chocolate, taboos, impossible choices, and tax - the present and possible futures of freelancers with caring roles?

Each October is the global Freelance Business Month – a coming together of freelancers from different countries to share encouragement, support, insight, and general building up of each other.

This year, I was invited to lead one of the sessions, to explore the ways in which freelancers from around the world who are also unpaid carers approach balancing the often-conflicting demands of these roles.

In the run up to it, the topic seemed to be drawing a lot of interest, based on responses, comments, and reshares to social media posts about it on different platforms; and, on the day, the number of windows in my zoom app from people joining only just all fitted onto my screen…

As part of the conversations, everyone agreed that it would be important to try and capture some of the stories shared, as an encouragement and support to our peers who are similarly juggling these roles and circumstances - which is what you're now reading in this blog post.

Caring around the world

We opened with a brief reflection on what unpaid caring and freelancing looks like in different countries. Based on my own researches over the last few years, we know that in the UK, unpaid carers who are also freelancers:

• Number in the region of approximately 500,000;
• Are twice as likely to be in poverty than their counterparts who are able to be in some form of salaried work, and that’s largely because we suffer a ‘caring penalty’ in the form of lost earnings of up to £20,000 each year because of our caring responsibilities;
• Were usually freelancing before gaining a caring responsibility, in contrast to popular belief;
• Aren’t recognised or offered any rights in law (as other carers are), and as a result have no caring or business services designed in recognition of their specific circumstances.

Others in the session shared a similar lack of recognition and support available in their respective countries. 

The stress is universal, unavoidable, and causes problems

Some talked about how the pressures and stresses of taking on and managing a caring role can mean that we may be more prone to making mistakes in how we manage our affairs as a freelancer - one person shared that the process of becoming a carer meant that they were so distracted during one of their annual filings of accounts, they are now paying more tax than they should be (and at a time when they are now also earning less because of the caring role).

This theme of enhanced stress was echoed by all, in wanting there to be a greater understanding and recognition of the psychological stresses and mental strains that becoming (and acting as) a carer places on us as freelancers. As one person shared in the chat: 

“It [being a carer] seems to be both an obligation and a choice. There is also the choice to NOT be a carer, but…”

Balancing it all 

We moved on to sharing some of the ways in which we’ve been approaching creating our own balances to keep our earnings as a freelancer continuing, with fulfilling the responsibilities of having a caring role (or in some instances as was shared, having multiple caring roles! One freelancer shared how they’re now the sole unpaid carer for multiple family members in their immediate household):

• Some have chosen to purposefully limit their earnings/avoid certain types of work and clients as part of trying to reduce the increased stress that being a carer brings;
• Some shared how they have identified and accessed counselling support for themselves as part of managing the stress, via memberships of professional freelancing bodies – but all agreed that we should all be trying to access this through other means where we may be able to, as part of trying to manage our personal well-being in this dual role;
• Some shared that despite having less earnings, they have reduced their personal disposable even more in order to pay for private health care plans so that they can better manage their own health needs around those of the people they care for, and in working as a freelancer.

We also talked about how there was a need for better education and understanding about the needs and circumstances of freelancers in our position – 

“if you’re not in the situation, you would never understand just how it feels and what you’re faced with having to manage”.

Which in turn, led to a consensus on the importance that as a community of freelancers we need to take opportunities where we can (and are able/comfortable to) to share our stories in breaking the taboos around unpaid caring as a freelancer, if we’re ever going to be better recognised and encouraged as such, (which includes finding encouragement in/from our peers).

This led to a lively discussion around if / how / when to disclose to our clients that we have a caring role.

'Coming out' as a carer

Nearly all present stated that they’d told at least one client they work with about their caring responsibilities, and that in the main, it strengthened the working relationship by that client then seeing them as subsequently being more authentic – and in our also disclosing this in ways that included examples of how we would mitigate the risk of this impacting on our work with them, that we’re seen as also being more trustworthy, too.

One freelancer shared a story of a how, after disclosing their caring role to a client, the client had stated that they wouldn’t be able to work with them after all, owing to the nature of how the wider programme that they were managing had been designed. However, the following week, the client returned to say that after reflecting with their own colleagues, they’d decided to redesign their programme so that the freelancer could be commissioned to support the delivery of it after all.

This was heard by all in the session as a massive encouragement as it showed:

• If we openly work with them, clients can better understand our circumstances and respond – but they'll probably have never before thought about this, until we forced them to;
• A validation for the value and worth of how that freelancer is viewed by their client.

