Tag Archive | "gig economy"

75% of British Contractors Have NO Pension


The world of contracting in Britain is booming, and rightfully so, but not all contractors are very good at looking into the future it seems.

A new survey shows us quite clearly that around 3 quarters of self employed contractors in the UK have absolutely no pension at all. Pure madness if you ask me.

Not only that, but the survey also went on to find out that of those contractors that DO have a pension, over 50% of them have absolutely no idea how much is there.

If that isn’t bad enough, it was also discovered that 91% of contractors who pay into a pension only do so with 10% or less of their income. This could mean there won’t be enough cash to fund a retirement.

It’s no wonder that experts are predicting that many contractors are going to be forced to work well into their seventies, and even eighties. They just won’t have the funds available to put their feet up and enjoy a retirement. They will have to keep on working, probably full-time.

Why are freelance contractors so uninformed, and let’s face it, ignorant about the subject of pensions? The director of the company behind the survey thinks he knows the answer, and it is all to do with the gig economy.

“This year’s results highlight the pressures that are being exerted by the ongoing Uberisation we’re seeing in the UK’s employment market,” he said.

Maybe he is right or maybe he isn’t…but one thing I do know is that if you are self employed then you must make sorting out your pension a number one priority. If you don’t plan, then you plan to fail. Remember that.

Some of the pension options currently available to contractors and freelancers include a personal pension, a SIPP (self invested personal pension), a NEST (national employment savings trust), and a stakeholder pension.

Which is the best option for you? There is no definite answer as it depends completely on your own individual circumstances, and this is why I recommend you do some research.

For example, you could find out more about each type of self employed pension plan by searching the internet, and then once you are more informed, speak with an expert to delve deeper into the ins and outs of each option.

What I do know for sure is that relying on the state pension is a very bad idea. If you are planning on the government taking care of you in retirement then you might want to think again.

Instead, take matters into your own hands and get that private pension for contractors sorted out immediately.

Posted in newsComments (0)

UK Population “Optimistic” About Entrepreneurship


In a recent study it was revealed that people in the UK were more optimistic about working for themselves, compared to other European countries.

These findings are no doubt going to surprise many experts, who have long been claiming that factors such as Brexit will mean less British people decide to do things like start a business, become a contractor, and get started in the gig economy. Well, according to this study the opposite is true.

Out of those asked, 44% of people in the UK said it was the best country to go down the self employed route, with 57% saying they were optimistic about the economy.

This doesn’t surprise me at all to be honest, because despite all of the negativity we keep hearing about in the news, the reality of the situation is that many Britons are hard working, ambitious, and want to work for themselves…and many won’t let anything stop them.

Sure, Brexit might cause a few problems with the economy, and yes, nothing is ever perfect…but when you are determined to succeed then nothing can stop you, and it seems that many people in the UK have this mindset.

Something tells me we are going to be alright, this nation of ours, as long as entrepreneur’s, small business owners, contractors, freelancers…they all keep pushing forward and don’t let anything or anybody stop them.

What appears to be even more encouraging is that younger people are more interested in becoming their own boss, with 76% of 18 to 24 year olds saying this is their goal. Compare this to 48% of 50 to 64 year olds, and it’s easy to see why UK economy is only going to become stronger, no matter what happens in Europe.

That isn’t to say that everyone is in support of Brexit though, as the study found that many people do have some concerns about becoming isolated from our European neighbours.

For example, 30% wondered about what our access to the single market will be like once Brexit has taken place, which of course, is very important for anyone that wants to do business with a company in Europe.

Of course, we don’t even know for sure exactly how much Britain is going to leave the European Union, so it’s difficult to predict exactly what is going to happen.

Back to the study and it was found that the 2 main reasons for wanting to become self employed were financial success (48%) and freedom and independence (47%).

You know, I hear this a lot from all you contractors, freelancers and gig workers out there…you just want to make a decent amount of money, but most importantly, you want to be your own boss and set your own schedule.

