Tag Archive | "self-employed"

73% of Self Employed Called “Financial Underclass”


Many think self employment is all about living the high life. Not true. New research says that self employed are the “financial underclass.”

This research was compiled by a financial services company who obviously know what they are talking about when it comes to the subject of money, so it makes sense that we should all sit up and take notice about these findings.

The exact figure they came up with was 73% of self employed people, who, in their findings, are behind when compared to traditional employees in areas such as earnings and pension plans.

Delving deeper into the figures, we find that self employed typically have, on average, £200 or less of discretionary income a month when compared to full time employees, which isn’t exactly ideal now is it.

One media expert commented that this has a lot to do with the “Uberisation” of the employment market, where workers are basically being forced into self employment against their will and then stripped of any benefits that traditional employees enjoy.

While this can happen (and it does), in my opinion I reckon that many of the freelance type jobs offered by companies such as Uber are fair game and they are doing nothing wrong, but that is a subject I’ve covered fairly extensively here on this blog.

As for the point about 73% of the self employed being the so called “financial underclass?” Well, yes they are, and always will be, when you consider that around 95% of the wealth is controlled by 5% of the population.

However, that doesn’t mean you can’t become self employed or start a business and become very successful. In my opinion, forget about these kind of statistics and just focus on doing what you do best, and then making a lot of money doing it.

The one point I do agree on is that self employed people in general are not fairing very well when it comes to the subject of pensions, with many contractors, freelancers, and small business owners who have no kind of savings or private pension at all.

This is pure madness of course, and will ensure that there is an army of freelance workers who are still putting in the hours when they are well past retirement age. It’s unfortunate, but true.

Better education about pensions for self employed is the way forward, and although the government have made a few moves to resolve the issue, more still needs to be done.

Perhaps auto-enrolment pensions could be the way forward for our self employed workers? Maybe, but I think it could be difficult to implement, especially as more and more people are now working for themselves in the freelance, contracting, and gig economy.

Posted in newsComments (0)

Freelance Contractors Are a…”Security Risk” Says Expert


In the past you got a job and stayed with 1 company for years, but these days things are a lot different. Enter the freelance contractor.

They are self employed individuals who work for themselves and only take on the jobs they want to do, often to the highest bidder, putting them firmly in control of their careers.

It isn’t unusual for a freelance contractor to work for many different companies in the same sector, which has led to one expert claiming this is a “security risk.”

Not only that, but in a recent survey of business managers, 51% said they thought that freelance contractors were the weakest security link within the company.

I do agree to some extent, especially when you start to get into areas such as IT where important data is stored and you get freelance contractors coming in from the outside who are given access to this data, then there is the potential for things going wrong.

Who can forget about the recent incident involving an IT freelance contractor and British Airways? The airline company are claiming this 1 contractor single handedly brought down their entire system, causing chaos that lasted for days. Who knows for sure exactly what went on, but it just goes to show what can happen.

Things are not going to change though, and the one thing I do know is that the world of freelance contracting is going to get even more people joining the ranks over the next few years, with some pundits claiming that 40% of the workforce will be freelance contractors by 2020.

It’s a win-win situation, as companies get a flexible workforce that can be quickly downsized when required, while the freelance contractors have the ability to set their own hours and choose a schedule that suits them.

Unfortunately, things will go wrong from time to time, whether it is with a contractor breaching security or even passing on sensitive information to a rival company.

These kind of incidents do happen I’m sure, although I think freelance contractors are generally a good bunch who are focused on doing their best for any company they work for.

However, according to the expert, “when data is shared, it opens up the possibility of it being compromised by hackers.”

This is something I agree with, because as we all know, some of these hackers only need the slightest opening to gain access to a system, which is why, in my opinion, companies should be more educated about the risks involved when hiring freelance contractors and then taking the necessary steps to protect themselves.

One way is work out an automated system that restricts access to data, which means freelance contractors only see the information that is needed to complete the job.

The only downside is that coming up with these kind of systems can be complicated and expensive, but once in operation all of their data becomes a lot more secure.

