As a small sole proprietor, single, no kids and not a home owner I feel pretty insignificant when it comes to the budget. I have little use in many respects because most of what went on last week doesn’t affect me directly at all. I get one tiny point for not claiming job seekers, but I lose several points for taking advantage of the Working Tax Credit, not employing anybody else and not paying any tax thanks to the way the Government rewards its small businesses with a generous list of deductible expenses.
As far as the economy is concerned, I feel pretty undervalued. But is being under the radar like this such a bad thing? After all, the new budget won’t damage the way my business runs for the next few years. Or will it?
Like the Government I make predictions based on the limited information I have, which suggests this is going to be a good financial year for me – my fourth as a small business owner. The general agreement is that it takes about 5 years to get established as a business these days and many don’t get that far. But like the Government’s predictions for the deficit, it’s all based on events that haven’t happened yet. I don’t know what is around the next corner.
Whilst I have got through this budget unscathed, others around me who are helpful to my success will have been affected. So there may not be enough money to sustain my predictions.
Potential customers, who’s wages have been cut, may not buy my work, businesses who might have employed me to style shoots or utilise my skills may do everything in-house. The living wage may force employment cuts for companies. Tax credit cuts may effect individuals spending power. So everyone is affected one way or another.
Whilst the Government is adamant it is rewarding where it needs to and balancing everything out, I suspect there may be some issues along the way. But only time will tell and for now, there’s nothing to do except carry on as before.