Self-employed would let SMEs avoid red tape

SMALL and medium sized companies should be able to swerve burdensome regulations by employing their workers as self-employed contractors, a think tank will argue today.

“SMEs currently face prohibitive levels of regulation and taxes, and the government must focus on reducing these costs rather than pushing a myriad of schemes of government assistance and support,” the Adam Smith Institute (ASI) states.

Much red tape can be dealt with easily by large firms but poses an “insurmountable burden” to smaller companies, according to Dr Madsen Pirie -- author of The Growth Agenda: The Self-Employment Option.

Allowing firms to classify employees as self-employed workers would also relieve the strain of regulations from Brussels, the ASI says.

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