Reasons for Needing Financial Help Whilst Self Employed

Running a business can be a time-consuming process, but being unemployed takes this and makes it much more difficult than ever before as the management of finances and taxes is completely up to you. To help you understand this, we will be providing you with insight into some of these financial aids that you can opt for to help cover your bills throughout 2021 when you are unable to work.

You Are Your Own Boss

Though this is a huge benefit for a large number of people being your own boss does of course come with its own challenges when it comes to financial stability, particularly during this time of ongoing uncertainty. With many people unable to work due to the lockdown restrictions implemented within the UK, there are several people unable to work and therefore seeking financial aid to pay bills until they can work again.

Down Seasons with Clients

In addition to needing financial help as a result of the pandemic, there is often a quiet season from time to time, depending on the industry that you are working in. As a result, some of those who are self-employed will require financial help as this will ensure that they still have some form of income throughout the quieter months in order to cover the bills.

Different Types Of Finances Available To You

When you are your own boss, you are responsible for applying for alternative finances in order to keep yourself afloat, but which of these is the best one for you? Though it may seem tempting to opt for a quick loan, this is a short term solution when combined with other financing options available. To help you out, we have listed the two finance options that are available to you below:

Employment And Support Allowance – This is an income payment paid to those that have applied for it every two weeks. This can be applied for by those with a full national insurance record for taxes and cannot be claimed by those that are already being paid a disability premium.

Universal Credit – Universal Credit can be applied for through the government to help you with the costs for your house as well as the children and caring responsibilities. This can be applied for by those that are collectively earning under £16,000 per year as a household.You could also apply for a loan while on Universal Credit to help alleviate your immediate financial situation.

How Much Can You Get From Each Payment?

Each of these payment options that you can apply for will give you a difference in each of the payments that you are making. With the employment and support allowance, those that have applied for this is typically between £74.35 a week with those under the age of 25 only having the £58.90 a week to cover the bills and the weekly food shop at this time. Alternatively, universal credit will allow you to cover all the cost of your bills without having to worry about money at this time.

With this in mind, there are several ways that you can begin to finance yourself even during this time of ongoing uncertainty. Which of these will you be paying for in 2021.

Financial Help Whilst Self Employed