For now though, freelance contractors are still a “security risk,” although companies around the UK will still want to hire them for important projects.

Posted in newsComments (0)

Government Scrap Tax Grab, Admit Defeat


If you read this blog every week then you will no doubt remember how I reported on the cheeky tax grab the government tried to bring in at the budget.

The Chancellor, Philip Hammond, announced to the country he was going to tax the self employed whether they liked it or not. Well, millions of hard working Brits didn’t like it, and after a national outcry that no-one in the government expected, the Chancellor quickly back tracked on his plans.

At the time I mentioned how this was a victory for contractors, freelancers, small business owners, and self employed people all around the country, although I hinted it might only be a small victory, because no doubt those politicians would have another go in a few months.

It doesn’t seem that way now though, as the government recently admitted defeat on their unpopular tax grab, with Deputy PM Damien Green saying that it won’t be revisited.

Something tells me the Conservatives poor showing at the recent General Election might have a lot to do with this back track, as they make an attempt to get the millions of self employed people back on their side.

Rightly so if you ask me. Politicians seems to forget that it’s self employed contractors, freelancers and small business owners that prop up this fragile economy and keep everything running smoothly.

When it comes time to cast their vote many don’t forget how they have been treated by the government, and it’s no wonder that a lot decided to stay away during the recent General Election, or even vote for another party.

In my opinion, the Prime Minister and her cabinet really need to sit down and work out ways they can do more for our nations self employed army, rather than just looking at them as a way to make more money every time they need to get some cash.

Let’s face it, with Brexit just around the corner the self employed are now more important than ever before, so let’s hope they keep their word this time and we don’t hear any more talk about tax hikes.

Right now, as we speak, it’s estimated that 5 million people in the UK are classed as self employed, which is around 15% of the workforce.

However, with the gig economy continuing to get more popular and the freelance lifestyle something that a lot of people want to have…then it’s not surprising that many experts are expecting nearly half of the workforce to be in some form of self employment in 10 years time.

So when you consider that many of the voters in upcoming elections will be self employed, then it’s about time politicians started catering to their needs. Dropping the tax hikes is a good start.

Posted in newsComments (0)

Only Digital Banking Please…We Are Self Employed


Do you ever get tired of cashing cheques and paying in money at your local bank? A digital banking company might just change that.

They are called Revolut, and so far have been a big success in the consumer banking market. Now they are eager to move into the business arena, with self employed people such as contractors, freelancers, gig workers and small business owners right at the top of their list.

So far, 12,000 businesses have signed up for the digital banking service offered by Revolut, and if reports are to be trusted this includes a few FTSE 100 companies.

You don’t have to be a big business doing millions of pounds a month to use Revolut though…it is open to any self employed person that wants to move their banking into the 21st century.

The service starts at only £25 a month, and then moves all the way up to £1000 a month depending on how much you are banking with them and what kind of customer benefits you receive. You get the first month for free to give it a try.

Once signed up, you get a business banking card that can be used in 25 different currencies and has no fees when used. Not a bad deal if you ask me, especially if you do a lot of business with clients and companies from abroad.

Traditional banks often take high fees for themselves if you receive money from abroad, and this usually comes with a terrible conversion rate. It appears that Revolut might just be the alternative option that self employed people in the UK have been looking for.

Not only that, but when you consider that most contractors and freelancers these days get paid online without any cash or cheques, then it’s easy to see why digital banking is now a viable solution.

The founder and CEO of Revolut, Nik Storonsky, had this to say…”I have great confidence that Revolut for Business will experience the same demand as our consumer service has.”

I’m sure it will Nik, and many experts agree with me, with some commenting that Revolut for business is a game changer.

Also, I’ve heard from some insider sources that Revolut are planning to use this as a springboard to get into mortgages and loans for the self employed.

This is definitely an area that is currently being under served, with many freelancers, contractors, gig workers, and small business owners out there who just can’t get the finance they need, despite making a decent amount of money every month.

