Maximise income
The scope for improving the income of a person running their own business can be greater than that of an employee. Specialist business advice can improve profitability, for example, through better marketing, reducing production costs and overheads or by diversification. Check whether any specialists can help the client in this area.
Business rescue specialists such as insolvency practitioners can advise on this.
In addition, grants and other facilities, such as low-interest loans, may be available to small businesses. More information can be found at or .
The payment of tax may use up a substantial proportion of income for self-employed clients. Ensure that all relevant individual tax allowances, reliefs and expenses that a business can offset against tax are being claimed. You can also signpost clients to a useful tool at to check whether simplified expenses could save the business tax. Since this can be a complex area, the client may need to speak to their bookkeeper or accountant.
Business rates can be a major expense for clients who have a business lease. Check for any exemptions or discounts with the local authority.
Some self-employed people miss out on benefits because they incorrectly assume that they are not entitled to claim benefits because they are in business.
•Self-employed clients may be able to claim universal credit (UC). Minimum income floor rules usually apply unless the business is in a start-up period. A UC claim is assessed on a monthly basis, so there is no need for a projection apart from when the claimant is in their first assessed month.
•A self-employed client may also be able to claim council tax reduction, council tax discounts and disability benefits.
•If they do not come under the UC system, a self-employed client may be able to claim housing benefit, although this is rarely available for clients under pension age.
•If the relevant NI payments are up to date and the client cannot work because of sickness, they may be able to claim ‘new-style’ employment and support allowance.
Since a self-employed client’s income can be prone to fluctuations and eligibility rules vary among benefits, a client will likely benefit from specialist welfare benefits advice. The Turn2us website, , provides a personalised benefits check for self-employed clients. Most self-employed clients will come under the ‘minimum income floor’ rules when it comes to UC. For further information, see
or .