Arab Press

بالشعب و للشعب
Wednesday, Aug 05, 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

Arab Press
0:00
0:00
Close
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
FIFA’s Retreat Leaves a Larger Question Over Who Guards the Game
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Arrest Warrant Issued in Lebanon for Tycoon Spotted Meeting Netanyahu in Washington
Trump says Israel ‘would not survive’ without US
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Pentagon Discloses Nearly 100 US Troop Injuries During Renewed Iran Fighting
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Spain Defeats Argentina in Extra Time to Win Second World Cup
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
US Retaliates Against Iran After Two American Troops Killed in Jordan
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
×