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Hello, I’m Sara, a Chartered Accountant who transitioned into running an online business. I understand just how daunting and confusing it can be to take the leap into self-employment. The questions, the uncertainties, and the steep learning curve are all challenges I’ve faced myself. Whether you’re in the early stages of planning to go self-employed, just dipping your toes into making money on your own terms, or already fully committed, this blog is dedicated to helping you every step of the way. Through detailed guides, expert tips, and practical advice, I aim to be your go-to resource. From mastering financial management and navigating tax obligations to setting up the foundations of your business, I’m here to provide you with the clarity and confidence you need to thrive in your self-employment journey.
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Employment & Support Allowance (ESA)
Employment & Support Allowance (ESA) is a form of financial support originally designed to help those who are unable to work due to illness or disability. In response to the Coronavirus crisis, the government has extended ESA to offer support to self-employed individuals as well.
Unlike employed workers, self-employed individuals cannot claim statutory sick pay. However, if you're self-employed and need to take time off work due to self-isolation, you may be eligible for ESA.
Employment & Support Allowance (ESA) for the Self-Employed
Under the new rules, self-employed individuals can claim ESA from the first day they need to self-isolate, rather than waiting until the eighth day as was previously required.
This means that you can expect your first ESA payment approximately two weeks after contracting the Coronavirus.
Currently, ESA payments are as follows:
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£73.10 per week for individuals over 25.
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£57.90 per week for individuals under 25.
Depending on your circumstances, these amounts may not fully cover your lost income if your earnings have stopped entirely.
However, if your income is decreasing, I encourage you to take advantage of all available support. Don’t hesitate to ask for help – this is exactly why we contribute to National Insurance.
How to Claim Employment & Support Allowance (ESA)
To qualify for the ‘new style’ ESA, you must have been self-employed and paid sufficient National Insurance contributions during the last two tax years (2017/2018 and 2018/2019).
You will also need to contact the NHS via the 111 helpline to obtain a letter confirming that you are self-isolating.
This means you should have kept up with your Class 2 National Insurance payments, even if your business profits were below the threshold (which I have long recommended to my readers).
Visit the government website to check your eligibility or call the ESA helpline at 0800 169 0154.
When Will You Receive Your ESA Payment?
The government has pledged to deliver these payments quickly. If this is your first time claiming ESA, you will receive the money promptly, provided you have all the necessary information ready.
Even if it turns out that you are not eligible, you won’t be required to repay the money.
Let me know if you need any further adjustments!