Only 21% of self employed people are on track for a moderate retirement income – compared to 43% of employees, revealed the latest Hargreaves Lansdown HL Savings & Resilience Barometer. This means that the end of the tax year is a prime opportunity to try to set aside some extra money, if only by using tax-free ISAs to set aside future income and offset tax.

‘Life is tougher for the average self-employed person than their employed counterparts. Their average incomes are 14% lower, and as a result they have much less cash left at the end of the month,’ said Sarah Coles, head of personal finance, Hargreaves Lansdown.

‘In many cases, they also have to wrestle with the fact their income can be fairly lumpy, which can make it difficult to manage money in the short-term and plan for the long term.