Let’s wait to find out what happens with the mortgages and loans, and of course, with this new digital banking service. Something tells me it is going to be successful and we will hear a lot more about Revolut in the coming months.

Posted in newsComments (0)

Deliveroo Fight Back With Pay Per Delivery for Drivers


The takeaway delivery company Deliveroo have been in the news a lot recently, mostly being accused of hiring employees under the guise of “contractors.”

One of the arguments being used against Deliveroo is that in some cities they do pay drivers or couriers by the hour, typically getting a set rate and then £1 per delivery, which means in many people’s opinion this makes them employees and not contractors.

Not content to just sit back and be attacked in the press, Deliveroo have decided to hit back at their critics, by bringing in a new pay structure for their self employed drivers.

What they have come up with is a pay per delivery structure as an option for all workers. Last year Deliveroo actually tried to make this mandatory for everybody, but it now seems to be voluntary.

Will many workers take up this new pay structure from Deliveroo? Probably not. While some drivers appear to be okay with being classed as a contractor and self employed, there are many that want full employee rights. Thousands protested last year, and there is expected to be protests this year.

I just think that if these drivers took the job on the understanding that it was a self employed position, then what are they complaining about? If they want traditional based employment where they are classed as an employee then go to another company. It really is as simple as that, but of course, many don’t want to listen.

Interestingly, after a bit of testing Deliveroo have said that the Pay Per Delivery structure, on average, earns their drivers £12 an hour, while those on the hourly based structure only get around £9.50 an hour.

£2.50 extra per hour and a lot of drivers are not interested…it really does make you wonder if some of these workers are actually interested in “working” or if they just want to get a cushy job with an hourly rate where they do the bare minimum.

Drivers who use Pay Per Delivery also have the ability to see orders as they come through the system, and have the option to reject any deliveries they don’t want to make. Sounds like a good deal if you ask me.

Also, let’s not forget that contractor drivers who work for Deliveroo also get flexibility in when they work and for how many hours. This means some weeks they might only do 20 hours, while others it could be 70 hours. They can work around their schedule and lifestyle rather than the other way round.

I’m sure we haven’t heard the last of Deliveroo in the news or the employee versus self employed debate.

Posted in newsComments (0)

New Figures Suggest 176,000 Self Employed People in Wales


Wales is quickly becoming the UK hub of self employment, with 176,000 now working for themselves. That is 32% of new jobs in the country.

Many of these people are no doubt contractors, freelancers, and gig workers, while others have taken the route of starting a small business in order to make their own income.

Take Tom Maunder for example, a car body repairer from Wales who had been made redundant 3 times. After getting his P45 for a third time he decided enough was enough, and instead of looking for another job went the self employment route instead.

Actually, he ended up buying the small company from where he had been given his walking papers before, thanks to a loan from his parents and a bit of savings.

This is the type of entrepreneurship I like to see among workers in the UK. Many people in Tom’s position could have simply given up and spent the next few years signing on down the local job centre, and this is what many people do.

However, Tom decided that if employers were not prepared to give him a chance then he might as well make his own opportunities, and that is why he has gone on to be a success, with help from his family along the way.

It just goes to show that self employment in Wales is still going strong, and as long as there are people like the Maunder family then I don’t think anything is going to change soon.

Around 1 in 5 new jobs in Wales are to do with self employment, whether it be contractors, freelance professionals, or small business owners, and it wouldn’t surprise me at all if in 10 years time this figure is 2 in 5 jobs…or even 50% of all new jobs.

The new figures do show that the area in Wales does matter when it comes to self employment, with towns that have historically been involved with industry having the lowest rate of people working for themselves, while areas that are more known for farming have the most.

In Powys it is said that 1 in 3 people are self employed farmers. Also, many of these rural communities in Wales have other businesses such as cafes, restaurants, and hotels, where the self employed do a great trade year after year.

Away from the town and villages we have the cities of Cardiff and Swansea, which are quickly making a name for themselves as the place to be in the UK if you want to work in freelance industries.

