British Tradespeople Struggling to Expand Business: What Is Holding Them Back.

Challenging Conditions for Business Growth

According to The Sun: A new study indicates that professionals in the trade sector are facing serious difficulties in growing their businesses due to rising costs, bureaucracy, and hiring issues. A survey of 850 professionals conducted by Checkatrade in the UK demonstrates their willingness to support government growth initiatives; however, existing challenges impede this.

Four out of five respondents indicated that rising prices for materials and tools, as well as an increase in tool thefts, complicate the development of their businesses. Additionally, most respondents expressed concerns over rising taxes, particularly the increase in National Insurance contributions for employers. Since April, the government has raised the contribution rate from 13.8% to 15%, and reduced the threshold for these contributions from £9,100 to £5,000, further complicating the financial situation for professionals.

“Great Britain relies on the trades industry — from carpenters to electricians, decorators to roofers. 900,000 people working in this sector are essential for our economy.”

— Jambu Palaniappan, CEO of Checkatrade.

The CEO emphasized that the research confirms the desire of professionals to engage in government growth programs aimed at improving the economy and increasing productivity. However, despite optimism and growth opportunities, professionals still face serious challenges.

“The government must work with the industry to close knowledge gaps, ensure the effectiveness of training programs for small businesses, and do everything possible to reduce the burdens, costs, and taxes that may hinder the growth of professionals.”

— Jambu Palaniappan, CEO of Checkatrade.

What Support Is Available?

For self-employed individuals facing increased living costs, there are several types of support available.

Universal Credit

One way to cover costs is through Universal Credit. You can apply if your income is low and you have limited savings. However, if you live with a partner and have joint savings over £16,000 or your partner earns too much, you will not be able to receive this assistance.

Employment and Support Allowance

As a self-employed individual, you cannot receive statutory sick pay. However, if you have paid enough National Insurance contributions, you can apply for the new style Employment and Support Allowance in case of illness. This can be done regardless of your household income or savings.

Additional information about eligibility for this assistance can be found on the GOV.UK website.

Reduce Your Tax Bill

You may miss out on valuable tax reliefs that could save you significant amounts. If you work from home, you can claim expenses related to work, such as phone bills, gas, and electricity. For example, working from home 51-100 hours a month can qualify you for £18.

If you work over 101 hours a month, you may be eligible for £26 per month or £312 per year. Tax reliefs are also available for mileage if you use a car or van for work.

For further tips on reducing tax liabilities for the self-employed, refer to our guide.

Do you have financial issues that need addressing? Contact us by emailing [email protected].

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The business landscape remains challenging, so it's important to stay informed about available support options that can assist self-employed individuals. With government initiatives and appropriate programs, there is hope for improved conditions for small businesses that play a crucial role in the country’s economy. Therefore, professionals should actively seek opportunities to adapt to new challenges, not only to survive but to thrive amidst changes.