Sick pay for self-employed: what you can claim in the UK

Published Friday 29 May 2026

Table of contents

• Can you get sick pay if you're self-employed?
• How your business structure affects sick pay entitlement
• What sickness benefits can I claim if I'm self-employed and sick?
• Self-employed income protection insurance
• Checking your National Insurance contributions
• Stay on top of your finances with Xero
• FAQs on self-employed sick pay

Key takeaways

• Self-employed sole traders and partners can't claim Statutory Sick Pay (SSP). SSP is only available to employees and certain company directors.
• Government benefits like Employment and Support Allowance (ESA), Personal Independence Payment (PIP), and Universal Credit can help if illness stops you from working.
• Income protection insurance can replace a portion of your earnings during illness. Compare policies by cost, deferred period, and cover length.
• National Insurance contribution records affect your eligibility for benefits like ESA. Check your record online and fill any gaps with voluntary contributions.

Can you get sick pay if you're self-employed?

If you're self-employed as a sole trader or in a partnership, you're not entitled to Statutory Sick Pay (SSP). SSP is a weekly payment from an employer to an employee who is too ill to work. Because you don't have an employer, you can't receive it.

From April 2026, the SSP rate is £123.25 per week, or 80% of average weekly earnings if that's lower. The previous Lower Earnings Limit has been abolished. SSP is now available from day one of employment regardless of earnings. But this change only applies to employees, not to self-employed sole traders.

That said, other support does exist. You can look into government benefits and private insurance to protect your income if illness prevents you from working. Understanding your options before you get ill puts you in a stronger position to act quickly if it happens.

How your business structure affects sick pay entitlement

Your eligibility for sick pay depends on how your business is set up. The rules differ depending on whether you're a sole trader, in a partnership, or a limited company director.

Sole traders and partners

As a sole trader or partner, you work for yourself. You have no employment contract and no employer to pay you SSP. This means you'll need to rely on government benefits or private insurance if you can't work due to illness.

Without a regular salary, it's especially worth keeping accurate financial records. Knowing exactly how much you earn, spend, and have in reserve helps you plan for periods when you can't work. Good bookkeeping makes this easier to track.

If you're in a business partnership, check your partnership agreement. Some agreements include provisions for illness. These may cover how profits are shared while a partner is unable to work.

Limited company directors

If you run a limited company and pay yourself through PAYE, you may qualify for SSP. Your company is your employer, and you're technically an employee of it.

From April 2026, the Lower Earnings Limit for SSP was abolished, so you no longer need to earn a minimum amount to qualify. SSP is now payable from day one of sickness at the rates described above.

To claim, you'll need to provide your company with a fit note from your GP if you're off sick for more than seven days.

What sickness benefits can I claim if I'm self-employed and sick?

If you're self-employed and can't claim SSP, you may still be eligible for government benefits. The three main options are Employment and Support Allowance (ESA), Personal Independence Payment (PIP), and Universal Credit (UC).

Employment and Support Allowance (ESA)

ESA provides financial support if illness or disability limits your ability to work. To claim contribution-based ESA (known as "new style" ESA), you'll need enough National Insurance contributions. These must come from the two full tax years before your claim.

During the initial assessment period, ESA pays £75.65 per week if you're under 25, or £95.55 per week if you're 25 or over.

After the assessment, you'll be placed in one of two groups. The work-related activity group pays up to £95.55 per week. The support group pays up to £145.90 per week for those unable to return to work.

You can do "permitted work" while claiming ESA. This allows you to work up to 16 hours per week and earn up to £203.50 per week. These are the 2026/27 tax year limits.

To apply, you'll need a fit note from your doctor. You'll also need your National Insurance number, bank account details, and income information. You can start your ESA claim on GOV.UK or by phone.

Personal Independence Payment (PIP)

PIP helps with the extra costs of a long-term health condition or disability. Unlike ESA, it's not based on your employment status or National Insurance record. You can claim PIP whether you're working or not.

PIP has two components: a daily living component and a mobility component. Each is paid at either a standard or enhanced rate, depending on how your condition affects you.

You'll need to complete a "How your disability affects you" form as part of your application. Most claimants also attend an assessment with a health professional. You can find current rates, eligibility details, and the PIP application process on GOV.UK.

