Tax warning as ’start-ups to reach record numbers’
The Federation of Small Businesses (FSB) is predicting that 300,000 entrepreneurs will take the leap in 2010/11 and become self-employed, thus providing a welcome boost to the UK’s fragile economy.
However, the lobby group has warned that individuals who choose to set up their own firm may be ‘pushed’ into paying PAYE tax if they are contracted to work for another company for any length of time.
‘Unemployment continues to be a worry for everyone, and this year we are expecting more people to become their own boss and go it and alone by setting up in business, which will both help the economy grow and tackle unemployment as these businesses flourish,’ said FSB National Chairman, John Walker.
‘However, those who do become self-employed need to beware of the tax man who is penalising these people when they work for other companies, putting them in the PAYE bucket and turning their legal status from self-employed to an employee.
‘The FSB is calling on HMRC to respect people’s wishes to be self-employed and for the HMRC to cease their tactics in pushing people into the PAYE net.’
Click here to contact your local Haines Watts office regarding this article
Click here to subscribe to our Newswire and keep up-to-date on business matters each month.
Date: 30-07-2010