Employer duties stifle sole traders' growth aspirations - BCC
05.07.11
The introduction of governor duties is seen as the top barrier to sole traders taking on their first member of staff, a survey finds.
A returns of 1,127 sole traders by the British Chambers of Commerce found almost one-in-three businesspeople (32%) saw the 2012 employer duties as a impediment to taking on staff.
The BCC said for many owner-managers the 3% minimum pension contribution businesses will have to pay towards a caduceus pensions will bring with it indirect costs in setting up pension schemes, and changes to payroll systems.
And it called for regulation reform to encourage 3.6 million sole traders in the UK to take on their first employee by exempting them from burdensome employment legislation.
BCC commandant of policy Adam Marshall said: "Exempting new businesses from upcoming pension reforms, either for their first three years in trade or until they have more than ten employees, would remove the one of the biggest barriers to job creation. In addition, sole traders tell us that a reduced position of employer National Insurance contributions would encourage them to take on their first staff member.
Source: Professional Pensions