Huge increases of people self employed

The Office for National Statistics has recently revealed that the number of self-employed workers has risen by 367,000 to 4.2 million between the start of the economic downturn in 2008 and June 2012. 60% came between 2011 and 2012.

Self-employed people now account for 14% of the working population. 84% of which are people aged 50 plus.

For many of these older workers becoming self-employed is a positive career choice but for many others it is a choice forced upon them because they have been made redundant and have not been able to secure alternative employment and cannot afford to retire.

A large number of these workers will work longer hours and earn less than when they were employed.

Becoming self-employed can present a huge challenge for the self-employed worker, becoming responsible for their own tax affairs, insurance and pension arrangements.  Some 58% of self-employed workers will be working from home and this will also have both insurance and tax implications.

What does this mean for you?

Unless their tax affairs are very simple or they have accounting experience these newly self-employed people will need advice from a professional accountant.

You may already be getting more enquiries from people who have changed their way of working.

Something for you to consider though, statistics show that the first year of self-employment often tends to be a good year in comparison with years two and three, unless the person works to build their long term pipeline rather than just tapping their network for immediate sales.  Some pro-active advice from their accountant may help them along …….