The cost of living in these cities in Wales is significantly lower than places like London and Birmingham, which means many gig workers are thinking about relocating to Wales.

So self employment in Wales is looking good, and things are only going to get better if you ask me.

Posted in newsComments (0)

Over 15% of Workers in Harlow are Self Employed


According to a new survey, one in six workers from the town of Harlow in Essex are classed as self employed, with many of those being contractors.

It just goes to show that even in smaller towns around the country self employment is in full swing, where a lot of people are now deciding to get rid of a boss and start working for themselves.

Interestingly, there was similar survey conducted in Harlow around 10 years ago, where at that time the self employment percentage was below 10%. It makes you wonder what the figure will be in another 10 years time? My guess would be at least 25%.

Of course, you get more self employed workers in big cities such as London and Birmingham, but that is where a lot of contractor and freelancer jobs are to be found.

In places like Harlow the amount of opportunities is not on that kind of scale, but things are improving, especially now the internet has made it possible to work from home without having to commute to an office or place of business.

I’m sure that many self employed workers in Harlow have contracts and jobs from some very big companies, it’s just they don’t have to make the move to London in order to make a living, although some contractors might commute to the capital I’m sure.

Other towns in Essex have also witnessed a boom in the number of self employed workers. Take Colchester for example, where 10 years ago the number of people working for themselves was at 8,800. Fast forward to the present day, and according to the survey there is now 15,500 people who are classed as self employed.

Epping Forest has the most amount of self employment in Essex though, with 22% of the people there being classed as working for themselves.

There is also no doubt many public sector contractors based in the towns of Essex, although I’m sure that many of them are not impressed with the recent IR35 changes.

If reports are to be trusted, then a lot of contractors in the public sector are going to be leaving soon…following the thousands who have already packed their bags and gone elsewhere.

The good thing about self employment, either in Essex or anywhere else in the country, is that there is just so much opportunity.

As long as you have some determination and a desire to succeed, then there are many different potential avenues to pursue, whether it’s as a contractor, freelance professional, gig worker, or small business owner.

Posted in newsComments (0)

Sky News Sued by Freelance Photographer


A freelance photographer by the name of Eddie Mitchell isn’t afraid to take on the Sky Broadcasting Corporation, after it was announced he was suing them.

Eddie had given permission to a firefighter to use a picture he took of a building fire in Bognor Regis. This picture was then published through the Midhurst Fire Service official Twitter page.

Not long after the Tweet was published, Sky News, the popular UK news channel and website embedded the tweet in a related story about Storm Angus, and of course, it seems that this also included the picture that was taken by Eddie Mitchell.

This wasn’t acceptable to Eddie, who said that Sky News never did contact him for permission to use the picture. Because of that, he decided to take the matter to court and sue Sky News.

Worthing County Court to be exact, where he said in a statement that he did give permission to the Firefighter and his station to use the picture, but NOT to Sky News.

A spokesperson for Sky News has gone on record to say that they have “very strict policies and always seek permission when necessary” when using pictures from social media sites such as Twitter.

The news story which contained the copyrighted picture from Eddie Mitchell has since been removed from the Sky News website.

Who knows exactly what happened here, and I’m sure that Worthing County Court will look at all of the evidence and come to a conclusion on what should happen next.

The one thing I do know is that we are going to be hearing a lot more about this type of thing, as freelancers and contractors believe their work has been used illegally and without their permission.

It’s not always exactly clear what is and what isn’t copyright infringement though, with many companies and news outlets arguing that embedding a link to a tweet, or using a screenshot of a tweet that contains a copyrighted picture should be fair use.

In my opinion, more needs to be done to clarify the law around the subject of copyright, especially when it comes to social media.

Sure, freelancers and contractors deserve recognition for their work, as well as being paid their dues, but at the same time, when sharing a Tweet or Instagram post is as simple as clicking a button on your phone, then maybe unintended copyright infringement is going to be almost inevitable

Ultimately though, Sky News are in the business of getting website traffic to their news stories and profiting from that, and any use of pictures or other third party content should potentially be compensated.

