I wrote on another site the other day about how I hadn’t paid any income tax for about five years, in part because of my student status, and then because as a self employed person, I was earning under the personal allowance, thanks to the rise in the limits and the expenses I can claim. I also said how I didn’t feel bad about this.
But on a wider scale this is a major problem. There’s been a lot in the press lately about the huge rise in self employed workers since the recession began.
This does not necessarily equal good wages (although it will keep them off the unemployment statistics). And if it’s keeping people on the breadline this still has implications for the benefits system since Working Tax Credits can be the life saver of any home worker putting in the hours. And whilst many will be registered for National Insurance, pensions and savings may have been forgotten a long time ago, conciled to a wish list.
And this has implications for our country in future years because it means many people will be reliable on the state pension, but perhaps having not contributed anything back in years. And as we know the state pension leaves people in basic want. Even more will never retire and continue to run those businesses for as long as their health allows. And then what?
I’m not saying it’s all gloom and doom. Many of these companies are successful. But for all those that are, more aren’t and even if they continue to trade they may never get their owners far above the poverty line if things continue as they are.
How our economy will fair in future years, who knows. Will these small companies remain long enough to reap the rewards? Again, who knows. All I know is that it’s sometimes a struggle to keep going in business whilst trying to remain true to what you wanted to be, to keep loving what you are doing and remain focused.