Self-employment for people with disabilities (UK)

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In the UK, self-employment is a popular option for disabled people. Of those in paid work, 18 per cent of disabled men and 8 per cent of disabled women are self-employed as their main job, compared to only 14 per cent and 6 per cent of non-disabled men and women respectively.[1] Unfortunately, many people are not familiar with the rules that can help disabled people into self-employed work.[2] Self-employment is also sometimes the only option for some disabled people who may require flexible working patterns as a result of their impairment.[3]

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UK Self-Employment and Benefits [edit]

Being at a disadvantage in the workplace means one is more likely to be isolated from the rest of society: to be socially excluded. UK policy has created a number of different programmes which have the aim of addressing social exclusion through employment,[4] including self-employment. One example, which aims to address the additional barriers disabled people face, is the Access to Work programme, which may provide impairment related equipment, support worker and travel costs for self-employed disabled people (if you are unable to use public transport)Access to Work.

There are also opportunities to work whilst claiming some benefits, such as Employment and Support Allowance and Disabled Persons Tax Credit. For example, Employment and Support Allowance (ESA) allows disabled people to do some (‘Permitted’) work, which includes self-employment, not only as a route to independence, but also to ‘allow them to be socially included’.[5] This 'permitted work' must satisfy a number of criteria.[6] For example, if a disabled person’s income is less than £20 per week, they can work any number of hours whilst still claiming ESA.[7][8] [9] Income-related ESA is non-taxable whilst contribution-based ESA is taxable.[10]

Universal Credit [edit]

Government plans for Universal Credit will affect disabled people who are self-employed. Under Universal Credit, a certain level of income from self-employment will be assumed to be present, even where it is not: "For Universal Credit we are considering introducing a floor of assumed income from self-employment for those registering as such. The floor will be set at the National Minimum wage for the reported hours; clearly profits above this limit may be received and reported."[11] Given that some disabled people may incur higher expenses, the impact of such income level assumptions could be particularly harsh for some disabled self-employed workers. Universal Credit may, therefore, create an additional barrier for disabled people who wish to undertake self-employment as a route to independence and social inclusion.

Notes [edit]

  1. ^ Boylan, A. and Burchardt, T. (2002) Barriers to self-employment for disabled people, Report for the Small Business Service, available at http://www.berr.gov.uk/files/file38357.pdf, last accessed January 2010
  2. ^ Boylan, A. and Burchardt, T. (2002) Barriers to self-employment for disabled people, Report for the Small Business Service, available at http://www.berr.gov.uk/files/file38357.pdf, last accessed January 2010
  3. ^ Association of Disabled Professionals (2007) 'Setting Up In Business? A Resource Guide for Disabled People and their Advisors', ADP, availability details at http://www.adp.org.uk/news.php
  4. ^ http://www.direct.gov.uk/en/DisabledPeople/Employmentsupport/WorkSchemesAndProgrammes/DG_187696
  5. ^ DWP (2008) Technical Factsheet T3: Permitted Work, Voluntary Work and Test Trading Rules, http://www.dsdni.gov.uk/t3_current_work.pdf
  6. ^ DWP (2008) Technical Factsheet T3: Permitted Work, Voluntary Work and Test Trading Rules, http://www.dsdni.gov.uk/t3_current_work.pdf
  7. ^ DWP (2008) Technical Factsheet T3: Permitted Work, Voluntary Work and Test Trading Rules, http://www.dsdni.gov.uk/t3_current_work.pdf
  8. ^ Welfare Reform Act 2007 available at http://www.opsi.gov.uk/Acts/acts2007/pdf/ukpga_20070005_en.pdf
  9. ^ Disability Alliance (2009) Factsheet: Work for people who are sick or disabled, http://www.disabilityalliance.org/f35.htm
  10. ^ Low incomes Tax Reform Group http://www.litrg.org.uk/low-income-workers/state-benefits#esai
  11. ^ Universal Credit: welfare that works, Annex 3. Treatment of earnings and income in Universal Credit, available at http://www.dwp.gov.uk/docs/universal-credit-annexes.pdf

External links [edit]

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