Posted in newsComments (0)

Contractors to Finally Get Paid on Time…Maybe


I reported right here on this blog about how contractors spend an average of 20 days a year chasing clients for late payments. Sometimes they never get paid.

This led the government to step in and announce they would setup a special branch that is focused 100% on making sure contractors, the self employed, and small business owners get paid on time.

To be honest I doubted if they would actually go through and take action, but it looks like they have.

From last week, all large companies and limited liability partnerships will now have to share details of their payment practices with the government, and if they don’t, then they can expect to get punished and even be put out of business.

Not only that, but contractors who are finding it difficult to get paid by clients can go directly to the government to get things sorted.

Why are the government stepping in now? Well, I think they have just realised how much of a problem late payment is…with one report suggesting that self employed workers in the UK are owed £26 Billion pounds in overdue payments as we speak.

That is definitely not small change, and if big companies keep getting away with not paying contractors the money they are owed then it could start to become a real problem for the economy.

If the government don’t take action then it might lead to an economic meltdown, not something we want as Britain leaves the European Union.

The main information that large companies are now required to share is their average payment time for invoices. If they are taking too long then a government official will be demanding to know why.

Right now, it is only companies who have a turnover over 36 million a year or a balance sheet of over 18 million that will have to report on details of their payment practises, but as time goes on I think that smaller companies might have to do the same as well.

This ensures that contractors get paid on time by all of their clients, and they can even check to see the payment record of a particular company before agreeing to work with them.

Will this completely stop late payments for contractors though? Unfortunately not, as there is always a few companies that try to game the system and get around the rules.

Also, it remains to be seen if the government actually enforce the rules and punish companies that don’t pay contractors on time. They might take action for a few months to grab some headlines, but then start to ignore it after a while.

Hopefully this won’t happen, and contractors can finally get paid the money they are owed. At the end of the day, £26 Billion pounds owed is just way too much, and something needs to be done about it.

Posted in newsComments (0)

UK “The Worst” for Self Employed Pensions


A team of pension experts recently took to the streets of 15 countries around the world and their findings were not exactly surprising.

Out of the 15 countries across Europe, Asia, the Americas and Australia, it was the UK that was ranked “the worst” for how many self employed people had their pensions sorted out.

Regular readers of this blog will be only too aware about how I’ve reported that many contractors, freelancers, and small business owners are just not educated enough about self employed pensions. Unfortunately, they are going to find out the harsh truth when they get to retirement age.

Looking at the numbers, the team of pension experts were shocked to discover that only 52% of the 4.2 million self employed people in the UK did not have any kind of independent pension. So that is a lot of people that have decided to rely solely on the government State pension, which in my opinion, might not even be around in 20 years time.

Compare this to an average of 36% that did not have a pension across the other 14 countries, and it becomes clear that in the UK we really need to push the message across to every self employed worker out there…

“You need to get your pension sorted…ASAP!”

I’m sure this is what they have been doing in India where only 12% of those surveyed mentioned they had no plan for a retirement pension. So that is 88% who have really got their act together it seems. Well done India. UK take note.

Actually, one of the main reasons why India are so clued up when it comes to the subject of independent pensions for the self employed is because they have no welfare system like here in the UK.

The same can be said for Brazil, China and Turkey as well, where the majority of those surveyed said they were actively saving into a pension.

However, the same can’t be said about countries similar to the UK that also have a welfare system, because France, Spain and Australia only did a bit better than over here, with many clueless about what to do for their retirement.

One thing I do know is that the team of pension experts must have been baffled when roaming the streets of the UK and talking to the self employed people of our nation.

I can imagine the look of bemusement on their face as…

Only 10% of those who have a retirement plan had it written down.

56% said I don’t have any kind of plan.

52% expected to be working past the age of 65.

49% said they plan to rely on the State pension from the government.