Another unexpected outcome shared in the session by another freelancer after they ‘came out’ as a carer to a client, was that client suddenly being able to share their own caring story with someone who they knew would ‘get it’ – it built more points of connection with a fellow human being, and highlighted that it’s not just freelancers who struggle to be able to find ways to talk about the realities of being a carer in workplace settings.

What's good for freelancers who care is good for all of us (and vice versa)

Finally, we shared our ‘magic wish’ with each other – the one thing that we would like to see happen or change for freelancers who also having caring responsibilities:

• More chocolate to help us manage our stress;
• More understanding from clients and governments;
• Having some form of basic universal income;
• Bringing in an equality of access to benefits and supports that employees who are carers can access, but which we as freelancers who are also carers currently can’t;
• Changes to the tax systems as part of a wider recognition of financial supports freelancers need, owing to the displacement/loss of earnings that having a caring role forces.

Interestingly, many of these wishes are relevant (to lesser degrees) to all freelancers in all countries, regardless of them having an unpaid caring role or not – which suggests that any changes introduced to support freelancers with caring roles, would also be of benefit the wider freelancing community too (and vice versa).

And none of what was shared by people seemed to be specific to any one country – which suggests that our experiences are pretty universal, meaning that it would be easy to learn from and support each other more in progressing these.

 

Special thanks and recognition 

I'd like to thank those of you who were part of the conversation for your openness, honesty, and bravery in not only talking about your caring stories and experiences, but also for encouraging me to share this all on with the wider world.

I'd also like to recognise those who were there who shared that they're at the start of their own personal caring journey as an existing freelancer, for your proactiveness in seeking opportunities and ways that you can better support yourself and inform the choices you're starting to face (I wish I'd had your foresight when I started my own caring journey 7 years ago...)

And, my thanks again to the organisers of this years’ FBM for allowing me to host this space in it, and for also changing the format this year to a ‘free for all’ access – instead, asking for donations to support pancreatic cancer: https://ti.to/freelance/fbm24/with/freelance-business-month-donation

(if you didn’t already know, freelancing is one of the ‘life activities’ that puts us at an increased risk of developing cancer in the future! https://www.freelanceinformer.com/news/cancer-alert-40-of-cases-linked-to-lifestyle-freelancers-are-you-at-risk/)

 

too many badges for my own good?

Anyone who's seen the opening page of my impact report this year, will have been overwhelmed by the number of logos of bodies that I'm a signatory to/accredited by (and this doesn't include the even longer list of professional memberships I have!).

There's a story behind each one as to why I specifically made the effort to be able to show it off next to my name (in time, cost, and energy) - but none of which are to do with it helping me to win work (my feedback from clients is that they've never been interested in this type of thing when it comes to deciding who to commission to support them).

And I'm wondering if there's therefore a parallel here with the various accreditations, honours, and recognitions that I have in the form of the tins of 'alphabet soup' that I can arrange either side of my name - they've similarly never impacted on the work I've won, and if anything, most of the groups, communities, and people I work with find them a turn-off...

But I'm proud of these recognitions from different bodies as to how I conduct my business, and the impacts it creates (otherwise they wouldn't have accepted my applications to them), so don't want to completely hide them away... which leaves me wondering what the right balance is in shouting about them: both for the value of what they represented, and that they've endorsed me as being 'alright' by their standards.

If you're curious about any of these 'badges', etc, see below for the links to each: 

Organisation of Responsible Business

Charter for Inclusive Entrepreneurship

Prompt Payment Code

Good Business Charter

Fair Tax pledge

Armed Forces Covenant

Co-operativesUK

Social Value UK

Institute of Small Business and Entrepreneurship (ISBE)

Voluntary Sector Studies Network (VSSN)

UK Society for Co-operative Studies

Locality

Better Business Network (BBN)

Federation of Small Businesses (FSB)

Royal Society for the encouragement of Arts, manufactures, and commerce (RSA)

how the tax system unfairly disadvantages smaller businesses (like mine)

As a non-VAT registered business (like half of all the other business registered in the UK), I can't reclaim the tax I'm charged by my suppliers on my running costs (utilities, marketing, insurances, equipment, etc).

This means my overheads and running costs are up to 20% higher than they might be otherwise if I were - and puts me at an unfair financial disadvantage against other firms who are VAT-registered (because they don't have to cover costs in the same way I do, in their being up to 20% lower...).

So, I hear you reasonably ask, why don't I simply register for VAT and stop griping about this?

