Record Boom In Small Businesses Predicted
FSB forecasts creation of 300,000 small businesses this year
A whole lot more small businesses should be springing up this year all over the UK, according to a new report from the Federation of Small Businesses. In fact, the FSB has forecast that a record 300,000 people will forego the working-for-someone-else routine and establish their own company this year.
The root cause of all this entrepreneurship is, unfortunately, unemployment. The FSB admitted that many people will start their own companies only after losing their more traditional jobs. There’s one other potential problem related to taxes, too.
The FSB said in a statement that it’s “concerned that those that do become self-employed are penalised by the taxman if they go on to work for other companies.”
The organization then explained, “If you are working from home as a plumber, hairdresser or interior designer you probably won’t be affected, but if you are contracted to work for another company for say three months, the taxman will want to put you into the PAYE bucket and turn your legal status from self-employed to that of an employee.”
Still, to look at that situation from another angle, it could be pretty nice if the owner of a brand new business is able to get jobs that last three or more months at a time. A lot of people would love to receive a steady stream of income for that long a period.
Anyway, hopefully the creation of 300,000 new small businesses will go a long way toward bringing small biz issues into the spotlight and convincing politicians to help in more significant ways.