With a little help from business commentator Paul Bridle we ask: What do self-employed educators need from Government and how likely are we to get it from the Conservative-Lib Dem coalition that makes up the next Parliament?

 

1. Less burdensome taxation

We need a taxation system that recognises the unique challenges that beset entrepreneurs and SMEs trying to grow or invest in business, so the Conservative’s plan to cut corporation tax for small companies from 22p to 20p is a good start. But will they keep Labour’s Time to Pay scheme, which allows deferment of tax payments. It is claimed to have helped over 200,000 small businesses stay afloat through the recession and Labour had promised the scheme would be extended for the whole of its next Parliament.

Ditto for the 50p tax on every pound earned over £150,000 and the removal of personal tax-free allowances for people with incomes over £100,000. Tutors and other self-employed educators would welcome its repeal.

“There is a lot of talk about cuts and raising taxes but what’s really needed is for businesses to earn more money, and you do that by improved opportunities for entrepreneurship and business,” says Paul.
    

2. Fewer regulations

The Research & Development Tax Credit scheme is one of a number of financial schemes set up to help SMEs claim refunds on business expenditure but only a fraction of those eligible claim. Why? Something to do with the 80-page guide booklet and risk being fined 100% of your claim value if you fail to meet its stringent standards. While the Lib Dems have promised a consultation “to identify regulations for repeal, reduction or simplification”, promised solutions from the Conservative government include a one-click registration model to make it easier to register a new business and fewer restrictions on social tenants to become entrepreneurs.

“Business needs less regulations and the freedom to invest,” says Paul. “It is harder than ever to employ people now and there is no incentive to invest. Self-employed people have a limit as to what they can do on their own. So their growth lies in being able to employ someone and that is both expensive and requires so much in the way of rules and regulations, that they shy away from it.“

3. A pro-enterprise culture

The best way to create sustainability is through free enterprise so we rather welcome the Work for Yourself programme promised by the Conservatives. It will help move more people into self-employment and create a new generation of small businesses complete with a network of business mentors, access to loans and promotion of self-employment and franchising as a route back into work. This would be good news for the self-employed educator.

4. Access to funding

Businesses need to be able to access credit when they need it and although steps have been made to make this easier the reality is far from the case. The Conservatives plan to create more diverse sources of available credit for SMEs with “a big, bold and simple National Loan Guarantee Scheme”.

They are also likely to keep Labour’s restructuring of banking rules to bring new entrants into the market, which has been widely welcomed. At least five new banks have already either established themselves as business lenders or are in the final stages of setting up.
    

5. Fair competition

“Business needs room to move and a playing field that is level if it is going to compete on the global stage,” says Paul.

Competition is your chance to polish and shine in the best you have but will you be able to do so on a fair playing field? Self-employed educators could benefit from a bigger slice of the government procurement pie with plans to cut administrative requirements so they are easier to bid for.

6. Market opportunities

With both coalition sides placing emphasis on raising educational standards, cutting class sizes, new schools run by parents, funding premiums for taking in troubled pupils, and investment in areas like one to one tuition and extended schools provision, the self-employed educator is unlikely to find a diminishing market here. The Liberal Democrats’ hope to scrap all university fees might free up availability of funds to pay for extra tuition.

Paul adds: “Business also needs a strong education system with competent and enterprising students entering the labour force – less emphasis on benefit and rights and more on responsibility and ownership.”

Self-employed educators willing to invest a little more effort and creativity into thinking and marketing their services will do well.