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Recession inspires increase in contractors

Recession inspires increase in contractors

The recession has inspired more of us to become self-employed according to Kensington Mortgages.

They recently published a study that found that just under 25% of the self-employed have been so for under 2 years. This equates to 1.2 million people changing their employment status since March 2008. And half of them became self-employed within the last year. The report also shows that the UK now has 5 million freelancers, contractors and temporary workers.

But unnecessary taxes and a lack of available bank support is hampering opportunities.

Rhiannon Davis from Shelter Offshore believes that businesses could get more support if they moved abroad. She said that UK law is restrictive and taxation excessive citing Class 4 National Insurance Contributions as an example. Effectively, they are a tax on tax, she said.

It seems some of us agree with her as 24% of the self-employed are thinking of setting up abroad according to a recent survey by foreign Direct Currency.

The outcome of the General election is still unsure but should the Conservatives form the next government, contracting may become even more attractive. The PCG expects the Tories to review IR35 which has been seen as a major factor in putting people off becoming freelancers.

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Image: 031/365: 60 second walk by dotbenjamin

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