Freelancer – Self Employed or PAYE?

Imagine, I am unemployed but want to work so I decide to start my own business. I don't have much money so can't incur overheads but I do have some skills so I approach some businesses and offer my services as a freelancer. I am happy to take on odd days work/projects and start building my business. Once I have some cash I can invest and expand but hang on there is a problem, no one will give me any work even though they want to? Why, because:

  • HMRC might class me as an employee and want the business to operate PAYE, leaving the business with a large future potential liability
  • As a new business it is a struggle to prove that you should actually be treated as self employed. I don't own lots of equipment, employ staff, work for lots of other customers (yet) etc.

A solution:

When you become self employed you currently have to register with HMRC. In return you should get the self employed equivalent of a company number perhaps with the safeguard of an industry category you can operate in. This could then be checked by any business you worked for and they would know there would be no comeback years down the line.

Ideally the newly self employed would also get support along with checks to ensure they kept correct records etc.

Why is this idea important?

Imagine, I am unemployed but want to work so I decide to start my own business. I don't have much money so can't incur overheads but I do have some skills so I approach some businesses and offer my services as a freelancer. I am happy to take on odd days work/projects and start building my business. Once I have some cash I can invest and expand but hang on there is a problem, no one will give me any work even though they want to? Why, because:

  • HMRC might class me as an employee and want the business to operate PAYE, leaving the business with a large future potential liability
  • As a new business it is a struggle to prove that you should actually be treated as self employed. I don't own lots of equipment, employ staff, work for lots of other customers (yet) etc.

A solution:

When you become self employed you currently have to register with HMRC. In return you should get the self employed equivalent of a company number perhaps with the safeguard of an industry category you can operate in. This could then be checked by any business you worked for and they would know there would be no comeback years down the line.

Ideally the newly self employed would also get support along with checks to ensure they kept correct records etc.

Enterprise Zones for Self Employed

 






Councils are lacking in both money and ideas that encourage enterprise. They are not entrepreneurial by nature and do not understand the needs of small business and the self-employed.

 

In the UK we have plenty of talented and creative individuals capable of growing businesses and plenty of empty commercial premises. I would like to suggest that a nationwide enterprise task force is set up that is most importantly staffed by people from a business background who understand the needs of the self-employed.

 

If the task force had special powers to create enterprise zones within local communties those participating could be protected from interference from red tape and conditions could be created that allowed eneterprise to thrive.

 

The scheme would be about local regeneration, rebuilding pride in the community but at the same time be a strong national movement supporting and demonstrating what the strengths of the UK are and aiming to build businesses that have potential to grow.

 

The enterprise zones would be controlled areas guided by rules set up to allow business to thrive, those participating in the scheme could team up exchange and share skills. The areas could be free of normal legislation and special insurance schemes could devised so that all invoved would be protected. There could be shared exhibition facitilies, retail outlets and other shared facilites. Business angels could be invited to paticipate,  importing agents could be encourage to visit and advise.

Big business could be encouraged to support the scheme financially as there would be prestige associated with potential success and benefits to them in many other ways.

The whole scheme could be celebrated and publicised by the media and become inspirational to those who are unable to find employment.

 

 

Why is this idea important?

 






Councils are lacking in both money and ideas that encourage enterprise. They are not entrepreneurial by nature and do not understand the needs of small business and the self-employed.

 

In the UK we have plenty of talented and creative individuals capable of growing businesses and plenty of empty commercial premises. I would like to suggest that a nationwide enterprise task force is set up that is most importantly staffed by people from a business background who understand the needs of the self-employed.

 

If the task force had special powers to create enterprise zones within local communties those participating could be protected from interference from red tape and conditions could be created that allowed eneterprise to thrive.

 

The scheme would be about local regeneration, rebuilding pride in the community but at the same time be a strong national movement supporting and demonstrating what the strengths of the UK are and aiming to build businesses that have potential to grow.

 

The enterprise zones would be controlled areas guided by rules set up to allow business to thrive, those participating in the scheme could team up exchange and share skills. The areas could be free of normal legislation and special insurance schemes could devised so that all invoved would be protected. There could be shared exhibition facitilies, retail outlets and other shared facilites. Business angels could be invited to paticipate,  importing agents could be encourage to visit and advise.

