What does one week off sick really cost a sole trader?

Do sole traders get sick pay? 

Sole traders are self-employed, so they are not eligible for Statutory Sick Pay from their own business. Statutory Sick Pay is paid by an employer to eligible employees; it is not a payment you can make to yourself as a sole trader. 

Depending on your circumstances, you may be able to claim financial support such as New Style Employment and Support Allowance or Universal Credit. Eligibility is not automatic. It can depend on factors such as your health, National Insurance record, household income and savings, so check the latest GOV.UK guidance on Employment and Support Allowance and Universal Credit. 

That difference matters. An employee may still receive some pay when illness keeps them away from work. For many sole traders, a day without working is a day without earning. 

How much could one week off sick cost? 

Start with the work you would have completed during the week. Then add the expenses that continue whether you work or not, plus any costs created by cancelling or rearranging jobs. 

Imagine a sole trader who normally turns over £1,000 a week: 

This is an illustration, not an average or a prediction. Your true cost will depend on your trade, margins, commitments and whether work can be postponed rather than lost. 

It is also important not to treat turnover and take-home pay as the same thing. Turnover is the income your business receives before allowable expenses and tax. For cash-flow planning, however, lost turnover still matters: it is money that may not arrive while many outgoing payments continue.

What would a week off cost you? 

Use this quick list to work out your own figures: 

• Income or turnover you would lose 

• Business costs that would continue 

• Lost bookings, deposits or refunds 

• Cover, rebooking or catch-up costs 

• Estimated total financial impact 

If your income changes from week to week, look back over several months and use a realistic weekly average. You may also want to run the calculation for both a quiet week and a busy week.

The costs do not stop when you stop working 

Even if your business is temporarily quiet, your direct debits and financial commitments are likely to continue. These could include: 

• Rent, studio fees or chair rental 

• Van, car or equipment finance 

• Software and online service subscriptions 

• Phone and broadband bills 

• Insurance premiums 

• Accountancy fees and professional memberships 

• Advertising commitments 

• Tax payments you have already budgeted for 

• Household costs such as your mortgage or rent, utilities and food 

Listing your essential business and household outgoings gives you a clearer minimum figure to plan around. It can also show which subscriptions or costs could be paused in a longer emergency.

The impact will look different in every trade 

A week away from work does not affect every sole trader in the same way: 

• Personal trainer: cancelled sessions and classes, plus possible refunds or venue fees. 

• Dog walker: lost daily bookings and the risk that regular clients need to find alternative cover. 

• Plumber: cancelled jobs and urgent work passed to another tradesperson. 

• Hairdresser or beauty professional: appointment cancellations while chair rent or premises costs continue. 

• Photographer: a missed shoot, returned deposit, travel cancellation or rescheduling costs. 

• Consultant: lost billable days, delayed projects and extra hours needed to catch up. 

Think beyond the work booked for that particular week. If an absence delays a project or forces a loyal customer to go elsewhere, part of the financial effect may appear later.

Could being ill cost you future work too? 

Most customers will understand that people get ill. Even so, cancelling at short notice can create knock-on effects for both you and them. 

You may need to refund a deposit, pay someone else to cover urgent work or spend extra time reorganising your diary. Deadlines could move, new enquiries might go unanswered and repeat customers may need another supplier. Once you recover, squeezing postponed work into an already full schedule can extend the disruption and put your health under more pressure. 

A simple absence process can reduce that risk. Keep customer details and booking information secure but accessible, prepare a short cancellation message, and know which trusted contacts could cover urgent work with the customer’s agreement.

How can sole traders prepare for time off sick? 

You cannot plan when you will become ill, but you can plan how your business will respond. 

Know your essential outgoings 

Separate essential payments from costs you could reduce or pause. Include both business bills and the household expenses your drawings normally cover. 

Build an emergency fund 

Set aside what you can, even if you start with a small regular amount. MoneyHelper describes three to six months of essential outgoings as a useful rule of thumb for an emergency cushion, although the right target will depend on your circumstances. Keep the money accessible and separate from the amount reserved for tax. See MoneyHelper’s emergency savings guidance. 

