London Daily

Focus on the big picture.
Monday, Jul 13, 2026

Self-employed in UK? Here are the chancellor's new measures to help

Self-employed in UK? Here are the chancellor's new measures to help

Rishi Sunak boosts safety net but workers criticise measures as not going far enough in coronavirus crisis

The chancellor, Rishi Sunak, said on Friday 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.

But there is mounting anger among the self-employed over what they see as insufficient support in the emergency measures announced on Friday evening.

The self-employed will gain access to the equivalent of statutory sick pay, and will be given tax deferrals, but are not part of the 80% earnings pledge.

The Federation of Small Businesses said: “The question at this point is – with firms being forced to close – why have the self-employed been excluded from the commitment to pay 80% of earnings?

“It cannot be right that an employee currently earning £25,000 a year could access £20,000 per annum through the new job retention scheme, while someone who’s self-employed earning the same sum might only access around £5,000 worth of support.”


What new rights do I now have as a self-employed person?

Sick pay is the main change. The chancellor has announced that the “self-employed can now access in full universal credit at a rate equivalent to statutory sick pay for employees”.


How much ‘sick pay’ will I get as a self-employed person?

The current statutory sick pay rate for employees is £94.25 per week of statutory sick pay for up to 28 weeks. The government announced last week that the money will be payable from day one instead of day four for affected individuals.


What state benefits can I apply for as a self-employed person?
In general, when it comes to working out which benefits you are eligible for and how much you might get, the same rules usually apply whether you work for an employer or are self-employed, according to the benefits advisory group Turn2Us. Your earnings from self-employment will count as income when working out what benefits might be available to you. Turn2Us also offer a useful benefits calculator.

But self-employed people find applying for benefits a hugely complex affair. In the wake of the chancellor’s announcements, one freelance worker contacted the Guardian to say: “Have you ever tried to navigate the system to obtain any support from the public finances as a self-employed sole trader who has lost their trade? It is byzantine, with so many hoops.”


Sunak mentioned the minimum income floor. What does that mean?

The government will also suspend the minimum income floor, which is the amount the DWP uses to set your universal credit payment each month.

Because the minimum income floor has been removed temporarily, self-employed people are now treated the same as employed people within the universal credit system. Previously, if someone had been self-employed for 12 months, universal credit would apply the minimum income floor to them, which is essentially a financial assumption about the income they have coming in, regardless of whether they are actually earning it. Benefit advisers say it was a harsh rule.

The government says the the change to the minimum income floor will last “for the duration of the outbreak”.

The government website offering more guidance is at gov.uk/universal-credit and gov.uk/guidance/new-style-employment-and-support-allowance.


What is the chancellor doing to defer my ‘on account’ self-employed tax bills?


Sunak said he will be deferring the next round of self-assessment payments on account (originally scheduled for 31 July 2020), to January 2021.

“It is a relatively simple measure, which is easy to implement and will provide a direct and easily quantifiable benefit to taxpayers in a time of real stress for many,” said Robert Salter of accountants Blick Rothenberg.


What about VAT?


Most self-employed earn below the threshold for registering for VAT, which stands at £85,000. The chancellor said he will be deferring VAT for the next quarter, saving businesses £30bn.

Newsletter

Related Articles

0:00
0:00
Close
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
Britain and United States Maintain Focus on Pharmaceuticals Cooperation and Industrial Growth
UK Public Services Face Continued Pressure as Government Promises Visible Improvements
Regional Economic Power Becomes Key Theme in Britain’s Next Political Phase
Britain Expands Support for Small Businesses as Firms Seek Better Access to Finance
UK Economy Remains Central Political Challenge as Cost of Living and Growth Concerns Persist
National Health Service Introduces New Workplace Reviews to Improve Conditions for Healthcare Staff
UK Life Sciences Sector Secures More Than Three Billion Pounds in Investment to Support Innovation
Britain Strengthens Defence Strategy as Security Concerns Reshape Military and Industrial Policy
Andy Burnham Promises Stronger UK Defence Industry and Expanded Domestic Production
UK Government Faces Difficult Spending Choices as Labour Leadership Transition Approaches
Rachel Reeves Warns Andy Burnham of Immediate Economic Challenges After Expected Leadership Change
Andy Burnham Prepares to Lead UK Government With Plans for Regional Power Shift and Economic Reset
Government Creates Emergency Support Scheme for Financially Struggling Universities
United Kingdom Replaces Traditional Farm Subsidies With Payments Linked to Environmental Performance
National Grid Reports First Week of Electricity Generation Without Fossil Fuels
United Kingdom Financial Regulator Introduces Tougher Capital Rules for Cryptocurrency Exchanges
Belfast Harbour Expands Operations to Attract Investment Through United Kingdom and European Union Market Access
Scottish Government Threatens Legal Challenge Over Westminster Cuts to North Sea Transition Funding
United Kingdom Accelerates Trans-Pennine High-Speed Rail Project Linking Northern Cities
United Kingdom Secures Ten Billion Pound Investment for Cambridge Quantum Computing Campus
Port Talbot Steelworks Wins Support for Green Hydrogen Transition and Protection of Industrial Jobs
United Kingdom Sends Royal Navy Carrier Strike Group to Indo-Pacific as Regional Security Focus Expands
National Health Service Expands Artificial Intelligence Diagnostics Across England to Reduce Screening Backlogs
United Kingdom Launches Fifty Billion Pound Infrastructure Fund to Accelerate Housing and Construction
UK Medical Chiefs Update Health Guidance to Promote Everyday Physical Activity
Office of Communications Keeps Wikipedia Under Review Under UK Online Safety Rules
UK Defence Ministry Expands Deep-Strike Capability Through Precision Missile Programme
Russell Group Universities Warn Funding Cuts Could Damage NHS Workforce Training
UK Parliament Calls for National Emergency Broadcast as Heatwave Conditions Intensify
UK and Netherlands Strengthen Naval Cooperation With New Amphibious Defence Partnership
UK Defence Ministry Joins International Missile Programme With One Hundred and Ninety Million Pound Investment
Bank of England Warns Middle East Conflict and AI Risks Could Pressure UK Economy
UK Government Introduces New Rules to Limit Foreign Influence in Political Donations
UK and France Prepare Naval Mission to Protect Shipping Through Strait of Hormuz
United States Pressures UK to Increase Defence Spending at NATO Summit
Bank of England Warns Artificial Intelligence Investment Boom Could Create Financial Stability Risks
Bank of England Begins Direct Oversight of Critical Technology Providers Supporting UK Finance
Andy Burnham Set to Become UK Prime Minister After Labour Leadership Race Clears Path to Downing Street
Scottish Fishing Industry Calls for Emergency Support Amid Rising Costs
UK Supports Stronger European Response to Russian Actions in Ukraine
Devon and Cornwall Police Release Suspect in Ann Widdecombe Murder Investigation
×