Big business could be encouraged to support the scheme financially as there would be prestige associated with potential success and benefits to them in many other ways.

The whole scheme could be celebrated and publicised by the media and become inspirational to those who are unable to find employment.

 

 

Euro Gravy Train

The Self employed of this country work very hard for themselves and for this country in the form of taxation.

I am 48 years old and have continually witnessed wastage and theft of the British taxpayer by the European Union. It is bad enough to have discovered the various ways that public money is squandered by local councils but to  see just how much money is poured into schemes by the E.U. with no accountability (literally) is the last straw. I am expected to fill in a tax return at my own expense and account for every receipt no matter how small.The MP's of this country do not have to do this and neither do the so called Euro M.P.s

I therefore believe that through the 'Freedom Bill' we have to abolish the European Communities Act of 1972 and 1973 and free the taxpayer of the worst excesses of fiscal abuse.

Why is this idea important?

The Self employed of this country work very hard for themselves and for this country in the form of taxation.

I am 48 years old and have continually witnessed wastage and theft of the British taxpayer by the European Union. It is bad enough to have discovered the various ways that public money is squandered by local councils but to  see just how much money is poured into schemes by the E.U. with no accountability (literally) is the last straw. I am expected to fill in a tax return at my own expense and account for every receipt no matter how small.The MP's of this country do not have to do this and neither do the so called Euro M.P.s

I therefore believe that through the 'Freedom Bill' we have to abolish the European Communities Act of 1972 and 1973 and free the taxpayer of the worst excesses of fiscal abuse.

The CSA need more powers to obtain information from self-employed parents

The Child Support Agency is a much needed agency and appears to be successful in straight forward cases, where the non-resident parent is not self-employed.  If the non-resident parent refuses to pay maintainance, then the agency can by pass the non-resident parent and contact their employer directly for the relevant information.  In these cases a calculation can be made and maintenance payments are deducted directly from the non-resident parent's wages.

However, as with my own experience, the situation is much more complicated if the non-resident parent is self-employed.  My ex partner was a partner in two limited companies.  The CSA have been involved in the case for 8 months but so far to little avail.  As my ex partner was his own employer, the CSA did not have the option to deduct payments directly from his wages.  Although when I first contacted the CSA last December they informed me that legal proceedings would be initiated if my ex partner failed to supply the necessary information and failed to make payments.  However it would appear that the CSA are limited by red tape and the law seems to be on the side of non paying non-resident parent.

It is a common misconception that the CSA has strong links with the Inland Revenue, when in fact they are not connected at all.  I suggest that a step in this direction would me most helpful to the CSA when dealing with non-compliant self-employed non-resident parents.

 

Why is this idea important?

The Child Support Agency is a much needed agency and appears to be successful in straight forward cases, where the non-resident parent is not self-employed.  If the non-resident parent refuses to pay maintainance, then the agency can by pass the non-resident parent and contact their employer directly for the relevant information.  In these cases a calculation can be made and maintenance payments are deducted directly from the non-resident parent's wages.

However, as with my own experience, the situation is much more complicated if the non-resident parent is self-employed.  My ex partner was a partner in two limited companies.  The CSA have been involved in the case for 8 months but so far to little avail.  As my ex partner was his own employer, the CSA did not have the option to deduct payments directly from his wages.  Although when I first contacted the CSA last December they informed me that legal proceedings would be initiated if my ex partner failed to supply the necessary information and failed to make payments.  However it would appear that the CSA are limited by red tape and the law seems to be on the side of non paying non-resident parent.

It is a common misconception that the CSA has strong links with the Inland Revenue, when in fact they are not connected at all.  I suggest that a step in this direction would me most helpful to the CSA when dealing with non-compliant self-employed non-resident parents.

 

Freedom for temporary trading, pop-up businesses and one-off events for profit.

It should be easier and simpler to allow people to trade on  a temporary basis, Please free them from the laborious paperwork and rregistration equirements which inhibit initiative.

This would enable people to  viably test their business ideas out and learn before taking the leap into self-employment

Encourage financial self-sufficiency and innovation.

Give an opportunity for those who are disabled or too ill to work full time to help themselves when they can.

Encourage the use of temporary shop premises between long-lets, preventing them from beign squatted or beign an empty eyesore on the High Street.

Why is this idea important?

