Large Growth in Self Employment

Ever thought about starting your own business? Always wanted to be your own boss? Then you’ll be pleased to learn that you are not alone. More and more people are becoming self-employed and forging their own destinies. So many individuals in fact, that the current number of self-employed Start Up businesses now outstrips the number of new vacancies by a considerable margin. That can only be good news as far as we’re concerned, because as accountants we know that the foundation of the UK economy is built on self-employment and small businesses.

So where do these new figures come from? Well, it’s the Office of National Statistics. The ONS has revealed that the rise of professionals in the self-employed sector has outstripped the creation of new jobs, and believes these figures suggest that there is a sea change in the way the UK is beginning to work.
 
Quarterly labour market data published this week by the ONS found there were just 0.2 per cent more people ‘employed’ in the last quarter. However, there was a significant rise (4.1 per cent) in the number of self-employed professionals during the same period. This growth in the self-employed sector equates to around 172,000 extra professionals in the last quarter of 2013 alone. It also suggests the number of self-employed people in the UK now totals 14.5 per cent of the country’s entire workforce, according to the Freelance Association, PCG.
 
PCG’s figures show that there has been a 63 per cent increase in the number of British people turning freelance in the last decade alone; taking the total number to 1.72 million. In the last six years, 84 per cent of the increase in self-employed workers was for those aged 50 and above; while London enjoys the highest proportion of self-employed professionals (18 per cent).The rise in the number of new self-employed businesses is significant in the opinion of Georgios Nikolaidis, economic policy adviser for PCG. He said:

“The rise in those choosing to go into business on their own is outstripping growth in traditional employment at a rate of almost three-to-one. This sharp increase in self-employment is more proof that the way we’re working is changing.”
 
However, as good as that news may be, there is also a downside. For every business starting this year only 43 per cent will still be trading this time next year. Running your own business can be difficult and challenging: that’s why it’s vital for new Start Ups to get expert advice from accountants like Steven Glicher.

So how can Steven Glicher accountants help your start-up business? Well, that’s simple. We’ll do it by providing all the core start-up business services your company will need to build a robust and successful business. We can help with those tricky matters that often confound new businesses, such as:

·         Tax planning : we can give you advice on the areas of tax planning we feel are likely to be of greatest importance as you start trading.

• We can advise you on the most suitable form of business structure for your business. Should you be a sole trader, partnership, Limited Company or even a Limited Liability Partnership? Which will work best for you?
• Raising finance and business plans: we can help your business by identifying the funding you’ll need, the most suitable sources of finance, the cash-flow projections, the budgets, and the trading forecasts.
• We can show you how to keep your book accurately and up-to-date. We can do this either manually or on a computer, whichever you prefer. We can also advise and train you on suitable accounting software.
• We can help you with business planning and will look at your existing business, identify its potential, and determine the main challenges it will face in the future.
• We’ll ensure that your business complies with all the relevant statutory notifications. It’s vitally important that you let HMRC know within 3 months of commencing self-employment that you are in business. Failure to do so results in substantial automatic fines. We will help to complete all the necessary forms, set you your national insurance payments and if necessary complete any VAT Registration forms for you.

·         As part of our mentoring role, we can introduce you to local banks, solicitors and other professionals you may need assistance from in the coming years.

·         We can also set up your Limited Company should you choose to trade through one.

·         We can give small businesses helpful advice on the advantages and disadvantages of VAT, and take care of any issues you may encounter.

For further information call Steven Glicher accountants on 0161 485 8007