HR · 13 March 2017

37 reasons why the self-employed have it worse than employees

shutterstock_597695168
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.


 
TAGS:

ABOUT THE EXPERT

Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.

From the top