Lack of security 'is self-employment's downside'
A ‘lack of security’ in their work is freelancers’ Achilles heel, a new study suggests.
Asked by The Qdos Group about the hardest part of self-employment, almost half of freelancers said it was having less security than they would like, in terms of work and pay.
In terms of respondents, the second biggest challenge is the ‘tax system and its complications,’ the freelancers said, potentially referring to anything from IR35 reform to the removal of the NI Employment Allowance for one-director companies.
“Recent changes to the tax system, which includes…the slashing of tax-free dividend allowance have reduced the benefits of working independently, without the offer of anything in return,” said Qdos CEO Seb Maley.
Surprisingly perhaps, only five per cent of freelancers said isolation was the most difficult part of working independently, slightly behind the 10% who said it was separating work life from personal life.
For Maley, either or both should be taken into account when the chancellor stands up to deliver Autumn Budget 2017.
He said: “It’s important that the government focuses on building a fairer environment for those working independently, and one where the benefits of self-employment balance the risk and lack of security.”