Sunday, Aug 23, 2009
House prices linked to self-employment
Telegraph: Self-employed running on empty as they chase harder for less cash
The Federation of Small Businesses, in a survey of its members in 2008, found that lack of access to affordable finance and a shortage of working capital, coupled with late payments, are making the situation worse for small firms. Many small business owners over the past few years were able to finance their businesses by mortgaging their houses. Indeed, a recent paper found that half of the rise in self-employment of around a quarter of a million from 2005-2007 could be explained by rising house prices. Rapidly declining house prices means that source of funds has dried up.
Posted by drewster @ 11:23 AM (586 views) Add Comment
3 Comments
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1. stillthinking said...
Self employed don't qualify for any benefits for 6 months. Losing mortgage interest relief and income support/jobseekers allowance. Call that 4K lost access to social insurance because they still pay tax and NI (IR35 etc).
2. Downsizingdiva said...
It's about time the self-employed had to face up to reality. They get away with so much in terms of "tax-efficient" book-keeping, off-setting personal expenses (e.g. petrol, phone, use of house, etc. etc.) against income that they should realise they can't have it all ways.
3. Avidfan said...
Have you seen the comments underneath the article? They read like armageddon. Perhaps someone should post these on the main forum.