It should be easier and simpler to allow people to trade on  a temporary basis, Please free them from the laborious paperwork and rregistration equirements which inhibit initiative.

This would enable people to  viably test their business ideas out and learn before taking the leap into self-employment

Encourage financial self-sufficiency and innovation.

Give an opportunity for those who are disabled or too ill to work full time to help themselves when they can.

Encourage the use of temporary shop premises between long-lets, preventing them from beign squatted or beign an empty eyesore on the High Street.

Website directories/networks for the Self-Employed

Currently a website directory/network for professional/qualified/skilled self-employed people to advertise their services, to publish references and examples of past services, to join informal overlapping teams for specific tasks, to build and maintain relationships with past current and future customers, is classified as an Employment Agency by the Employment Agency and Employment Business Regulations when it is in fact a directory network publisher. 

The current classification imposes a vast bureaucratic cost on each user and each task.  The result is this revolutionary business model doesn't exist in the UK.

Why is this idea important?

Currently a website directory/network for professional/qualified/skilled self-employed people to advertise their services, to publish references and examples of past services, to join informal overlapping teams for specific tasks, to build and maintain relationships with past current and future customers, is classified as an Employment Agency by the Employment Agency and Employment Business Regulations when it is in fact a directory network publisher. 

The current classification imposes a vast bureaucratic cost on each user and each task.  The result is this revolutionary business model doesn't exist in the UK.

Housing, Benefits & Jobs

Having had the misfortune of being made redundant through ill health last November and also being made homeless for part of this year, I have had to hunt high and low for somewhere to live and it has been far from being easy!

The biggest problem with being unemployed, is the simple fact that a great many landlords do not accept DSS tenants. Look at most adverts for property that is available to rent and you will see the words NO DSS attached to the end of the advert. 

Having researched the problem myself, I have discovered that there is a serious level of discrimination towards those who are unfortunate enough to have lost their jobs through no fault of their own.

Your government may be looking to cut benefits in order to reduce the national debt, but for someone like myself who is desperate to get back in to work and also done their damned hardest to get off the street, benefits are vital until new employment can be found. By councils delaying benefits or constantly messing people around, they are adding even more stress to what is already a difficult time.

Yes, the benefits system needs a re-think and yes, there are people who abuse it, but there are a hell of a lot of people who need it, that are struggling to survive! 

I am on Job Seekers Allowance of £65 per week. £7.65 per week  is deducted from that because I had no choice except to apply for a Social Fund Loan in order to be able to get the house I am now living in. This leaves me with just over £57 a week to survive on. Once I pay for electric, gas and food, I am left with virtually nothing. I do not own a television and even if I did, I would not be able to afford a licence! I have no car, and yet again if I did, I could not afford to run it! 

What I am asking is that the government start to look at the reasons why the people on DSS are struggling to find employment…. is it because of a lack of jobs? A lack of skills? There could be any number of reasons. 

In my particular case, I was made redundant through ill health last year, since making a recovery, I have applied for over 180 jobs since March this year. Out of the 180 jobs I have applied for, I have had exactly 8 letters telling me I was not suitable for the position or was not qualified enough and I have been asked to one (1) interview! The rest I have not heard anything from! So as a part of looking at the reasons why people are struggling to find employment, look at the jobs which are being advertised! 

I have been registered with Jobs Today, Monster and several other websites. Since registering, I have checked them daily and all I see is a repeat of the same adverts by the same companies with very little difference elsewhere. Many of these companies when you read their adverts often talk about career prospects within the company and how you can advance through the ranks. If this is the case, how come so many of the companies advertising these claims of fabulous career prospects are advertising elsewhere…why are they not promoting their current staff to the managerial jobs which dominate the Jobs website pages and replacing the staff who are promoted?

Why is this idea important?

Having had the misfortune of being made redundant through ill health last November and also being made homeless for part of this year, I have had to hunt high and low for somewhere to live and it has been far from being easy!

The biggest problem with being unemployed, is the simple fact that a great many landlords do not accept DSS tenants. Look at most adverts for property that is available to rent and you will see the words NO DSS attached to the end of the advert. 

Having researched the problem myself, I have discovered that there is a serious level of discrimination towards those who are unfortunate enough to have lost their jobs through no fault of their own.

