Self-Employed Value Sick Pay Over Other Benefits

Self-employed people would prefer to receive sick pay over any other statutory benefit, a study by FreeAgent and The Freelancer & Contractor Services Association (FCSA) has found.

However, out of 900 micro-business owners surveyed, 76% have no plan in place to provide sick pay, maternity leave, holiday or redundancy pay.

Attitudes towards statutory benefits varied depending on business structure with sole traders more likely to value sick pay compared to those working through their own limited companies.

Furthermore, 35% of self-employed people have no plans in place to fund their own retirement.

When it comes to auto-enrolment, 28% said they were unsure if they would join a scheme while 22% said they would opt out.

Among limited companies, 32% would choose to opt out of the scheme compared to 14% of sole traders.

Julia Kermode, chief executive at the FCSA, said:

“For many people who work for themselves, self-employment is a career choice and those who choose it know that this way of working does not come with statutory benefits.

However, it is clear from our research that many have not made appropriate provisions to cover benefits that employees receive.

“The government should find a way of offering additional benefits specifically to those people who want and need them.”

For any help or advice with financial planning talk to RPD