The answer, I'm afraid, is that if I did I would likely price myself out of being able to win a lot of the work I currently do with smaller charities, community businesses, social enterprises, and the like: once VAT registered I would be legally required to pay the government up to 20% of all the fees I received from clients and customers (before costs) - so to avoid bankrupting myself, this means I'd need to add this additional amount to the invoices I generate. And as most of these groups in turn aren't VAT registered themselves, this means that they suddenly wouldn't be able to afford me: my price would be going up 20% overnight - but I wouldn't be benefitting from any of that additional fee, in having to pass it straight back to the government...

And is that fair? Well, at the time of this blog, there's increasing outcry about the rising cost of petrol and diesel - but as part of this, no-one seems to be pointing out that at least half of what we pay for this commodity is actually tax imposed by the government....

 

Tax is an emotive issue - many people seem to want to avoid paying as much of it as they can, and there are whole industries that exist to this end (for example, did you know that contracts awarded by the government in recent years have been to companies who've knowingly evaded paying nearly £20BILLION that should have been due in taxes?)

Some people feel that they're justified in this stance because they don't trust how the government uses the monies we pay in tax. And whilst I do have sympathy with this, governments change over time. My own position is that I want to try and be as consistent and honest with myself as I can, and so in tax, as with so many other things, I seem to go against 'accepted wisdom', in that I'm always making conscious decisions to increase my tax liability wherever I can... 

https://thirdsectorexpert.blogspot.com/2015/11/bonkers-why-im-staying-as-sole-trader.html

So whilst this post may have started off as a whine about VAT, now you're reaching its conclusion you'll hopefully realise that it's actually about trying to encourage us to have a wider and more grown up debate about tax than we might usually...

to best look after ourselves, we should stop listening to other people's advice on how to it

After my recent "is it just me..?" rant on YouTube about how it costs us self-employed freelance types more to access the same health and well-being supports than our employed counterparts, I started to think a bit more widely on how we might rethink looking after ourselves.

“Putting your needs as priority is not just a nice to have but a necessity if you want to continue doing the good work you set out to do.“ - that’s a statement we’ll all have heard at some point, and found ourselves agreeing with, but likely then struggling to figure out how we actually best manage that.

And whilst for some, we’ll be doing that ‘good work’ as part of a salaried role, for others it’s a core defining feature that informs how we approach everything in our work and lives. And that starts to make it hard when looking at other people’s examples of how they’ve created their ‘perfect balance’* to inform our own approach. (What also makes it harder is that if we’re part of the 4.5 million self-employed, the tax system means it costs us more to invest in our own well-being than our salaried counterparts have to pay for the same activity…)

But I don’t think we should be focussing on creating the perfect ratio of client work, meditating, eating kale, walking the dog, and/or taking holidays in vineyards to ensure we’re best looking after ourselves. The world we live in, and our own personal and family circumstances are constantly changing, so perhaps the ways in which we seek those recharging times/moments should also? 

• Why not start to allow ourselves to be properly invigorated by the outcomes of the ‘good work’ we’re doing? Share in the stories with clients as to the positive outcomes we’ve helped create for people, communities, and the planet in the weeks after we’ve completed our assignments with them (also a good way to potentially generate some new introductions and prospects for repeat business if nothing else!)
• Instead of fixing hard times each day/week for specific activities, try and use spontaneity and serendipity to show yourself some love: as Agent Cooper of the FBI once said, “every day, once a day, give yourself a present (but don’t plan it)”**
• And as much as it’s cliched, find ways to share your stories, frustrations, and hopes with other people who really get what it’s like to run the type of venture you do. We can’t wave a magic wand for you (although, I have do have a magic wand that I use from time to time), but the act of vocalising the stuff in our heads, hearts, and guts, has a way of either giving it the power it needs, or reducing the power it has over us.

Ultimately, this is a theme that loads of other people have/are/will write about, and the subject of countless books, podcasts, and TED talks. All of which will be useful for someone (usually the person who created them), but those people aren’t you - and only you will know what works best for you in helping you not ‘see the lights go out’. What works for you will be right for you - try out different things, be kind to yourself if none of them seem to work to begin with; keep trying until you find those things that were always meant for you.

Perhaps the hardest part in all of this though, is that YOU have to make the decision to invest in looking after yourself. And that’s probably the hardest part of figuring out how to look after yourself when we see the need around us that others are constantly struggling with. It took me over 20 years to be OK with allowing myself to be ‘selfish’ from time to time. Hopefully it won’t ever be that long for anyone else.

*the ‘perfect balance’ only ever exists in Instagram posts

** If you don’t recognise this quote or the Agent’s name, then go and binge watch Twin Peaks as soon as you can

sharing squeaky bum moments, swearing, and bread - my contributions to European Freelancers Week 2021

Each year, there are initiatives and campaigns to help highlight the contribution that freelancers (like me) make to our economy and society, and also the realities and challenges we face in being overlooked in government business policy (including being taxed at higher rates than other types of employees).

