My idea is important, because if we are to have small businesses helping to regenerate the economy, we need as little read tape, as few fines as possible threatening them, and distracting them from the business of earning a living, and making jobs for others. Find ways of encouraging small entrepreneurs with a carrot, not threatening them with a whip.
Building contractors must submit a monthly return to the 5th of each month, within 14 days. Late returns generate a £100 fine that is very difficult to appeal against, cannot be appealed against on line, and when errors are made, the £100 fines multiply each month.
This is legislation bearing a whip, rather than a carrot, and I am sure results in small contractors NOT employing sub contractors, for fear of all the paperwork, risk of making mistakes etc., and potentially crippling fines that may ensue.
The CIS laws are making criminals out of many hard working, self sufficient small builders. These laws and fines should be reviewed with haste, to prevent more and more otherwise honest small businesses vanishing below the radar, to avoid all the paperwork, risk of fines etc., that are in place now.
Another law that probably stops people registering as self employed, is the legal requirement to regsister within 3 months of start up. Most small ventures need longer than that to decide whether the new venture is worthwhile, or not.
The threat of fines for making mistakes disuades people from taking the plunge into self employment.