My advice on this, if you are self employed and don’t have any kind of plan for retirement and your pension…get it sorted as soon as possible. It really is the only way, because you don’t want to be still working when you are 75, or even 80.

The government are thinking about bringing in some kind of auto enrolment scheme for the self employment, similar to what they have in many companies for employees. Although it might be a while until we see that happen.

For now, you really need to take control of your own situation.

Posted in newsComments (0)

27% Leave School With No Career Advice According to Study


Just over a quarter of Brits leave Secondary school without any kind of career advice…that is according to a new study of over 2000 adults.

This has led to a whole generation of school leavers who are unsure of the career path that is right for them, with many deciding to stay in higher education rather than joining the workforce.

It might also be part of the explanation why so many people are now joining the ranks of freelancers, gig workers and contractors, because instead of going right into a career, they now take the time to explore different options before finally deciding that working for themselves is the best way forward.

The study also went on to give us some more interesting statistics, such as:

29% of workers are considering a career change soon, with self employment being high on their list of options.

Only 10% of those surveyed believed the career advice they did get in school was impartial, with many having the opinion that teachers and other staff were biased towards certain professions.

30% did know the career they wanted to pursue when leaving school, although many do change their mind after a few years in the workforce…with freelancing and contracting being good alternatives once they become dissatisfied with their boss.

A further 45% mentioned that teachers were often pushy towards getting students to go towards a career that required a university education, despite the fact that university fees have become way more expensive in recent years. This has led some people to wonder if teachers get a commission for recommending this path.

42% also said that parents were supportive of their career path, even if they decided to change course after a few years and go into something else like self employment.

My opinion on all of this is that career advice in schools is going to become less and less relevant, as students decide to educate themselves on what career path to pursue.

Thanks to the internet, it’s now possible to research potential careers and university courses by themselves, rather than having a teacher giving the information.

Also, I think we are going to be seeing more people wait longer until they make a decision about their career.

Years ago, you were expected to know exactly what path to take by the age of 18. These days, people are waiting longer, with many deciding to go travelling and experience the world before making a decision

It’s not uncommon for a 25 year old to still be considering career options, with freelancing, gig working, and contracting being popular options once they do decide to enter the workforce.

Posted in newsComments (0)

Bank of Ireland to Introduce Mortgages for Contractors


I’ve said it before and I will say it again…getting a mortgage if you are a contractor is tough. Most people who apply are declined, that is the reality.

Fortunately, Bank of Ireland, UK Division, want to change the way self employed people and contracting professionals are seen by the mortgage industry, and that is why they have just announced a new financial service in the marketplace.

This new mortgage service by Bank of Ireland is tailored towards self employed contractors who have been doing business for at least 12 months and have current contracts and bank account statements to verify they are earning an income.

What I have been hearing from industry insiders is that Bank of Ireland will be lending up to 90% LTV, with a minimum contracting income of £50,000 and affordability that is based on 80% of a contractors income. This has yet to be confirmed by the Bank themselves though.

While it is good to see Bank of Ireland getting into the contractor mortgage market, there is still many banks and lenders out there who don’t want anything to do with the self employed. This is despite millions of people in the UK who are now their own boss, and in many cases earn more than people who have a “traditional job.”

Yes, I do understand that mortgage lenders want to reduce their risk and only lend money they are reasonably sure can be paid back, but at the end of the day, contractors, freelancers, and the self employed in general are becoming more and more common, which means I think they have to start standing up and taking notice.

The Bank of Ireland, UK Division, have decided to do it, but how many well known banks and lenders are going follow suit? I think it could be a while until we see big brands offering mortgages to contractors on a regular basis, although at some point they will have to start taking notice as more people check the self employed box when filling in that mortgage application.

My only thought about this new mortgage service from Bank of Ireland is that 12 months trading history might not be enough time to really get a good idea about the suitability of a client.

In my opinion, 5 years is a much better indication of whether or not someone has the right income level for a mortgage or loan.