One such initiative is European Freelancers Week, which each year stages a week (and 2 weekends) of events, gatherings, and conversations across Europe.

This year, part of its programme was an on-line conversation hosted by Freelance Heroes, and I found that my calendar wasn't demanding that I be delivering a workshop or meeting with a client at the time, so took the opportunity to 'click in'.

Now, my intention of doing this was to listen in to others' experiences, insights, and ideas, as part of the wider CPD framework I've designed for myself over the last 16 years - helping me better reflect on my own thoughts and practices.

But as the conversation progressed, one of the key participants had to offer apologies and leave early, and the host of the call spotted I was watching along and press-ganged me into joining the panel - with no intention to have been an active part of any of the EFweek2021 events this year, I hadn't given any thought to what I might contribute or argue...

(I start to appear at around the 34:30 mark - https://youtu.be/vo_-ACnhzyE?t=2070) 

Watching the call back, I realise that my unscripted and spontaneous offerings (which saw me talking about squeaky bum moments, swearing live, and the importance of bread), may not have been what people might have expected to be hearing about - but in the spirit of EFweek2021 being about allowing us to all share our voices with each other in mutual encouragement and support, it's hopefully added something to the mix that enriched the overall experience?

death and the entrepreneur

There's a famous adage that goes along the lines of "there are only 2 certainties in life: death and taxes".

And whilst there seems to be a constant flow of articles, conversations, arguments, and such like around tax and business, it seems no-one wants to talk about death and business.

Specifically - what happens to your business when you die.

My reasons for such apparent morbidity in starting to explore this theme are multiple - I was asked to support a Board of Directors work out what to do with the business that they were responsible for after its founder and chief exec unexpectedly passed in their sleep (not that easy when they kept all the passwords and security details for the bank, Companies House, HMRC, etc in their head, and for various reasons it wasn't possible for me to obtain a copy of their death certificate from their grieving spouse...); and I'm also occasionally approached by founders of social enterprises who've recently received terminal diagnoses and are keen to try and ensure that their efforts in this life will have a worthwhile legacy.

And there's a clear business case for trying to get us to talk about death more openly too - research shows that most business continue to struggle for years after their founders death.

Ultimately, I think it comes down to succession - whilst we may be very good at planning for all sorts of risks and contingencies in our enterprises, charities, and others, we rarely (if ever) plan for us not to be a part of it, and think about what sort of future it should (or could) have without us being involved with it.

We seem to have also fetishised entrepreneurs - tech entrepreneurs and hailed and presented as saviours of our economy; health ones will save us from suffering illness of all types; and social ones will fix all the problems in our local communities; with nothing but the magical power of their will and without the need to rely on others to get there. That's a lot of expectation to heap on someone who's just trying to see how far their idea will go... 

As entrepreneurs, we're already more likely to suffer mental ill health (which seems to be repeatedly quietly glossed over); have our relationships with friends and family suffer; and be more likely to be victims of targeted crime.

So if we die unexpectedly, then the venture that we've gambled all of the above on, will likely crumble and be messily wound up. It will leave people upset and angry, and mean that all of the above we suffered was for nothing, as it's likely that there'll be no legacy to what we were trying to build up (because we never thought we could die because we're the ones who are supposed to be saving everything and everyone else).

In those rare instances where entrepreneurs do dally with thoughts about the grim reaper, it's usually a conversation with their accountants who direct them as to the ways in which they can get the most money out of the business they've built to date to enjoy their final months with - or can soften the loss on their immediate family.

It seems to me that as entrepreneurs we don't talk about our own mortality enough in ensuring that the visions which have driven us to risk everything we have to realise them, will have a good chance of continuing to impact the world and change communities for the better, even if we're not around to celebrate that as it happens.

Death is already far too taboo a subject, and as such, creates lots of unnecessary problems for those around us when we leave this life.

So - what's your plan for your enterprise (be it social, charitable, co-operative, private or other) if you were to suddenly not wake up, or receive the news from your Doctor that none of us ever want to hear?

the impact of a pandemic on the impact we create

Some of you reading this will be aware that for the last 15 years, I've annually published an 'impact report' on my activities as a sole trader/freelancer - and each time I do, I try and pause to reflect here on some aspect of it that's particularly struck me.

Most businesses, charities, and social enterprises who are currently talking about the impact they've created through the pandemic, successive lock-downs, and the disruption to communities and people's lives over the last year, seem to be largely focussing on what they've done over this last year. Which is fine and proper, but it doesn't help us fully understand the wider, longer-term impacts of the pandemic on how we try and achieve our respective missions - only what our immediate responses to it have been.

