The European Commission has confirmed regulatory reforms that help cut down on red tape for small business like those in contracting. And the UK Government is supporting the move.
EU Mulls The 'Micro-Enterprise'
Even more important: the Commission is actively considering the creation of a special category of business--the so-called 'micro-enterprise' with less than 10 employees. These businesses would be exempt from a whole slew of accounting and reporting requirements: running a small business could become a much simpler affair if these proposals are adopted.
As European Commissioner for Internal Markets Charlie McCreevy says:''The EU is delivering on the promises we have made to simplify the environment for small business.''
How The Microenterprise Concept Improves Contracting
The microenterprise concept is one that could make a big difference to contracting if it were to incorporate the proposals that have been made for it at the European level. Running a small business would become transparent and logical, and contractors, like other small businesses, would have a different status which would keep it all simple.
Simplified Reporting
The EU is delivering on the promises we have made to simplify the environment for small business
Charlie McCreevy-EC Internal Affairs Commissioner
The demands on contractors for reporting in annual accounts to Companies House could be drastically simplified if the European proposals are adopted. This would cut accounting costs for contractors and make it easier for us to collect data for our accountants. The rather complex rules that apply to larger companies will no longer apply to companies that we contractors typically run.
Further, the corporate tax return would cease to involve a series of complex calculations, and would become much easier to handle. Much of the onus here falls on the accountant you work with, but that work would become less difficult and costly.
More Reforms To Follow
McCreevy has promised even greater reforms to be announced this summer. There is unfortunately still controversy over the microenterprise concept within the Internal Market and Enterprise Directorate-Generals--these are the European Commission departments that handle business administration affairs. But for once the debate is to see some result within a short period, and is not expected to last years as it has in some cases.
Labour Government Working With EC
It is refreshing to find that the same Labour Government which has repeatedly burdened our industry with increased regulation, not to mention confusing and ill-drafted legislation, is supporting this European Commission effort. John Hutton, secretary of state for the Department for Business, Enterprise and Regulatory Reform (BERR) has been actively lobbying in Brussels to create a better climate for small business.
Hutton: Consider Impact Before Making A Law
Says Hutton: ''It is critical, now more than ever, that the EU considers the impacts of new laws on small business before they are agreed – identifying at an early stage potential impacts and unintended consequences.''
It is critical, now more than ever, that the EU considers the impacts of new laws on small business before they are agreed; identifying at an early stage potential impacts and unintended consequences
John Hutton-BERR
This is a laudable statement of policy and one which we sincerely hope Hutton will apply to legislation like our terrible IR35 and managed service company laws which have done so much to disrupt contracting in the UK.