The mystery of self-employment

BIS to review the secrets of the self-employed

The Department for Business, Innovation & Skills (BIS) has asked the entrepreneur Julie Deane, OBE, founder of The Cambridge Satchel Company, to carry out an independent review of self-employment in the UK.

The review, expected to be published in early 2016, will report to the government on the challenges and opportunities for those wishing to be their own boss. It will highlight the contribution the self-employed make to the UK economy and consider how they can be better supported, e.g women building businesses alongside childcare commitments.

In carrying out the review, Julie Deane’s remit will be to:

• explore why people choose self-employment as well as the various occupations and trades they are involved in, including freelance professionals, sole traders and those who run a business in addition to being employed;

• examine the challenges and issues faced by people who are self-employed, especially when setting up or developing their business; and

• recommend how the UK can create a more flexible and supportive environment.

Also included as part of the review will be to examine what can be done to provide more security and peace of mind, e.g when balancing self-employment with a family, buying a home or saving for retirement.

The UK labour market is one of the most diverse in the world with self-employment making up over a quarter of the growth in employment over the last 5 years. According to the Office for National Statistics, 1 in 7 people gainfully employed choose to work for themselves, making a total of 4.5 million business owners.

David Morris, the government’s self-employment ambassador said, “I am delighted the government is carrying out this independent review. The self-employed make an important contribution to the UK economy and this review will help us to support the nation’s entrepreneurs even further.”

As part of its report on employment status in March of this year, the Office of Tax Simplification recommended that a joint review be carried out between the HMRC, HM Treasury, the Department for Work and Pensions and BIS to look at the possibility of developing an agreed code of principles on employment status. Whilst BIS have got busy, albeit not specifically looking at status per se, the remaining three departments are still in the starting gates. So much for joined up thinking!