But I've been using a consistent framework and measures in how I monitor, report, and reflect on, my impact for over a decade. That means that this year's impact report has allowed me to better explore just how far the disruption to how we work, think, and feel, has truly had on my practices - and as such, I'm better able to consider what changes I might need to introduce as we emerge into our brave new vaccinated world (and which I can politely pass on).

Spoiler alert: it seems the pandemic has had little (or as expected) effect on the metrics I use to capture the impacts I create across different themes.

But what I do find of particular note is:

tax paid: it's been already shown by others that in being self-employed, I already pay proportionately more tax on my income than my counterparts both on payrolls, and those taking their earnings as company Directors. But this year, the amount of tax I've paid has significantly increased - and tracking this back into the data shows that it's because I was fortunate to be eligible for some of the government's coronavirus business support schemes: but that support I received to help me sustain my business (and family) was always going to be subject to being taxed - so although it may have initially seemed I could have breathed a sign of relief when HMRC said I was eligible to apply for SEISS, I always knew that there'd be at least one painful sting in the tail associated with it...

grace: in my last impact report, I'd started to capture and monetise my 'grace': the amount of lost earnings I'd suffered due to people either forgetting that we had arranged to speak/meet, or cancelling training sessions with only a days' notice (with no recourse for me to claim any late cancellation fee). Perhaps the most distressing part of this year's impact report is not that this figure hasn't changed, it's that if anything, its actually increased. Which means that the respect we're showing each other in making sure we turn up (or phone in/log on) when we've agreed to, or at the very least, sending apologies in good time if we know we can't, is on the wane...

But there's lots of other things in this years report. It now runs to 11 pages, with 12 indicators, 3 charts, 3 tables, and a slew of summary case studies and testimonials - in the first year I created it, covering the year 2006-7, it only had 3 numbers and was a footnote in my corporate CV!

And you can view it in all it's glorious technicolour and images, here.

Therefore, please do take a look through it - I'd be keen to hear what strikes you about it as being of particular interest in help me better understand it myself, and to therefore continue to create as much positive impact as I can into the future.

is it any wonder we're all so confused about tax?

Happy 6th April - the first day of the new (tax) year in the UK.

I agree - it's a bonkers system we have that means for the 5 million+ of us who are self-employed or doing personal tax returns, we can't divide up our income and receipts neatly according to the annual cycle of one calendar year ending on Dec 31st, and the next year starting on Jan 1st - or even according to the quarterly cycle of 3 months used by HMRC for VAT returns.

It's bonkers-ness is also compounded by limited companies being able to (re)align their accounting periods to line up with the calendar year, but not us as freelancers and sole traders.

There's a good comprehensive story telling of why the 6th April is the date that the government has decreed should be the start of the year for tax purposes over on the Tax Advisory Partnership's website 

(TL:DR and spoiler alert: it's to do with Britain wanting to have it's own calendar system that was at odds with the one that the rest of the world had adopted, and the Treasury wanting to max out on what it could demand from us as hard working people).

But then add in a few extra oddities about the tax system here in the UK. For example:

- VAT can be charged at 3 different amounts (and it being added to the price we pay depends on who we are, what we're using it for, and other factors)

- National Insurance contributions are deducted from our earnings at 4 different levels (depending on who employs us, and how)

Further, for organisations, add into this things like business rates on commercial premises which are managed by local authorities (so what you pay in one neighbourhood may be markedly different to what you pay in an adjoining town for the same space).

And if you drive a car, then you're paying taxes on:

- the purchase cost of the car,

- annual car tax,

- tax on the fuel you use to travel around in it;

- tax on any repairs or parts you buy for it,

- tax on the insurance you have for it.

Is it any wonder that (1) most people are confused about tax and the tax that they owe; and (2) that most people therefore try and avoid paying tax in light of our paying so much of it everywhere all the time (with little apparent benefit to us or the wider community)?

why the lifeline of SEISS may bankrupt us next year...

At the start of the pandemic, roughly 5 million of us were self-employed.

At the start of the pandemic, government made financial support available to business owners (in the form of grants linked to business rates) and employees (in the form of the furlough scheme).

Only after what seemed an eternity of panic and doubt, did government make an equivalent scheme for us in the form of the SEISS (except about half of us aren't actually eligible to apply for it!).

At the time, may argued that this was further evidence that despite their rhetoric about entrepreneurship, the current administration don't actually understand or care about us unless we're employing lots of people (despite the fact that we pay more tax than our employed counterparts, and other types of business owners). And this led to lobbies, campaigns, and the formation of #ExcludedUK to try and challenge this discrimination.

