PRO INSTALLER MAY 2016
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PRO NEWS
SELF-EMPLOYED NUMBERS AT ‘ ALL-TIME HIGH ’
The number of self-employed people in the UK is now at an all-time high of 4.6m , according to an independent self-employment review .
The report was by Julie Deane OBE , chief executive officer and founder of The Cambridge Satchel Company . Mum of two Julie started out with just £ 600 and alongside her mum Freda Thomas created a business worth £ 10m . Among her recommendations was better education to prepare young people for self-employment , a new ‘ adoption allowance ,’ and a more precise definition of the term ‘ self-employment .’ In her summary Julie said she would welcome feedback from the self-employed sector , with which she felt “ a particular affinity .” She said : “ I have tried to accurately portray the views and concerns that have been expressed to me . I hope I have done this in a way that does justice to the level of input I have received and that my recommendations make a real difference .” The report revealed the number of self-employed in the UK is growing and the trend seems set to continue . This group now represents 15 % of the UK workforce making a considerable and positive contribution to the country ’ s economy . Much of the growth over the last few years has been driven by this sector . Most of the self-employed had made a positive choice to be so and had no plans to return to employment . They had found a good balance with work / life commitments and were often happier . Technology had made a tremendous impact , particularly over the last ten years . The many factors within the self-employed landscape had changed , including age profile . Julie Deane said choosing to be self-employed should “ not mean that people are disadvantaged in the support that they receive from government .” She said : “ It is important that with the increased growth in self-employment , and the subsequent benefits that this group brings to the economy , that there are systems in place to support the self-employed in the same way as the employed . Government should consider extending support to the self-employed in areas where there is discrepancy between support for the self-employed and support for employees .”
In her recommendations she said there was a need for education to better prepare young people for the role which self-employment might play in their future . During the review , many self-employed people had talked about their concerns around a lack of knowledge regarding finance , cash flow , bookkeeping and taxation . Julie said : “ These are skills that would benefit many adults regardless of their employment status and yet they are still lacking from our curriculum .” It was important that advice and support available was as accessible as possible . A central portal from which to navigate impartial support and services available to the self-employed was vital . Presently there was much confusion over the duplication on offer . There was also a need for more flexible financial solutions , from mortgages and insurance to pensions , and the financial institutions that chose to address this stood “ to benefit enormously .” There was a clear desire for equal treatment and recognition from the government for the self-employed and the support provided by government to those starting or extending a family should be consistent whether the beneficiary was employed or self-employed . The recommendations said government should consider enhancing the level of maternity allowance , and introducing a new adoption allowance for self-employed adopters . The lack of a legal definition of self-employment was causing an issue , and simplification and clarification with a single definition for tax and employment law was desired and should be considered . Overly complicated legislation and administration was costly for the government and burdensome to the growth of businesses and needed addressing in a clear and ‘ common-sense ’ manner . Taxation was repeatedly raised by all those interviewed – as an administrative burden , a barrier to growth , and an issue that could benefit from improved simplicity and better advice .
Source : www . gov . uk