If you start making mortgage loan decisions based on 12 months worth of income in the contracting world, then we could be taking a step backwards if you ask me…back to the days when getting a mortgage was easy and lenders were approving people like money was going out of fashion.

What we are looking for here is a good balance. Easier for legitimate contractors with a good track record to get a mortgage, but no so easy that anybody with a few months of income can get a mortgage. There needs to be common sense.

Posted in newsComments (0)

Hammond Does U-Turn on Tax Grab


Just like I reported about last week, the Chancellor Philip Hammond went after the self employed in his budget with a tax grab, and many were outraged!

So much so that it now looks like Mr Hammond has decided to do an amazing U-Turn on his initial plans, in a move that we have never seen before from a UK Chancellor.

In a brief letter that was sent to all Tory MPs (I reported how many back benchers were not impressed by the tax grab plans), the Chancellor said that he would no longer be making Class 4 National Insurance payments more expensive for the self employed.

The right thing has been done of course, but it does raise some questions that need answering.

Firstly, how on Earth did they think doing a tax grab was a good idea in the first place? Just like I said last week, it was another slap in the face for our nations self employed. It’s almost as if many people in the government don’t have a clue.

Secondly, does the Chancellor have no conviction at all in what he is doing? To do a U-Turn so soon after the Budget really has made a lot of people wonder if this guy is even up to the job. The UK could soon become a laughing stock…it probably already is.

I didn’t agree with his decision to do the tax grab (and that does make me question his qualifications for the job), but what really makes me wonder about the Chancellor is the fact he was so quick to give in.

Sure, it’s good that you are willing to listen to other people and take on board feedback, but sometimes you have to stand behind your decisions. I think this was one of those times for Philip Hammond.

Other world leaders will no doubt be looking at this and noting down that the UK are potential easy targets when it comes to the negotiation table.

I’m not saying that Philip Hammond should not have backed down and gone away from his initial plans…but I think he did it way too quickly, and like mentioned before, with no real conviction is what he was doing.

Anyway, it’s good to see that self employed people are not going to be subjected to this tax grab, but in my opinion it really doesn’t change anything.

Contractors, freelancers, gig workers, small business owners…they need to be rewarded for what they do for the economy, especially when you consider that Brexit is just around the corner where the UK will be leaving the European Union.

These are the men and women that the government want on their side, but what are they doing to achieve this? Not a lot if you ask me.

Posted in newsComments (0)

Tories Say No to Tax Grab on Self Employed


It’s that time of the year again…The Budget with Chancellor Philip Hammond, but some experts are predicting there could be a tax grab on the self employed.

This has led many Tory backbenchers to say enough is enough, and to remind Mr Hammond that constantly going after the hard working contractors and small business owners of this country just isn’t on at all.

One report suggests this years Budget could see National Insurance Payments targeted, with the self employed having to pay 3p in the pound more.

In my opinion this is just a blatant tax grab by Philip Hammond, and is in line with the usual “go after the self employed” tactic when they need to raise some extra money.

How about doing something good for those people who are keeping your economy propped up Mr Hammond? No of course, it’s always tax, tax, and more tax.

Right now 20% of the UK workforce are considered to be self employed, and with Brexit on the horizon these people are going to be more important than ever before.

The last thing the Chancellor wants to be doing is getting them angry…wouldn’t you agree? It’s the same old story though, and I’m sure the 3p change will be announced tomorrow.

It was only a few weeks ago that the Prime Minister, Theresa May, announced in a speech that small businesses, and the self employed in general, are more important than ever before.

Well, it doesn’t seem that Philip Hammond listened to that speech, he was probably too busy working out ways to get every last penny out contractors, freelancers, gig workers…you name it, they are all on his list.

To give you an idea of what this would all mean for the self employed, if you currently make 40,000 pounds a year, then expect an extra 80 pounds on top of what you already pay in tax and National Insurance.

Surely, the government should be looking at ways to encourage people to start out in business and begin working for themselves, and not trying to grab every last penny they can? I don’t think this has even occurred to them.