For those of us who are eligible, the SEISS grant was a lifeline (because even if we can land paying work, we all know it can sometimes take months to get paid which means weeks of little, if any, income to keep the lights on with).

But for those of us who began breathing sighs of relief, having gone through the small print and talked with others who haven't, we may actually be worse off next year for having received it, than if we'd not been eligible for it in the first place...

Unlike the business rate grants and employee furlough schemes, the SEISS grant carries a clause that says we may have to pay it back if HMRC deem that we managed to end this current financial year in a better place than we feared we would (perhaps because in the last few weeks of it, we suddenly land a large contract or finally get paid those back-invoices we never thought would be honoured). But we don't know exactly what the threshold for that looks like, or might be, beyond terms and phrases that are as equally vague as "substantial meal" is for pub landlords.

We'll only know if this is the case after we've done our tax returns, and as the SEISS grants are taxable, we'll have already paid about 20% of them back as tax. 

So if HMRC deem that we shouldn't have received the grant after all, the SEISS amount will magically transform from a grant into a very short-term loan that carries at least 20% interest - 20% being the amount we've already paid in tax on it, and then there's additional interest on the full amount again unless we repay it straight away. It's cheaper to take a bounce-back loan, or arrange  (and you have more time to repay it).

But there's more...

Lets say that you also pay child maintenance through the Child Maintenance Agency. They calculate what you should pay annually, based on your last tax return. Which means that for next year, the SEISS grant(s) you received will be counted as part of your income/earnings (because it's taxable income), pushing you into paying a higher amount of child maintenance. But if you've had to pay the grant (plus at least 20% interest) back, then they've fixed your amount too high. You're already facing the threat of legal action from HMRC to repay money that you no longer have, and now are also being forced to pay levels of child maintenance that haven't been worked out properly that will stretch you even further than you are now.

The pandemic and lack of government support for the self-employed has already seen nearly half a million of us giving up our enterprises, with many more seriously considering doing the same by the end of this year.

My concern is that the SEISS grant that initially seemed like a lifeline to some, actually shows that the government who've designed them have a contempt for people who are self-employed based on larger business owners and salaried workers not facing any such fears, because of the grant support they've received has no such risks attached.

All we've ever asked for as the self-employed is parity with our employed counterparts (who already enjoy far greater privileges than us in terms of lower taxes, pension contributions, better pay, and such like). Initially this parity was about making sure we can all have access to some form of support, but maybe we should also be asking for this support to be equally non-discriminatory in the risks it forces us to take when/if accepting it?

UPDATE AS AT 10 MAY 2021

and so the panic of having to repay these grants begins (but still with very unclear guidance...): https://www.gov.uk/government/publications/penalties-for-not-telling-hmrc-about-self-employment-income-support-scheme-grant-overpayments-ccfs47

sources and references

https://www.statista.com/statistics/318234/united-kingdom-self-employed/ 

https://thirdsectorexpert.blogspot.com/2018/02/who-in-their-right-mind-would-be-self.html

https://www.accountancyage.com/2020/08/07/self-employment-income-support-is-it-payback-time/

https://www.excludeduk.org/excluded-uk-an-inclusive-alliance-for-the-excluded 

https://www.lse.ac.uk/News/Latest-news-from-LSE/2020/K-November/Hours-and-incomes-of-self-employed-workers-stayed-low-over-summer 

https://www.altfi.com/article/5997_uk-smes-now-wait-an-average-of-23-days-for-late-payments

https://www.bbc.co.uk/news/uk-55129828 

compared to what..?

There are lots of reasons banded about why we should try and be capturing and reporting the social impact/value of our enterprises - and that's not just something which is confined to the social enterprise or charity world: the private sector have been pioneering a lot of clever approaches to it to over recent years as well (Puma's environmental Profit & Loss, the international impact accounting standard, and McDonald's own infographics to name but a few...)

However, one of the key questions that any impact or outcomes reporting should answer is "so what?" - what difference has achieving this reduction, or engaging that number of people, made? But within the context of impact reporting, I think the "so what?" question also needs to be extended to be framed as "compared to what?". If an enterprise reports that it's reduced carbon emissions by 10%, is that good or bad? It might compare itself to its performance last year, but that's not really that objective or honest of a measure - it's surely only when we can compare that 10% to what comparable enterprises have been able to achieve that we can fully appreciate if that's a score to be scoffed at, or to be applauded.

And yet, how many social impact reports seek to reference any external benchmarks or comparisons in presenting their findings?

