Manchester’s self-employed are faced with new costs

The economy in Manchester is one of the largest in England.

Since the financial crisis, there has been a 28% rise in self-employment with an estimated 163,000+ people in Greater Manchester alone.

It is estimated that by 2020, half of working people will be self-employed.

 

But why so many people?

The issues faced all began from the financial crisis, where international money markets drew back in fear of the recession. Companies cut back and many people found themselves jobless.

In 2015, unemployment in Greater Manchester rose to 213,000 between April and June.

After being a city that was branded a prime example of urban regeneration following the IRA bombing, why have we as a city become unemployed and unable to find a job again?

For many, the only option left was self-employment.

( For image source click here )

So why did everyone choose self-employment?

The advent of social media, the development of technology and an increase in accessibility meant that starting up a business from scratch was almost a ‘simple option’.

One idea can instantly become a reality, with social media growing constantly, your idea can quickly become very popular.

Websites such as http://www.wix.com allow setting up an online portfolio of work to be simple and straight-forward. Twitter, Instagram and Facebook also became huge in growing self-made business due to the advanced search tools they have on offer.

 

 

What NOW?!?

In March of this year, the government proposed that they were going to increase the rate of national insurance for self-employed people due to the huge increase in those who are registering themselves as self-employed.

The Chancellor has claimed that those who are registering as self-employed are not paying enough tax in relation to those who are not self-employed.

The Chancellor said an employed person earning £32,000 would pay National Insurance contributions, between them and their employer, of £6,170, while a self-employed person earning the same amount would pay just £2,300.

What would this mean for self-employed people? Will they have to return to work for an employer? Would they have money trouble?

I took on the task of speaking to a recently self-employed accountant, Suzanne Rooney. I asked for her thoughts on self-employment and the recent increase in national insurance and how it may affect many self-employed people across Manchester.

Suzanne Rooney set up her own accountancy business in 2015, ‘Sue Rooney Accountancy’ after previously being made redundant.

 

 

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