The UK is producing a new wave of entrepreneurs. Self employment is rising swiftly. Many more people now have more than one job, splitting their time between differing paying activities. THis is making our economy more flexible, giving more choice and better service in many areas. What more can be done to encourage others to tread this helpful path?
Most entrepreneurs will not make a fortune, and many will do it for a bit of their lives before moving into an employer based job or retiring. It needs to be relatively easy to do this. This means reviewing the paperwork and compliance involved, especially by the VAT and Income Tax authorities.Someone who is good at gardening or plumbing and provides a good service is unlikely to be a tax expert or to have money to spend on an accountant. Simplification of the demands on them for financial information would help.
Many entrepreneurs aspire to financial success. They do not want to feel that if they are successful too much of their hard earned gains will go in Capital Gains Tax or higher levels of Income Tax. Taking down the rates of both Income Tax and CGT could raise more revenue, partly by encouraging more to venture. At the moment a new business is an asymetric bet. If you lose the taxpayer does not help with yous losses, but if you win, the taxman expects a large share.
One of the most difficult things to do is to hire your first employee. Most businesses remain as one man or one woman bands, fearing the amount of work they would have to do to take on, pay and look after an employee. I am all in favour of good pay and conditions for employees.However, the very bureaucratic requirements which larger companies can handle are difficult for small businesses. The govermentn needs to review whether there can be more flexible rules for one person businesses making that first step.