the National Insurance requirements. You must have one of the following:

• Both years of job and years of self-employment.
• 1 year of job or self-employment.
• Another year of National Insurance credits.

You should still apply for a new style ESA if you don't think you meet the National Insurance standards or if you can't check your National Insurance record. As part of your application, the DWP will review your National Insurance record.

Even if you don't qualify for the new style ESA, if you have a limited ability to work, you may be eligible for National Insurance credits. These NI credits may be used to help you qualify for ESA in the future. They also count against your State Pension contributions.

If you don't meet the National Insurance test, you may be able to claim Universal Credit instead.

Jobseeker's Allowance (JSA)

To assist you in your job search, you can apply for a 'new style' Jobseeker's Allowance (JSA). You can no longer apply for JSA based on income.

If you're presently receiving contribution-based or income-based JSA, you'll continue to receive payments as long as you're eligible. You can fill out an application on the government's website.

Universal Credit

Your Universal Credit payments will be based on your wages as well as if you have children, a disability or health condition that prevents you from working, or if you require assistance with rent payments. If you reside with someone, their income and savings will be considered as well.

To figure out how much you'll get, go to the government's website, and use the benefits calculator. You can also find out more information on how to claim Universal Credit as a self-employed person there.

Conclusion

There's no sick pay for the self-employed. Statutory Sick Pay only reaches employees, so a sole trader has no employer to pay it.

Instead, you may be able to claim New Style ESA if your National Insurance record qualifies, or Universal Credit if your income and savings qualify. Both are means- or contribution-tested, take a few weeks to come through, and pay considerably less than a working week.

Income Protection is mostly recommended to replace a lack of sick pay to secure your income while you are unable to work. It can be used to pay critical expenses and can be claimed for any type of health problem that fulfils the criteria of incapacity in your policy.

When you apply for Income Protection when you're younger, you may be able to save money on your coverage.

Because the cost of Income Protection is mostly determined by your chance of filing a claim, policyholders who are young and healthy non-smokers should anticipate paying a lot less for their policy than those who are older and perhaps not in such good health.

However, if you are self-employed with a job such as a builder, plasterer, joiner, and painter, then it's worth knowing what support is available, even though it works differently to sick pay from an employer. We hope this article has helped you with all the information you need to know.