Skip navigation

Gloucestershire Business News

Revealed: the obstacles faced by millions who work for themselves - NEW COMMENT

The Federation of Small Businesses (FSB) has released a list of 37 challenges facing the 4.8million self-employed people in the UK to explain why they are "fundamentally different" to employees.

The challenges include no sick pay, no employer pension contributions, inferior maternity pay and pensions, and putting their homes and family's livelihoods on the line to build their businesses.

The FSB list is in response to the proposed changes to National Insurance announced in last week's Budget.

FSB national chairman Mike Cherry said: "While setting yourself up in business can be incredibly rewarding and exciting, there are many risks and the government provides few safety nets.

"The risk that the self-employed face makes them fundamentally different to employees.

"This is why the proposed National Insurance tax grab on this group is an absolute kick in the teeth, just at a time when we need to create more entrepreneurs, not fewer.

"We called on the Government to think again and there is at least now a delay to allow ministers a rethink.

"They must come to their senses. Each and every item on this list shows just how different life is like for the UK's 4.8 million self-employed.

"The Government should be spending its time focusing on issues like these rather than picking the pockets of the UK's hard-working strivers."

Problems facing the self-employed include:

  • 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
  • No free eye tests from employers
  • Personal responsibility for legal liabilities
  • High cost of tax administration

What challenges would you add to the list? Email mark@moosemarketingandpr.co.uk 

Picture credit: pixabay

Readers' comments:

Peter Dulson: Interesting list, but the FSB and most self-employed commentators (including journalists and media people, many of whom are 'self-employed' and thus have a vested interest) ignore one vital point.

The clue is in the title 'self-employed'. The individual is both an employee and an employer.

Every benefit that is paid by an employer (and every liability, such as employer national insurance) could and should be allowed for by the self-employer.

Few bother. But then they complain when they don't pay themselves sick pay or holiday pay, implying that somehow the Government should pay them instead!

The Government doesn't pay holiday pay and redundancy pay and hasn't paid sick pay for about four years now.

There are some benefits from the Government that aren't paid to the self-employed, so these should be taken account of in the net rates of NIC paid by them - the present Government has done this and the rates are still very much in favour of the self-employed.

In my time, I have been employed, self-employed, part-time employed and semi-retired, so I think I know the system pretty well.

Please, stop the propaganda campaign or we'll end up with a Corbyn-led (or worse) bunch of comrades running the country for the benefit of their Militant (sic) supporters.

Related Articles

Versarien's revenues halve and losses rise Image

Versarien's revenues halve and losses rise

Forest of Dean-based advanced engineering group Versarien saw its revenues halve last year.

Gloucestershire company launches same-day service Image

Gloucestershire company launches same-day service

Gloucester-based Freemans Event Partners has launched a brand-new around-the-clock foodservice logistics offer.

Gloucester business expands at Elmbridge Court Image

Gloucester business expands at Elmbridge Court

Just three offices are now available for rent at Elmbridge Court, following the latest letting.

Cirencester town centre to deliver improved parking Image

Cirencester town centre to deliver improved parking

Better parking and traffic control improvements for Cirencester residents and businesses.

Copyright 2024 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.