So now we are in a position where everybody will have to wait until tomorrow to find out exactly what the budget holds for self employed people. Who knows, maybe the Chancellor won’t move forward with this tax grab? Something tells me he will though.

Posted in newsComments (0)

Contractors Spend 20 Days a Year Chasing Late Payments


According to IPSE, the Association of Independent Professionals and Self Employed, if you work for yourself then you spend 20 days a year trying to get paid.

It’s bizarre if you ask me…when you consider how easy it is now for companies to pay contractors for their services with options like Paypal and bank transfer, I just can’t work out why so many self employed people are having problems getting the money they deserve.

Apparently, it’s mostly big companies that are not paying out, which doesn’t surprise me one bit, because if there is one thing we all know it is that some of these multi national companies can be a real hassle to deal with.

Everyone you speak to just wants to send you to another department, constantly trying to pass the blame. Maybe you can relate to that one if you’ve ever done some contracting work for a big company before? You couldn’t make it up how difficult they are to deal with at times.

The research by IPSE also went to point out that this 20 days a year we all spend chasing up payments equals about £16.5 billion in lost income. This is just plain madness and something really needs to be done about it…pronto.

Well, we might be seeing action taken soon enough, because it appears that people in high places have been taking notice of how big companies are treating the self employed, and if things go to plan then late payment could soon be a thing of the past.

Just imagine how much more cash you could make if you didn’t have to spend 20 days of your year chasing up companies that make billions, but can’t to seem to pay you what they owe? If the small business minister, Margot James is to be believed, then by April of this year all big companies and Limited Partnerships will have to check in twice a year with information about their payment practices.

In other words, if they don’t pay you, then the government are going to be asking why. One of the numbers that is going to be looked more closely at is the average amount of time it takes to pay invoices, and if it is too long then they can expect a fine.

I’m sure this is going to mean that contractors finally start to get paid quicker for their work, it is just a shame that it had to come to this…don’t you agree? What a sad state of affairs when the government needs to step in and say “pay people for the work they have done.” It’s almost as if these big companies expect people to work for free. Some times I think they do.

Nearly 5 million people are currently self employed in the UK, and with virtually nothing being done right now to ensure they get paid, this new move by the government is much needed.

Posted in newsComments (0)

Research Shows Self Employed Work 10 Hours Less


If you thought working for an employer was the best option then it’s time to reconsider, as new research shows self employed people work 10 hours less a week.

Not only that, but the research also shows that they make £5000 more per year than the average salary, bringing in £33,000 a year compared to £27,000.

This includes umbrella contractors of course, and it doesn’t surprise me one bit as I’m always hearing stories of people who quit their job to become self employed and are now making more money working for themselves.

These statistics were all taken from the “definite study of the self employed” where 5,010 people in the UK were surveyed. Of those asked, 67% commented they were now better off financially now than when working for a boss, with 65% saying they now have more time to do the activities they want.

I’m sure they do, because when you think about it, if self employed people work 10 hours less a week, then based on a 5 day working week that is an extra 2 hours a day. Who wouldn’t want that? It’s much better to be spending time with family and friends rather than sitting at an office desk or being in traffic on the way home.

It’s also worth noting that many self employed people do work from home, or are at least based from home. This means that the commute is often no longer there, which means the time you save from working for yourself might even be more than 10 hours a week.

So why are more people than ever before starting to look at becoming self employed? When asked in the survey, 77% said they wanted more control of their work day, while 65% said the thought of being their own boss was something they liked.

Interestingly, 47% mentioned that lack of workplace politics was a motivating factor. This is something that I hear a lot, as it seems that many companies are now more like a high school drama than a place of work.

It’s much better to work on your own in my opinion, although this isn’t something that appeals to everyone. Some people would prefer to have the office politics I guess, and if that is your thing then becoming self employed might not be for you.

Although the research does show that self employed people work, on average, 10 hours less a work than people who have a job, don’t forget that it is not always like this at first. When you start working for yourself you might have to work more hours, so make sure you are aware of that.

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