Decision Makers Guide - DMG31110

Deciding if a person is a self-employed earner: Sickness

If a self-employed person cannot work due to long-term sickness, the decision maker should still consider whether self-employment continues. The decision maker should consider such things as
1) the type and set up of the business and
2) the length of the period of sickness.

Example 1

At the date of application, the applicant, a self-employed taxi driver, is not working because she has a broken leg. She will not be able to return to work for the next six months. The decision maker decides that as the applicant's business depends entirely on her ability to work, her self-employment has ceased and no earnings should be taken into account.

Example 2

The applicant is in partnership as a florist with two other people. At the date of application she has been off sick for three months, recovering from an operation. She is unlikely to return to work for a further three months. As the other two partners are still running the business, the decision maker decides that the applicant is still in self-employment.

The applicant produces earnings details for the three months before the date of application. She said that the income of the florist had decreased because of her sickness. The decision maker accepts these details as a more accurate reflection of her earnings.