As per the first quarter report of FSB, unemployment has increased to 2.5 million in UK. Because of high unemployment rates, Federation of Small Businesses (FSB) is expecting a boom.
As per the FSB, about 300,000 people are expected to become their own boss and to set up their own small business because of high unemployment rates. This will not only help in growth of economy but also will increase the job opportunities as these small business come into existence.
FSB is concerned that if the people become self-employed, they will be penalised by the taxmen if they go on to work with other companies. The FSB wants HMRC to check the entrepreneur is meeting the criteria for self-employment.
There wont be any effect on people working from home as a hairdresser, plumber or interior designer, but once they contracted to work for another company for a period of time, the taxmen will turn the legal status from self-employed to an employee.
