Beautiful Virgin Islands

Tuesday, Feb 10, 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

Beautiful Virgin Islands
0:00
0:00
Close
UK Police Review Fresh Claims Involving Prince Andrew as Senior Royals Respond to Epstein Files
Keir Starmer’s Premiership Faces Unprecedented Strain as Epstein Fallout Deepens
Starmer Vows to Stay in Office as UK Government Faces Turmoil After Epstein Fallout
China and UK Signal Tentative Reset with Commitment to Steadier, Professionally Managed Relations
UK Confirms Imminent Increase in ETA Fee to £20 as Entry Rules Tighten
UK Signals Possible Seizure of Russia-Linked ‘Shadow Fleet’ Tanker in Escalation of Sanctions Enforcement
Epstein Scandal Piles Unprecedented Pressure on UK Prime Minister Keir Starmer’s Leadership
UK’s ‘Most Romantic Village’ Celebrates Valentine’s Day and Explores the Festival’s Rich History
Winklevoss-Led Gemini to Slash a Quarter of Jobs and Exit European and Australian Markets
UK Royal Family Faces Intensifying Strain as Epstein-Linked Revelations Rock the Institution
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
Tech Mega-Donors Power Trump-Aligned Fundraising Surge to $429 Million Ahead of 2026 Midterms
UK Pharma Watchdog Rules Sanofi Breached Industry Code With RSV Vaccine Claims Against Pfizer
Melania Documentary Opens Modestly in UK with Mixed Global Box Office Performance
Starmer Arrives in Shanghai to Promote British Trade and Investment
Harry Styles, Anthony Joshua and Premier League Stars Among UK’s Top Taxpayers
New Epstein Files Include Images of Former Prince Andrew Kneeling Over Unidentified Woman
Starmer Urges Former Prince Andrew to Testify Before US Congress About Epstein Ties
Starmer Extends Invitation to Japan’s Prime Minister After Strategic Tokyo Talks
Skupski and Harrison Clinch Australian Open Men’s Doubles Title in Melbourne
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
Trump Reverses Course and Criticises UK-Mauritius Chagos Islands Agreement
Elizabeth Hurley Tells UK Court of ‘Brutal’ Invasion of Privacy in Phone Hacking Case
UK Bond Yields Climb as Report Fuels Speculation Over Andy Burnham’s Return to Parliament
Prince William to Make Official Visit to Saudi Arabia in February
Prince Harry Breaks Down in London Court, Says UK Tabloids Have Made Meghan Markle’s Life ‘Absolute Misery’
Malin + Goetz UK Business Enters Administration, All Stores Close
EU and UK Reject Trump’s Greenland-Linked Tariff Threats and Pledge Unified Response
UK Deepfake Crackdown Puts Intense Pressure on Musk’s Grok AI After Surge in Non-Consensual Explicit Images
Prince Harry Becomes Emotional in London Court, Invokes Memory of Princess Diana in Testimony Against UK Tabloids
UK Inflation Rises Unexpectedly but Interest Rate Cuts Still Seen as Likely
Starmer Steps Back from Trump’s ‘Board of Peace’ Amid Strained US–UK Relations
Prince Harry’s Lawyer Tells UK Court Daily Mail Was Complicit in Unlawful Privacy Invasions
UK Government Approves China’s ‘Mega Embassy’ in London Amid Debate Over Security and Diplomacy
×