Increase in contributions on 1 January 2015, exclusion of a large number of activities, obligation to spend an internship – costly – at the installation, acute suspicions of disguised employment, qualification as “dummy companies”, application of the CFE tax (in addition to the housing tax), etc. This is for French auto-entrepreneurs. For English self-employment entrepreneurs, the grass is at least greener. Indeed, the English government does not hide its support for these self-employed workers and is launching new measures to simplify their lives and save them money.
The English government supports home-based entrepreneurs
With higher growth and a lower-than-expected deficit, the British economy is doing better and recovering, with recovery taking place in all sectors of the economy After an austerity cure, David Cameron’s government has cleaned up public finances and is pursuing its objective: the best way to lower the cost of living is to make “tough decisions on budget cuts”, in order to leave future generations with a “state we can afford”. As a follow-up to the actions already carried out, the government announced on 15 August a series of measures to support home-based entrepreneurs, seeing in this “self-employment” an interest in reducing unemployment and creating jobs.
The English model: boosting the creation of home self-employment by exempting creators from property tax
Among these measures, one that will make French entrepreneurs who work from home jealous: at a time when the French government decides that self-employed entrepreneurs will have to pay the CFE tax (in addition to their housing tax), the British government has just announced an exemption from property tax (the equivalent of our CFE): they will just have to pay, on a personal basis, their housing tax.
Self-employed people are a recognised asset in the UK economy and the majority of professionals choose “self-employment” because they want to take control of their lives and manage their time. A growing practice, including Andrew Mitchell, who has been independent for 4 years and helps marketing agencies develop their revenue, is an example.
Removing barriers and simplifying business creation
There are 2.9 million home-based businesses representing £300 billion of revenue (€374 million). It is a sector that the government wishes to support, aware of its importance. The new measures aim to facilitate access to business creation by facilitating the procedures: until now subject to the agreement of their owner to carry out their activity at home, entrepreneurs will be able to apply for it using a simple form. Trends suggest that by 2015 there will be more “self-employed” than employees in the public sector.
Key jobs in various sectors of activity
By removing barriers to home-based business creation, the aim is to support British entrepreneurs at all stages of their business development. The professions represented by these one-man businesses cover a wide range of professions: accountants, manufacturers of frozen baby food, books, children’s fashion, etc. These companies, long considered to be of little economic importance, are taking centre stage and the English government’s action aims to enable the sector to continue its development, a commitment to make life easier for these small businesses and to support them in their growth. It remains to be seen whether these measures will change the daily lives of entrepreneurs? But it is certain that French individual entrepreneurs working from home would dream of this exemption, the equivalent of our CFE. More generally, we can imagine that in France, with the increase in the number of auto-entrepreneurs, this regime will be better considered in a few years.