Universal Credit for self-employed people

Universal Credit (UC) is a monthly payment to help with living costs if you're on a low income. Self-employed people can claim UC, but there's an important rule to understand: the minimum income floor.

The minimum income floor assumes you're earning a certain amount each month, even if your actual earnings are lower. It's calculated based on the National Minimum Wage for the number of hours you'd be expected to work. If your real earnings fall below this floor, UC uses the assumed figure instead.

However, if you're unwell and have a fit note, the minimum income floor may not apply during your illness. This means your UC payment could be higher during a period of sickness. Check the latest eligibility rules on GOV.UK for details.

Self-employed income protection insurance

Income protection insurance pays a portion of your regular income if you can't work due to illness or injury. It's especially worth considering if you're self-employed and don't have access to SSP or employer sick pay schemes.

Most policies pay out a percentage of your pre-tax income, typically between 50% and 70%. Payments are usually tax-free and continue until you return to work, reach a set end date, or retire.

When comparing policies, there are a few key factors to consider:

• Deferred period: this is the waiting time between falling ill and receiving your first payment. Common options are four, eight, 13, or 26 weeks. A longer deferred period usually means lower premiums.
• Short-term vs long-term cover: short-term policies pay out for one to two years. Long-term policies cover you until retirement age. Choose based on your savings buffer and risk tolerance.
• Cost factors: your premium depends on your age, occupation, health, smoking status, and the length and level of cover you choose.
• Critical illness cover: this pays a lump sum if you're diagnosed with a specified serious illness. In 2024, insurers paid out a record £5.32 billion in individual protection claims, according to the Association of British Insurers (ABI).

Shop around and compare quotes from multiple providers. Consider speaking with a financial adviser who specialises in cover for self-employed workers.

Keep in mind that income protection doesn't usually cover pre-existing conditions. If you have a health condition before taking out a policy, check the terms carefully to see what's included and excluded.

Checking your National Insurance contributions

Your National Insurance (NI) contribution record matters because it directly affects your eligibility for benefits like contribution-based ESA. If you have gaps in your record, you may not qualify.

You can check your NI record online through your personal tax account. Your record shows which years you've paid contributions and whether any years have gaps.

If you find gaps, you may be able to make voluntary NI contributions to fill them. Class 2 and Class 3 contributions are the most common options for self-employed people. Filling gaps can protect your entitlement to ESA and your future State Pension.

It's a good idea to check your record regularly, especially if your self-employed income varies from year to year. Most self-employed people pay Class 2 NI contributions through their self-assessment tax return. If you've deferred payments or had low-profit years, you might have gaps without realising it.

Stay on top of your finances with Xero

When illness disrupts your ability to work, having a clear view of your finances makes a real difference. Knowing exactly where your money stands helps you make better decisions about benefits, insurance, and cash reserves.

Xero's accounting software lets you track income and expenses in real time, so you always know your financial position. Cash flow forecasting helps you see how long your reserves could last if your income drops. You can also keep your records organised for self-assessment returns and any benefit applications that require proof of earnings.

Take the guesswork out of managing your money if you're self-employed in the UK. Get one month free.

FAQs on self-employed sick pay

Here are some frequently asked questions about self-employed sick pay.

How much sick pay can a self-employed person get?

Self-employed sole traders and partners can't receive SSP, but you may qualify for ESA (up to £145.90 per week in the support group) or Universal Credit, depending on your circumstances.

Do I need a doctor's note to claim benefits?

Yes, for ESA you'll need a fit note (sometimes called a sick note) from your GP. For the first seven days of illness, you can self-certify without one.

Can I work while claiming sickness benefits?

With ESA, you can do permitted work of up to 16 hours and earn up to £203.50 per week without losing your benefit. PIP has no work restrictions at all.

What is the current SSP rate?

From April 2026, SSP is £123.25 per week or 80% of average weekly earnings, whichever is lower. It's available to employees from day one with no Lower Earnings Limit.

Can I get maternity pay if I'm self-employed?

Self-employed people can't claim Statutory Maternity Pay. You may qualify for Maternity Allowance if you've been registered as self-employed for at least 26 weeks in the 66 weeks before your due date.

What is the minimum income floor for Universal Credit?

The minimum income floor assumes you're earning at least the National Minimum Wage for your expected hours; if your actual income is lower, UC uses the assumed figure. During illness with a fit note, the floor may be lifted temporarily.