Create a cancellation and rescheduling process 

Decide how customers will be contacted, what your terms say about deposits and how you will prioritise postponed work. Clear terms and prompt communication can help protect customer relationships. 

Identify backup contacts 

Build relationships with trusted professionals who may be able to cover urgent jobs. Agree how referrals, customer consent, payment and confidentiality would work before you need help. 

Keep business information organised 

Maintain an up-to-date diary, customer contact details and clear job notes. Store them securely and follow data-protection requirements, but make sure you can access what you need if you cannot reach your usual workplace. 

Check what support may be available 

New Style Employment and Support Allowance may be available if illness or a health condition limits your ability to work and you have enough qualifying National Insurance contributions. Universal Credit may also be available to some people on a low income or unable to work. Benefits can take time to assess and may not replace your usual earnings, so check current eligibility rather than relying on them as your only contingency. 

Review your insurance 

Read your policy wording and check what is and is not covered. If you are unsure, ask your insurer or broker specific questions and keep the answers with your business continuity plan.

Where does sole trader insurance fit in? 

Sole trader insurance cannot prevent illness and standard business policies do not automatically replace earnings when you are sick. The right cover can, however, help stop other insured events from adding financial pressure when your cash flow is already stretched. 

Depending on your work and the policy you choose, relevant cover might include: 

• Public liability insurance: can cover legal costs and compensation if someone is injured or their property is damaged because of your business activities, subject to the policy terms. 

• Professional indemnity insurance: can cover certain claims arising from professional advice, designs or services. 

• Tools or equipment cover: can help with insured loss of or damage to the equipment you rely on to earn. 

• Personal accident insurance: where offered, it may provide financial support following specified accidental injuries. It is not the same as general sickness or income protection cover. 

The details, limits and exclusions vary between policies. Look for protection that matches the risks in your work, rather than assuming a policy called “sole trader insurance” includes every type of cover. 

A week off is not always just five days’ lost income 

For a sole trader, illness can mean missed revenue at the same time as business and household costs keep moving. Cancelled work, refunds, cover and catch-up time can push the total above the income you expected to earn that week. 

Calculate your own figure, build a financial buffer where you can, put a simple continuity plan in place and check whether your insurance reflects the risks you actually face. The aim is not to predict every setback. It is to give yourself more room to recover without your business taking a second hit.

Frequently asked questions 

Can self-employed people claim Statutory Sick Pay? 

No. Self-employed people, including sole traders, are not eligible for Statutory Sick Pay for their self-employed work. Depending on their circumstances, they may qualify for other support such as New Style Employment and Support Allowance or Universal Credit. Check current eligibility on GOV.UK. 

What happens if a sole trader cannot work? 

If no one else can deliver the work, income may stop while business and household bills continue. The sole trader may also have to cancel bookings, refund customers or pay for cover. Savings, a continuity plan, appropriate insurance and any benefits they qualify for can help manage the impact. 

How much emergency savings should a sole trader have? 

There is no single amount that suits everyone. MoneyHelper suggests three to six months of essential outgoings as a useful general rule of thumb. A sole trader should include essential household costs and fixed business expenses, keep tax savings separate and build the fund gradually if the full target feels out of reach. 

Does sole trader insurance cover time off work? 

Not automatically. Standard covers such as public liability, professional indemnity and tools and equipment insurance are designed for specific business risks, not general sickness absence. Some policies may offer personal accident or other optional cover, but terms and exclusions vary. Check the policy wording and ask what would trigger a payment. 

How can self-employed people protect their income? 

Start by knowing essential outgoings, building emergency savings and planning how customers and jobs will be handled during an absence. You can also investigate benefits and insurance designed for specific risks. No single measure covers every situation, so combining financial reserves, continuity planning and suitable protection is usually more resilient.

*Disclaimer – This blog has been created as general information and should not be taken as advice. Make sure you have the correct level of insurance for your requirements and always review policy documentation. Information is factually accurate at the time of publishing but may have become out of date.