Your government may be looking to cut benefits in order to reduce the national debt, but for someone like myself who is desperate to get back in to work and also done their damned hardest to get off the street, benefits are vital until new employment can be found. By councils delaying benefits or constantly messing people around, they are adding even more stress to what is already a difficult time.

Yes, the benefits system needs a re-think and yes, there are people who abuse it, but there are a hell of a lot of people who need it, that are struggling to survive! 

I am on Job Seekers Allowance of £65 per week. £7.65 per week  is deducted from that because I had no choice except to apply for a Social Fund Loan in order to be able to get the house I am now living in. This leaves me with just over £57 a week to survive on. Once I pay for electric, gas and food, I am left with virtually nothing. I do not own a television and even if I did, I would not be able to afford a licence! I have no car, and yet again if I did, I could not afford to run it! 

What I am asking is that the government start to look at the reasons why the people on DSS are struggling to find employment…. is it because of a lack of jobs? A lack of skills? There could be any number of reasons. 

In my particular case, I was made redundant through ill health last year, since making a recovery, I have applied for over 180 jobs since March this year. Out of the 180 jobs I have applied for, I have had exactly 8 letters telling me I was not suitable for the position or was not qualified enough and I have been asked to one (1) interview! The rest I have not heard anything from! So as a part of looking at the reasons why people are struggling to find employment, look at the jobs which are being advertised! 

I have been registered with Jobs Today, Monster and several other websites. Since registering, I have checked them daily and all I see is a repeat of the same adverts by the same companies with very little difference elsewhere. Many of these companies when you read their adverts often talk about career prospects within the company and how you can advance through the ranks. If this is the case, how come so many of the companies advertising these claims of fabulous career prospects are advertising elsewhere…why are they not promoting their current staff to the managerial jobs which dominate the Jobs website pages and replacing the staff who are promoted?

stop sending gas fitters back collage every five years

we are sent back to collage every five years just to prove compdence i have done two times in ten years last time cost me £1360 and seven days off without pay they still keep adding catorgorys that cost extra its a british gas ploy to put us out of work i could use this time money to learn to fit heatpumps solar pannels and new technologies

Why is this idea important?

we are sent back to collage every five years just to prove compdence i have done two times in ten years last time cost me £1360 and seven days off without pay they still keep adding catorgorys that cost extra its a british gas ploy to put us out of work i could use this time money to learn to fit heatpumps solar pannels and new technologies

Scrap ‘tax on account’ robbery of small businesses

The current tax situation for the self-employed & small businesses, whereby they are required to pay half the coming year's tax in advance 'on account', is completely unnaccepatable & counter productive to business growth.
Imagine if employees were told they had to pay half of the next year's tax in advance in addition to their existing tax burden? There would be rioting in the streets!
It's impossible in a recession to predict the coming year's earnings & totally unrealistic for HMRC to 'assume' you will earn the same amount in the coming year.
This is daylight robbery & must be stopped. You are allowed to put in a 'lower estimate' (with yet more additional form filling) but if this estimate is wrong you are then penalised with interest!
How can this be conducive to small business confidence & growth? Businesses are living in a state of perpetual financial anxiety & this has been the last straw.
Come on Coalition….scrap this totally unfair burden & prove you have small business' interests at heart, unlike the last Labour government.

Why is this idea important?

The current tax situation for the self-employed & small businesses, whereby they are required to pay half the coming year's tax in advance 'on account', is completely unnaccepatable & counter productive to business growth.
Imagine if employees were told they had to pay half of the next year's tax in advance in addition to their existing tax burden? There would be rioting in the streets!
It's impossible in a recession to predict the coming year's earnings & totally unrealistic for HMRC to 'assume' you will earn the same amount in the coming year.
This is daylight robbery & must be stopped. You are allowed to put in a 'lower estimate' (with yet more additional form filling) but if this estimate is wrong you are then penalised with interest!
How can this be conducive to small business confidence & growth? Businesses are living in a state of perpetual financial anxiety & this has been the last straw.
Come on Coalition….scrap this totally unfair burden & prove you have small business' interests at heart, unlike the last Labour government.

European Directives which impact on SMEs

 

To create a Small Business European Task Force to ensure legislation which could impact on SMEs is effectively monitored and engaged with from the outset.

Why is this idea important?

 

To create a Small Business European Task Force to ensure legislation which could impact on SMEs is effectively monitored and engaged with from the outset.