Commercial disputes to rise with more start-ups?

Published on 9 Aug 2010 under category: legal

Commercial disputes could increase in the UK as more people plan to start up their own businesses.
The Federation of Small Businesses (FSB) has estimated that 300,000 people will become entrepreneurs in this year alone.
Rather than facing job insecurity and inflexible employment terms, individuals could choose to tough it out and open up their dream business.
However, many could find themselves in commercial litigation because of their tax status.
The FSB has called on HM Revenue and Customs to only place individuals into PAYE status if there is a "material change" in their circumstances.
Commenting on the body's stance, FSB chairman John Walker said: "Those who do become self-employed need to beware of the tax man who is penalising these people when they work for other companies, putting them in the PAYE bucket and turning their legal status from self-employed to an employee.
"The FSB is calling on HMRC to respect people's wishes to be self-employed and for the HMRC to cease their tactics in pushing people into the PAYE net."

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