• Ed Molyneux, CEO and co-founder at FreeAgent


• 01.09.2016 10:15 am
undisclosed

The European Commission’s decision will be welcome news for freelancers and micro-businesses - many of whom feel that they are getting a raw deal when it comes to paying tax.

We recently carried out research that found seven in ten (71%) UK micro-business owners in the UK felt that larger businesses benefited more from the tax system than they did. Projected across the UK’s 5.2 million-strong micro-businesses sector, which accounts for 95% of all businesses, that equates to millions of self-employed people who view the tax system with a sense of injustice.

We know that corporation tax is often a stumbling block for micro-business owners to deal with, especially when they change from being a sole trader to a limited company. It can be a very confusing tax to understand and many of them have to work very hard to calculate the correct amount to pay - with the shadow of the tax man looming if they get things wrong.

I’m sure many micro-business owners will therefore be happy to see a major multinational company being made to pay their fair share.