One wonders if the Chancellor remembers the Brain Drain we once experienced. For certain, there are now lower taxed countries in the world that our IT and finance professionals could go to earn their money without paying quite so much tax.
Over the last 20 years the City of London has risen and risen in comparison with New York with the number IPO's in London constantly increasing and approaching the scale seen in New York. This is largely due to flexible labour markets and the fact that London has attracted some of the best professionals. The major financial instutions in London operate in volatile conditions and the use of freelancers allows them to adjust accordingly. The government's relentless pursuit of freelancers could really jeopardise that flexibility - or banish it abroad.
Of course, it's not just the City and the Financial Services industry - I merely used the City as one example of many. The flexibility that freelancers offer to business in general is valuable - and we cannot afford to lose it.
At the inception of IR35 there was a sharp intake of breath from accountants. But after the dust settled, accountants and freelancers found a way forward. One hopes it will be possible to find a way forward from the draconian Managed Service Companies (MSC) and Debt Transfer rules.
Perhaps one day we will have a Chancellor who appreciates the importance of flexible labour markets and who understands that suffocation by tax will only drive our talented professionals abroad.
PLEASE HELP MY BLOGS AND LINK TO THEM FROM YOUR WEBSITES.
UK-Freelancers: www.uk-freelancers.blogspot.com
UK-Small-Business: www.uk-small-business.blogspot.com
Antony J. Holdsworth & Co is a firm of Tax Advisors & Chartered Management Accountants that specialises in small owner managed businesses and IR35 freelancers. Visit us online at: www.antonyjholdsworth.co.uk
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Friday, 13 April 2007
Thursday, 5 April 2007
Where should I start?
For me, the 2007 Budget was the last straw! It was a kick in the teeth for small businesses in so many ways.
As the owner of a firm of Chartered Management Accountants that provides services to small owner managed businesses (including freelancers), I have become more and more dismayed at our government's attitude to small businesses.
Our country used to be a place that encouraged enterpreneurs and risk takers - a country that rewarded people who were prepared to work hard and get up off their back sides and help themselves.
But now , entrepreneurs and hard working people must feel as if they are taxed to the hilt and unrewarded for the contribution they make to our economy - perhaps even to the extent of taking their skills with them to a country that DOES reward enterprise and hard work.
I feel that it is time for me to express my views in a place where others can see them. I am sure there must be thousands of other business men and women out there who feel exactly the same.
I have started two blogs. One is for small businesses in general and the other (this one) is for freelancers. I thought a separate blog for freelancers was appropriate as they seem to have attracted the Chancellor's attention in a big way.
I hope my blogs will become well known and popular. Perhaps I am over ambitious. But one thing I do know is that as a nation we are too passive about the things we care about. This is the start of my effort to champion small business and enterprise. We should make our voices heard!
PLEASE HELP MY BLOGS AND LINK TO THEM FROM YOUR WEBSITES.
UK-Freelancers: www.uk-freelancers.blogspot.com
UK-Small-Business: www.uk-small-business.blogspot.com
Antony J. Holdsworth & Co is a firm of Tax Advisors & Chartered Management Accountants that specialises in small owner managed businesses and IR35 freelancers. Visit us online at: www.antonyjholdsworth.co.uk
As the owner of a firm of Chartered Management Accountants that provides services to small owner managed businesses (including freelancers), I have become more and more dismayed at our government's attitude to small businesses.
Our country used to be a place that encouraged enterpreneurs and risk takers - a country that rewarded people who were prepared to work hard and get up off their back sides and help themselves.
But now , entrepreneurs and hard working people must feel as if they are taxed to the hilt and unrewarded for the contribution they make to our economy - perhaps even to the extent of taking their skills with them to a country that DOES reward enterprise and hard work.
I feel that it is time for me to express my views in a place where others can see them. I am sure there must be thousands of other business men and women out there who feel exactly the same.
I have started two blogs. One is for small businesses in general and the other (this one) is for freelancers. I thought a separate blog for freelancers was appropriate as they seem to have attracted the Chancellor's attention in a big way.
I hope my blogs will become well known and popular. Perhaps I am over ambitious. But one thing I do know is that as a nation we are too passive about the things we care about. This is the start of my effort to champion small business and enterprise. We should make our voices heard!
PLEASE HELP MY BLOGS AND LINK TO THEM FROM YOUR WEBSITES.
UK-Freelancers: www.uk-freelancers.blogspot.com
UK-Small-Business: www.uk-small-business.blogspot.com
Antony J. Holdsworth & Co is a firm of Tax Advisors & Chartered Management Accountants that specialises in small owner managed businesses and IR35 freelancers. Visit us online at: www.antonyjholdsworth.co.uk
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