As ever, I'm not one to suggest something without being willing to try it myself - so this year I've sought to source external benchmarks against my own social impact reporting framework.

And I wanted to see what people thought about this before blogging about it, so published the report via twitter, and various LinkedIN groups, sat back, and waited for a week or two, before sitting down to draft this reflection.

And what the wider world seems to think based on engagements and comments to the post about the report is that while my doing an impact report on myself is a good idea, no-one really engaged or picked up on the fact that I'm starting to benchmark it externally to see if what seems to be a 'good' figure is really good, or if its outstanding instead.

For myself, I think that in finding I'm contributing more in taxes than my counterparts in regular employment is an encouraging sign that I'm still sticking to my principles of wanting to support public services, and my investing more in my ongoing CPD to keep myself 'on top my game' should be a great reassurance to clients (as well as all the awards I seem to keep winning...)

And while it's not perfect by any means (kudos to Liam Black for keeping me grounded as ever with it via his latest tweet), it's surely a start in furthering the conversation and encouragements for things like this to become more commonplace and therefore useful in helping us make better informed decisions about how we're approaching trying to make the changes in the community / society / world we seek to? 

You can access the full report via this link - https://www.scribd.com/document/348140111/Adrian-Ashton-Social-Impact-Report-2016-7

bonkers? why I'm staying as a sole trader, and not setting myself up as a limited company

Many freelancers and the self-employed are also limited companies – while this isn’t a pre-requisite for anyone wanting to go into business for themselves, many see it as an attractive option for all sorts of reasons including “tax efficiencies”, limiting personal risk, and being able to more easily engage with some procurement systems of other organisations so that they can do business with them.

But I chose a long time ago not to incorporate myself (despite the apparent benefits that doing so would offer me), and I thought it was about time as to why I ‘fessed up as to why this is:

1. the tax question – although I don’t know of any empirical studies to back this assertion up, my perception is that most self-employed who incorporate themselves do so to take advantage of the different tax rules that apply to companies, and as such are able to reduce the extent of their earnings that are ‘lost’ to tax payments. But I actually feel quite privileged to be able to pay tax, and while I may not fully agree with how the government decides to spend it all, I like knowing that there’s money in the pot to pay for teachers at the schools my boys go to, for hospitals to be able to stay open, and for street lights to be able to stay turned on at night. It’s also a way that I can further manifest some of my Christian values – I can’t practically care for all of my neighbours in need everywhere, but through tax payments, I can know that there’s emergency help available to them when they might need it most (wherever they may be in the world).
2. the risk question – given that in the eyes of the law, a company becomes a legal person in its own right, then if things start to go ‘pear shaped’, its the company that would take the hit not the individual person. And while this may be more appropriate for some with regards to the types of risk their business may entail, for me, I’d be concerned that it would start to make me less stringent with myself: after all, if I knew that if things didn’t work out I wouldn’t have to take legal responsibility for any fallout from clients, investors, etc, why should I try harder to make sure it works? 
3. the ability to get work –oddly, most local authorities can’t directly commission me because of the way in which the rules they have to abide by work, yet national government departments and bodies have never had any issue with contracting with me... however, I am aware that in some instances, I can’t bid for contracts because I’m not the ‘right shape’ (i.e. not a company). But there are ways around this that I think are actually more beneficial in the long-term: I can collaborate and partner with other companies to jointly bid for these contracts, and in doing so build more mutual support and resilience into myself and other companies – better relationships all round, rather than trying to do everything by myself (and it can be lonely enough at the best of times in being a freelancer).

So there you have it – the reasons why I’ve no immediate desire to incorporate myself into a company (other than the hassle of the extra paperwork it would entail...)

But maybe I’ve missed the point somewhere? Would be very keen to hear from fellow freelancers and self-employed to know why they are/are not companies themselves...

Bah Humbug - why I won’t be celebrating Christmas…(as much as my employed counterparts)

Its that most magical time of the year again when everyone who’s fortunate enough to be in employment gets invited to ‘the works do’ - a chance to relax with colleagues and friends, reflect on the highs and lows of the year just passed, and generally make merry. A time to be encouraged and re-invigorated.

