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Debt Advice Handbook 15th edition

1. Introduction
This chapter looks at the ways in which the debts and strategies covered elsewhere in this Handbook may need extra consideration when advising someone who is, or has been, running a small business (self-employed clients). The chapter also examines how a self-employed client’s individual circumstances can affect the level of support that non-business specialist debt advisers can provide.
This chapter should be used in conjunction with the rest of the Handbook. The chapter also includes information about changes introduced because of the outbreak of COVID. Since many of the changes are temporary and prone to further updates, this information should be read alongside the latest government guidance and COVID legislation.
This chapter is not a guide to business credit or business viability. These are both specialist areas in their own right.
Giving advice to self-employed clients
When dealing with self-employed clients, you need to look at their overall situation, including the client’s business. This is so that you can fully consider how a client’s circumstances affects the advice that you can offer. Do this even if a self-employed client says that they have personal debts only.
Organisations should have a policy (or guidelines) in place that sets out the level of support that debt advisers are expected to provide self-employed clients. The policy should take into account the level of an adviser’s knowledge in this area and the technical support that is available within the organisation. The policy should also recognise that three key factors usually affect the type of help that self-employed clients need to deal with their situation. These three key factors are:
    how the client is set-up in business (his/her trading status);
    whether the client has stopped trading; and
    whether the client has any complex business debts (such as a business premises lease or tax dispute).
The remainder of this chapter assumes that your organisation’s policy provides some level of support to self-employed clients. The chapter shows how the key factors listed can affect the scope and type of advice that debt advisers may be able to offer a self-employed client. It also explains when a signpost to a specialist service is usually required.
This chapter is not intended to challenge any organisation’s policy. Advisers should refer to their own guidelines and always seek specialist advice if they are uncertain about advising a self-employed client.
Business Debtline provides free business debt advice for self-employed people and small businesses. It can advise clients who are still trading and clients who have ceased trading who have complex debt situations. Advice is available by webchat via its website at businessdebtline.org or by calling 0800 197 6026.