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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

A Tory Chancellor has just abandoned the self-employed

275 replies

longfingernails · 08/03/2017 15:07

Hammond has raised class 4 NICs and cut the dividend allowance. AIBU to believe this is unacceptable. We need to be a low tax capitalist country which does everything to encourage entrepreneurs, whose animal spirits aren't dampened by high job taxes.

We should instead cut NI for all employers/employees. An easy initial cost saving is cutting international aid. We can also improve efficiency in public services through greater private provision, reducing the benefits cap, etc.

OP posts:
LilyBolero · 09/03/2017 10:50

No SMP or paternity pay if you are self employed. No childcare vouchers. No protected leave. No sick pay. no holiday pay.

LilyBolero · 09/03/2017 10:52

If you are employed and you lose your job (i.e. have paid Class 1 NICs) you are entitled to contribution based JSA. Simple. You sign on, get it. No means testing.

If you are self employed and have to go onto JSA, you have to get income-based JSA. However it is means tested, and if you have savings you cannot get it.

brasty · 09/03/2017 11:00

I am salaried and don't get sick pay.

LilyBolero · 09/03/2017 11:04

If you are employed, you are entitled to sick pay by law. If you're not getting it, your employer is breaking the law.

brasty · 09/03/2017 11:07

You are entitled to statutory sick pay after 3 days sick. That is all.

LilyBolero · 09/03/2017 11:08

self employed are entitled to nothing, and what's more, may find they have no work to go back to, as they have no protection at all.

amispartacus · 09/03/2017 11:10

If you are employed, you are entitled to sick pay by law. If you're not getting it, your employer is breaking the law

Yes - I employ 'myself' through my own company. So I can pay myself sick pay. But I can't as an employer claim SSP back through the Government (I used to be able to).

I should take myself to court for not paying myself sick pay.

surferjet · 09/03/2017 11:11

YANBU.

Tory bastards.

The self employed get nothing. No sick pay, no holiday pay, nothing. They should not pay the same as someone who gets all these benefits.

Last time I vote Tory.

brasty · 09/03/2017 11:13

Holiday pay is not paid by Government though, but by the employer. So you can pay yourself holiday pay. That is not comparable.

amispartacus · 09/03/2017 11:15

Holiday pay is not paid by Government though, but by the employer. So you can pay yourself holiday pay. That is not comparable

That's true - and that's why self employed people charge more for services to compensate for sick pay and holiday pay.

And then people complain about the rates self employed people charge.

Trumpdespiser · 09/03/2017 11:16

I'm self employed, my accountant has never found me any loopholes. I am a floating voter and the Tories (already not my favourites) have lost me forever now by this message that they are the party of big business.

Also amazed at the short-sightedness of the VAT changes, like others here, I'll now deregister as I'm below the threshold (didn't use to be) and the government will lose out on the revenue I used to collect for them.

Redpoll · 09/03/2017 11:27

As an employer self employed is the best way. No sick pay to worry about no holidays and for those who are willing to work more money at the end of the week. Its a no brainer really. Flexibility as well. Would be no other way for me

featherland · 09/03/2017 11:28

Self employed people don't get sick pay, maternity pay, holiday pay, employer pension contributions or union representation. Our working lives are more precarious than people who are employed, and we have access to fewer benefits.

But even more pertinently, the so called 'gig economy' means that more and more people are encouraged to work on a self employed basis. This is for the benefit of large corporations like Uber, which effectively get round minimum wage legislation by only paying people when there is work available (rather than for the time people have to be available for work), and also dodge all employer costs and responsibilities. This system penalises self employed people, as well as small and medium sized businesses who abide by the spirit as well as the letter of employment law.

I would have expected a Tory budget to target these exploitative corporations, which take money out of the UK (Uber pays taxes in the States, not in the UK), and discourage home grown businesses and entrepeneurialism.

Redpoll · 09/03/2017 11:34

Believe me in many occupations you are still better off Self Emoloyed.
Just increase your rates in a quiet sort of way to compensate. Obviously this depends of services you offer etc

amispartacus · 09/03/2017 11:42

Just increase your rates in a quiet sort of way to compensate

How do you increase your rates in a quiet way?

Sparklydress · 09/03/2017 11:48

It's also much harder to get things like mortgages etc

Completely agree, despite having a very healthy income, we were stuck in rented for a long time as we could not get s mortgage.
We got one through a specialist, at a high rate for a low multiple.

We have no pension, no holidays without working at least a couple of hours a day and no sick pay.

Lalalandfill · 09/03/2017 11:49

Just increase your rates in a quiet way

If only it worked liked that ...

I can see it's wonderful for you employers who like to exploit workers with no sick pay etc

brasty · 09/03/2017 11:49

It depends whether you are self employed where you are selling your time to lots of different people, or only working for one firm. My DP is self employed and works for one company. They offer a particular rate, you take or leave it. You can not increase your rate.

amispartacus · 09/03/2017 11:51

My DP is self employed and works for one company

See - is that really self employment?

I supply my services to a number of different companies and I also provide services to people - my rates are very flexible and negotiable depending on supply and demand.

People who work for 1 company are being exploited

LilyBolero · 09/03/2017 11:58

A lot of the work I do is freelance/SE, and I do not set the rates. I'm offered work at a fixed rate.

HemiDemiSemiquaver · 09/03/2017 12:07

I'm self employed, because there aren't enough funds in education to pay for what I do, despite it being sorely needed.

I don't get sick pay, holidays, workers' rights, etc., and the lower NI contributions is a reflection of that.

If I raise my prices, my services will be available to fewer children - it's already pretty restricted to parents who can afford it, which isn't fair - and this will exaggerate that difference. Or I would have to consider finding a job that is regular employment, if I couldn't absorb the costs - and it wouldn't be in this field. That wouldn't benefit any children, as it would just remove availability for the service generally and there would be longer waiting times or higher costs for other providers.

Hoppinggreen · 09/03/2017 12:31

bratsy unfortunately your husband is one of this they will be going after next.
From April the Pubic Sector will be making all SE people pay tax at source ( without getting any employed benefits and perks) and Private industry might be forced into this next. Look up IR35

amispartacus · 09/03/2017 12:34

From April the Pubic Sector will be making all SE people pay tax at source

Yes - I saw that. I think it's slightly complicated and they have 'some kind of sheet / computer system' to define it.

Still - if they are going to pay my employers NI - then that will increase costs on the employer...

Believeitornot · 09/03/2017 12:36

brasty I would argue that in substance your DP is not self employed unless he isn't working full time.

Owllady · 09/03/2017 12:37

Tbh we are actually affected by this as a family but we don't try and avoid tax anyway (I know lots of people who do) BUT what struck me was that it's going to affect their Tory voting white van type trade professions surely, which is a high proportion of their core voters! Confused