But not for me. Not because I’ve not been invited to others’ works do’s (‘cos I have, but have had to turn them all down owing to other clients needing me to support them fix problems when those parties are taking place - I’m afraid that for the time of life at the moment, the choice of earning money to pay bills always has to come first), but because as a sole trader, the tax office discriminates against me being able to have my own celebrations in the way that my employed counterparts can:

You see, the tax office allows for a spend of up to £150 per employee in respect of Christmas parties (so if your boss is saying they can’t afford anything more than limp sandwiches and  1 bottle of cheap plonk between 15 people, you can set them straight!). But this only applies to people who are in the employ of others - not those who are self-employed. Any celebratory costs I incur on behalf of myself and others I‘m fortunate enough to work with and might choose to partake of a mice pie and sherry with, I have to bear the full costs of at my personal expense after tax…

Given that the growth of the business population seems to be increasingly rooted in people like me: the self-employed, surely its time for HMRC to review these rules so we don’t have to miss out on the festivities that others are enjoying…?

But this is Christmas time - not a time to be melancholic and upset, but a time to try and spread goodwill: so to all my fellow sole traders, you can hopefully draw some moral comfort from this in that you’re not the only one to feel you’re missing out on the egg nog and turn under the mistletoe;

to everyone else-  warmest wishes of the season to you and your loved ones;

as for me - I’m off to seek what’s on special offer at my local off-license, find a limp sandwich and pull my cracker by myself…

Where next for social enterprise in the 'Big Society'?

There’s increasing interest from politicians and investors for social enterprises to enter ‘non-traditional’ market places (apparently there’s a belief that social enterprises don’t usually foray out of construction, catering or childcare into markets like telecoms, IT, financial services, etc etc...), especially into industries where private businesses have failed.

So – leaving aside the argument that if other businesses fail in these markets, where is the logic in us entering them?, this may seem fair enough, but ask any actual trading business about their entering new marketplaces and they’ve very hesitant. This is because this strategy for business growth is proven to be the most risky, and most likely to fail.

Therefore we need an incentive – if the state wants us to take such high risks, then they should recognise the cost to us for delivering their agenda (assuming that we decide it’s actually a good idea to enter new marketplaces). This doesn’t and shouldn’t be through grants, but maybe through tax and investment reliefs, interest free loans, and so on – possibly the need that the big society bank that’s being created could meet?

But if we do diversify and enter these ‘non-traditional’ market places, ultimately it should be because we see that there’s business sense in doing so – otherwise we change into charities or subsidiaries of the state and loose our distinctiveness.

how pubs are like charities (or why we should spend more time in our local...)

a recent report by the ippr argues that local pubs should benefit from mandatory rate relief in the same way that charties do - its reasoning is that pubs, like charities, offer a vital service to their local communities, acting as a focal point for meetings, events, sharing news and everything else that creates our 'social capital'.

initially, I thought "but what about community centres", but then realised that actually pubs may indeed offer a more valuable resource to their communities: pubs are seen as relaxed, informal venues where people are more open to ideas and each other in ways that are more spontaneous and so creative, whereas community centres tend to be quite formal, structured affairs, and while offering valuable space for meetings and activities, are less able to encourage such dynamism as can be found down your local in an evening...

so - who's coming for a drink? next rounds' on me...



UPDATE: 22 March 2010

it seems the government may have picked up on this post and and a more recent one about the value of pubs, and have recently announced a multi-million pound programme of support to enable communities to take over their own pubs!
news item



UPDATE 27 Feb 2012

it now seems that pubs are being touted as the next ideal workspaces for mobile and homeworkers too! see - http://blog.worksnug.com/post/12923085754/two-pints-of-lager-and-wi-fi-please-pubworking-an

the true value of pedal power

A recent feature in New Start magazine highlighted the problems that increasing volumes of journeys by car are causing to our neighbourhoods and profiled ways in which encouraging cycling can perhaps best address this (Driven to the Threshold, New Start, Apr 2009).

As someone who has a concern for the environmental impact that I create, and seek to measure how this and my other values are being realised and the outcomes that occur through a social accounting process, I've always measured the different modes of transport I use as a self-employed consultant-type.
These have always posted to my website for the last 4 years, and I'm pleased to say that in answering the call to use the car less, I managed to use my bicycle for 18% of all journeys I made in the last year (for comparison 26% were by car, and the national average for bicycle journeys in the UK is a paltry 2%).

And this isn't just about me feeling self-righteous, but wanting to show that having concern for the environment can be reconciled to the demands and structures of todays economic environment. I work all over the country, yet am able to make nearly 1 in 5 of all journeys by pedal power. And this value of enviromental concern has other benefits as well: in addition to the (yawn) beneits to health (which everyone knows about), there are also financial benefits: most people know that the tax office offers a claimable expenses rate of 40p/mile for business travel when the journey is by car, but how many know that there's a rate for bicycles too? At 20p/mile it'll soon mean that I'll be making money when cycling!

(see also - www.cyclescheme.co.uk for tax free bikes for work)