FSB: More people will 'go it alone' this year

Date: 3rd August 2010

More people than ever before will be tempted to branch out and start their own business this year, according to one industry body.

This could mean a rise in the number of sole traders and small business owners operating in the UK.

The Federation of Small Businesses (FSB) has suggested that the UK's current rate of unemployment is making the prospect of being self-employed more attractive.

However, John Walker, the organisation's national chairman, has warned that the country's tax system could pose problems for those who are new to self-employment.

The expert said some could be handed penalty charges over their employment status when supplying services to other firms.

"Those who do become self-employed need to beware of the tax man who is penalising these people when they work for other companies, putting them in the PAYE bucket and turning their legal status from self-employed to an employee," he said.

A number of people could be encouraged to consult a specialist tax accountant in order to avoid receiving such charges.

Posted by Emma Clarke