Self-employed Britons in the UK earn 40% less than employees

/ Posted By - Bradleys Accountants / Categories - Accounting for Individuals

Research has revealed that a self-employed Briton earns 40% less than a typical employee. The report is said to be the most in-depth analysis of the current self-employed workforce in the UK and how it is changing.

Independent research organisation – Resolution Foundation, who undertook the study, revealed a drop of 20% in weekly earnings for self-employed workers between the years 2007 and 2012. On the other hand, over the same period, full-time employees saw their weekly pay drop by only 6% on average.

Chief executive of Resolution Foundation, Gavin Kelly said, “Self-employment is often a highly precarious existence which isn’t that well supported by public policy. High levels of self-employment seem likely to be here to stay and policy-makers have some catching up to do.”

In a separate survey commissioned by Resolution Foundation and conducted by researcher Ipsos-Mori, it was found that close to 73% of the people who had become self-employed in the last 5 years did so mainly or partly due to personal preference, though a growing minority said that it was due to a lack of better alternatives.

    Subscribe to our newsletter

    Over 83% of the self-employed workforce surveyed said that they choose to work for themselves while 17% said they would prefer to be an employee. This figure excludes those who answered “don’t know”.

    Chief executive of Ipsos-Mori, Ben Page said, “Self-employment has grown across most parts of the workforce and sizeable number of the self-employed would describe themselves as entrepreneurs. This confidence is at odds with what we know are the associated difficulties – especially financial insecurity and unpredictability – but only a quarter of the self-employed say they would prefer a regular job.”

    Since the start of the recession, growth in the self-employment sector has quickly overtaken the growth in self-employed jobs – between the years 2008 and 2014, self employment has grown by 666,000 while employees increased by 133,000.

    Related Articles

    Autumn statement 2022 – What does it…
    | Accounting for Individuals

    The economic stability of any country depends on fiscal sustainability, and the Autumn Statement outlines … Read more

    How to get ready for filing your…
    | Accounting for Individuals, Advice for Small Businesses

    If you run your own business, earn capital gains or otherwise have income apart from … Read more

    Self Assessment tax return preparation tips for…
    | Accounting for Individuals, Advice for Small Businesses

    Tax season is not such a big deal if you are a salaried employee. Most … Read more


    Subscribe to the newsletter

    Know about latest accountancy updates, company news and business growth tips. Every month, in your inbox

      Subscribe to our newsletter