Monday, 13 October 2014

Cause and Effect - The Small Business Perspective

2 out of the 3 main UK political parties have pledged to raise the income tax threshold to £12,500. That means that, if they go through with it, anybody on minimum wage under 21 won't pay tax and anybody over 21 will need to do over 37 hours per week before they do.

And that's the problem right there. If my friends and family's experiences are anything to go by, it's well nigh impossible to get a minimum wage job that guarantees more than 30 hours per week. That's not enough to survive on without benefits in many cases.

Then there's the self-employed. How does the income tax threshold affect them? It differs depending on whether you're a sole trader or a director of a very small limited company.

But what many of us in network marketing will point out is that running a business in parallel with your PAYE earnings is a good way to minimise your tax burden, as well as netting you that extra money to drive down debt or just save up for a new holiday/car/washing machine/whatever.

And if you're unemployed, then there are benefits that you can claim whilst you're getting your business up and running.

Let me know if you want more information. I'm here to help.