There can be many downsides to being your own boss
The Federation of Small Businesses (FSB) has published a list of 37 major challenges facing self-employed workers, and has urged the government to re-think plans to increase national insurance contributions (NICs).
Following the Spring Budget announcement on 8 March, the UK’s leading small business organisation has released the list in protest of the chancellor’s aim to change NICs, and to highlight the disadvantages self-employed workers face when compared with being a UK employee.
In a statement, the organisation’s national chairman, Mike Cherry, said that the government’s plan would put an added strain on entrepreneurs, which could damage the economy.
the risks that the self-employed face makes them fundamentally different to employees. Setting yourself up in business can be incredibly rewarding and exciting, but there are many risks, and the government provides few safety nets, said Cherry.
The controversial new measures have caused rifts in the Conservative party since the Budget, with several senior party decision makers, including a government minister, publicly rebelling.
Philip Hammond has received intense criticism, and prime minister Theresa May stepped in to announce the process of legislating the changes to NICs in parliament would be delayed until Autumn this year.
In his speech on 8 March, the chancellor announced that the nine per cent NICs self-employed people currently pay on any annual earnings above 8, 060, would increase to ten per cent in April next year and 11 per cent in April 2019.
we called on the government to think again, and there is at least now a delay to allow ministers a rethink, added Cherry.
they must come to their senses. Every item on this list shows just how different life is like for the UK’s 4.8m self-employed.The government should be spending time focusing on issues like these rather than picking the pockets of hard-working strivers.”
37 problems facing the self-employed
Insecurity/volatility of income
Poor access to mortgages
Having to risk their houses and personal income to build their business
No redundancy pay
No access to pensions auto-enrolment
No employer pension contributions
No maternity pay
No paternity pay
No adoption pay
No rights against unfair dismissal
No holiday pay
No right to notice
No sick pay
No compassionate leave
No carers leave
No employment rights in relation to discrimination
Poor broadband for homeworkers
Poor design of universal credit for changing incomes
Late payment from large businesses
Unfair contract terms from big business
Complicated regulation designed for big business
Poor access to training
Poor access to business support
No government savings products designed for the self-employed
Complicated upcoming quarterly tax reporting
Complicated reporting requirements for universal credit
Isolation of self-employed workers
Hard to access business credit
Poor protection from business crime
Poor protection from cyber crime
Poor access to the courts to settle legal disputes
Poor access to legal advice
No limited liability protection for the self-employed
No access to enhanced employer benefits, like income protection insurance
