Self Employed Income Protection
Discover a tax-efficient approach to covering your costs when you can’t work
Illness and injury can have a significant impact on your income. With the right insurance, you can keep your finances on track while you recover.
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Receive sick pay even if you’re self employed
In your line of work, a break from earning can have serious consequences. When you’re self employed, the idea of being unable to work due to illness or injury is daunting—unless you have Self Employed Income Protection.
Maintain your financial stability even if you can’t work.
Self Employed Income Protection ensures you receive a regular income, usually between 50-70% of your normal earnings, providing peace of mind during tough times.
If you run a limited company, you can also benefit from transferring premium costs to your business expenses, making them tax deductible.
We’re here to help you navigate the range of Self Employed Income Protection policies available, ensuring you find cover tailored to your specific needs and situation.
Please note: All references to the tax treatment of products and their advantages are based on our interpretation of current tax legislation and HMRC guidelines. Tax relief levels and regulations may change.
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Is Self Employed Income Protection really that important?
We believe it is. Unlike Critical Illness Insurance, Self Employed Income Protection is designed to support you financially while you’re unwell or injured, helping you return to work more quickly. It not only offers peace of mind by ensuring your bills are covered each month but can also assist with the costs of treatment or rehabilitation.
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Prepare for the worst with Self Employed Income Protection insurance.
Fill out the form below to arrange a time to speak to an Income Protection Insurance expert.
Your Self Employed Income Protection Questions Answered
What is Income Protection Insurance?
Income Protection is an insurance policy that pays you a regular wage if you’re unable to work due to illness or injury. It will continue to pay you a salary until you’re ready to return to work, retire or if you pass away (dependent on the level of benefit taken).
Does IR35 affect my income protection?
Yes. Your IR35 status determines how your income is assessed by insurers and whether your policy is best held personally or through your limited company.
Outside IR35, executive income protection through your company can cover salary and dividends up to 80% of total earnings.
Inside IR35, personal income protection is typically the appropriate route, based on your employment income.
Broadbench advisers will assess your specific IR35 position and recommend the most appropriate structure.
Can I get income protection if I work through an umbrella company?
Contractors working through an umbrella company are treated as employees for tax purposes and can arrange personal income protection based on their employment income. Some umbrella companies offer group income protection as part of their package, but the level of cover is often limited. A personal policy arranged through Broadbench will typically provide more comprehensive and portable cover.
Will Income Protection protect me if I can’t find a contract?
No. This is a common misconception of Income Protection; it only covers you when you are unable to work due to illness or injury. It does not cover gaps in between employment. If you’re looking for unemployment payment, you will have to apply for JSA.
What happens to my income protection if my IR35 status changes?
If you move from outside to inside IR35, or vice versa, your income protection should be reviewed. A change in IR35 status affects your take-home pay, your tax position, and whether your policy should be held personally or through your company. Broadbench will review your arrangements whenever your situation changes to ensure your cover remains appropriate.
What factors impact an Income Protection premium?
Your age, health, line of work and if you have smoked in the last 12 months can have an impact on your monthly premium. Therefore, it’s important to speak to an Income Protection expert to get a rough idea of what cover you can expect and at what cost before applying.
What happens if I change contracts?
If your new contract pays more or less than the previous contract (or the contract you were on when you started the policy), you can contact your insurer to increase or decrease the amount of coverage you need.
Why do I need Income Protection Insurance?
People in permanent jobs have the benefit of receiving sick pay. Those earning a day don’t have this luxury which is why it’s so important to have Income Protection. It gives you the peace of mind that if you become ill, you’ll be paid a regular wage so you can look after the bills until you’re well enough to return to work.