According to Statista, “self employment in the UK has grown steadily, from a low of 3.2 million in December 2000 to a peak of over five million at the start of 2020. As of May 2024, there were around 4.28 million self employed workers in the United Kingdom”.
Statista also reveal that there have always been more self employed men than women with figures indicating there were 2.74 million men and 1.62 million women that were self employed. In 2022, over 1.3 million self employed workers were in the 45-54 age group.
Many self employed jobs require the completion of various training courses, depending on the type of labour, and it can be difficult to fund the training. The UK government provide ‘allowable business expenses’ which self employed workers can claim to help fund their training courses. There are also expenses for office, property and equipment, travel expenses, staff expenses and more to help self employed workers fund their business.
Where to Find Funding if You're Self Employed
There are various options available for self employment funding including bursaries, grants and scholarships that are provided by various organisations such as private companies, non profits, local charities and trade associations.
Here are some websites to help begin your search:
Developing new skills and knowledge for your business can improve your rates, expand your business services and increase the number of clients, but it can be expensive.
This is why being able to find appropriate self employed funding for training courses is so important, whether it is just the start for your business or you are looking to expand even further.
Research is vital to find the right funding for your business and most of these options are different to loans as you won’t need to pay back the funds in the future. There is most often an application process to complete with varying eligibility rules in which you must determine if your business fits the criteria to receive the funding.
There are different types of funding that depend on the type of training course you need. A grant may be most suitable for general skills online training as they offer more flexibility even though they are often smaller and still require eligibility criteria.
If your business involves a particular type of individual or company, there are also various scholarships and grants available designed for their specific support. This includes investments in certain areas of the country, supporting women in STEM, self employed workers with disabilities or disadvantaged young people. If your business applies to any, you can apply for training course funding.
Can You Claim Training Costs as Self Employed Expenses?
The UK government offers allowable business expenses for self employed workers who need to fund training courses. This can then be claimed as a tax deduction for self employed businesses.
This includes training which:
Improves knowledge and skills already in use for the business
Keeps up to date with the industry technology improvements
Develops new knowledge and skills due to industry changes
Develops new knowledge and skills that support the business – eg. Administrative skills.
However, you are unable to claim the training course expense for training courses that help self employed workers to start a new business or training courses that will help expand the business into new areas that are not directly related to the current business work.
Every tax year, self employed workers must fill out the self assessment tax return and this will include a section to declare your training course expenses to claim the tax deduction. Gov.uk recommends that you keep records as proof of all your training course costs and business expenses which will make it much easier to fill out the self assessment tax return. Proof is not required to be submitted with your tax return but records should be kept in case HMRC asks to see them.
If you are self-employed, you can also employ staff and can claim allowable business expenses from the UK government to help fund the staffs’ required training courses for the business as well as staff salaries, bonuses, pensions and more to help with the extra costs.
This ensures that you are able to receive appropriate training courses for your business to help it thrive and succeed for years to come.
Is There Any Help with Childcare Costs?
If you are self employed and worried about childcare costs, the UK government also provides various support for parents. Self employed workers are eligible for tax free childcare, the same as employed people.
HMRC have stated that “the number of Tax-Free Childcare users in families with at least one self-employed parent increased in October 2023, from 60,500 to 65,000, before decreasing slightly in November 2023 to 64,200, and falling again in December 2023 to 57,500.”
The eligibility requirements for tax free childcare depend on if you are currently working, the income you receive, the child’s age and immigration status. Children must be under 11 and parents can receive up to £2000 a year as the government will pay £2 for every £8 parents spend on childcare. Parents can receive up to £4000 a year if the child is disabled.
The tax free childcare is flexible which is ideal for self employed workers with unpredictable working hours. The payments can be used on childcare from nurseries, nannies, childminders, before and after school clubs and holiday clubs.
Training courses are an essential part of many jobs to keep up to date with the latest technologies and industry improvements. Self employed workers are able to receive funding for various training courses in many different ways including from the government, non profits and trading associations. There is also help with childcare costs available to ensure your business continues to succeed no matter the circumstance.
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