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Thirty seven problems – and tax is one, says FSB

The Federation of Small Businesses (FSB) has released a list of 37 challenges facing the self-employed.

These 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.  

FSB regional chairman Gordon Millward 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

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