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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.”

Contact us today to discuss which type of business structure suits you.

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Start-ups receive auto-enrolment reminder

Anyone starting a business or hiring new staff from this October will have instant auto-enrolment duties to fulfil, according to The Pensions Regulator (TPR).

All businesses set up before April 2012 have now passed their staging date, while the majority of businesses reaching their staging date this year are confident they will comply with their duties.

Out of 476 respondents, 86% of employers who staged between January and April were aware of auto-enrolment, followed with 79% staging between May and November and 65% in January 2018.

Further findings:

  • 65% of small businesses and 56% of micro employers fully understood their duties 
  • 60% who staged between January and April knew how many of their staff they need to enrol, compared to 47% staging between May and November and 43% due to stage in January 2018
  • 70% who staged between January and April believe auto-enrolment is a good idea for their staff, along with 69% staging between May and November and 81% due to stage in January 2018.

Charles Counsell, executive director of auto-enrolment at TPR, said:

‘”More than seven million [workers] are now saving into a workplace pension and auto-enrolment is now simply part of running a business.

“From October, as soon as you take on staff you will have duties towards them. Anyone setting up a business and taking on staff will need to work automatic enrolment into their plans.”

Contact us to discuss your auto-enrolment duties.