Posted in newsComments (0)

Theresa May Advisor Criticises the Gig Economy


We all know the gig economy is becoming popular among contractors. However, a key advisor to the prime minister doesn’t like it at all.

Matthew Taylor, who is currently the future of work advisor to Theresa May has gone on record to say that the current gig economy is going to cost the government billions of pounds over the next few years, mainly because it means contractors and self employed people in general will be paying around £2000 less in tax a year.

How has he come up with this figure you might be wondering? It all comes down to companies such as Deliveroo and Uber, where many of the freelance contractors who work for these companies pay, on average, less tax than someone who is employed and earns the same amount of money per year.

This is no doubt why people, including many in the government, are questioning the employment status of workers in the gig economy, and saying that many times someone who is self employed should actually be employed.

Well, if they pay more tax then of course you are going to say that, as it means more money for the government.

If there is one thing the government doesn’t like it is losing out on money, and that is why I think we are going to be hearing more about the gig economy and the worker status of contractors and self employed.

We’ve already seen how the taxi app Uber have come under scrutiny recently, most notably where a judge decided that some of the freelance contractors working for them should be classified as employees instead.

Recent figures show that Uber now have 40,000 self employed drivers in the UK, but it makes you wonder how long they are going to remain this way.

I’m sure if Matthew Taylor or other people in the government have anything to do with it then it won’t be long until we see the vast majority, or even all of the drivers become employees, even if this isn’t what the drivers themselves want.

Interestingly, this is coming at a time when many well known retailers and companies are now starting to adopt the Uber style self employment model. Are they wasting their time though? Especially when so many people in power seem to want an end to this kind of gig economy.

Who knows, if it turns out that most people want to become a freelance contractor in a gig economy instead of an employee and they make their voice heard, then surely the government will have to stand up and take notice.

Posted in newsComments (0)

Ed Vaizey – “Minimum Wage for Gig Workers”


Tory minister Ed Vaizey has gone on record saying that freelance workers in the so called “gig economy” should be on minimum wage.

This of course comes at a time when the line between employment and self employment is not completely clear. Take the Uber situation for example, where courts are now starting to rule that their freelance drivers are in fact employed and should be guaranteed minimum wage.

I am going to disagree with Ed Vaizey here and for the simple reason that if you choose to be self employed then why should you be guaranteed anything? That is the chance anyone takes when they start a new business, go freelance, become a contractor or choose to be a gig worker, and if you don’t like the thought of it then get a job where you are guaranteed a wage. It really is as simple as that.

Uber workers knew what they were signing up for when taking on the role…a freelance position with an opportunity to potentially earn money…not a guarantee, and if you don’t agree with that then look elsewhere. If you want minimum wage then look elsewhere. Unfortunately, it seems people like Ed Vaizey just don’t understand this.

Instead, he has called for the government to give us a “definition of a new kind of worker in the gig economy” which he then went on to describe as a “halfway house” between being employed and self employed.

He’s wrong of course, and anyone with any kind of common sense can see this. Either you are employed or you are not. There is no halfway house.

If you are a contractor or freelancer benefiting from the gig economy then you are self employed, and the idea of a minimum wage is ludicrous.

As we all know though, many politicians are way out of touch with what is really going on in the world, especially the world of business, and once you give them any kind of power or input into the decision making process they have this amazing ability to get things completely wrong.

Once this happens, they hide away and try to pass the blame. It’s easy to call for minimum wage for gig workers like Ed Vaizey has, if you don’t have to take any responsibility when things go wrong.

The freelance world is now full of people who quit well paying jobs with companies like Google and Microsoft, in order to offer their skills in the gig economy, and are now earning more than before, while working less hours and living the kind of lifestyle they want to.

These people don’t need a guarantee of minimum wage, and if you do then I really don’t think being a gig worker is for you.

Posted in newsComments (0)


Your information will NEVER be shared
aweber

stay up to date:

our top 5 twitter posts

umbrella companies

umbrellacomps



twitter Join the conversation
Free Telephone Advice