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Two-thirds of micro-businesses feel the tax system is unfair

For Crunch Chorus we recently commissioned OnePoll to ask micro-businesses their views on how government and politics is serving them. The results show how much work there is to be done to establish confidence that those in public service have concern for the micro-business sector’s wellbeing.

Our research found a mammoth two-thirds of key decision-makers in micro-businesses say that the tax system doesn’t treat businesses of all sizes equally and fairly. Just one in 10 business owners surveyed are satisfied with the way the tax and benefits system treats the country’s smallest firms.

With 8.4 million people working in the micro-business sector, this level of dissatisfaction should be a wakeup call for the future of how tax policy is planned. Clearly recent plans such as the hikes in dividend taxes aren’t helping.

We also found that almost half (43%) of micro-business owners feel powerless to influence government policy, with no ‘voice’ representing their biggest business concern. The areas where business owners say they need the most support include late payments (one fifth ranked it as the first area they would ask for support) and cash-flow management (18%). Of those surveyed, 79% are not currently a member of any business group.

We believe that as a new free business group exclusively to support and campaign for micro-businesses, Crunch Chorus is an important contribution to shifting the public debate in favour of the nation’s freelancers, contractors, sole traders and entrepreneurs.

*The research commissioned by Crunch Chorus surveyed 500 decision makers within micro-businesses (companies with between 1 and 9 members of staff) across the UK from the 18 to 21 April 2016.


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