As regular readers of this column will know, I pride myself in keeping you up to date with the latest business trends, good or bad, whilst also being able to impart with some knowledge or advice that I’ve picked up throughout my career to help with your own business endeavors.
When I started my journey as an entrepreneur, being a ‘hustler’ was widely considered as a negative characteristic for a burgeoning businessperson.
Nowadays, however, with side hustle culture, the art of wheeling and dealing at a relatively low and small-time level is commonplace and, in my humble opinion, something to be applauded.
I am always keen to doff my commercial cap to those willing to put themselves out there on the multiverse of web platforms, selling their goods, whether that’s hand-crafted and artisanal or recycled and second hand.
Indeed, I often field questions from budding sellers looking for advice on how to navigate this 21st century landscape of hustling.
That’s why last week I was a little peeved at the news that HMRC have introduced a so-called ‘side hustle tax’ for those making use of platforms such as eBay, Etsy, Depop and Vinted to generate a secondary income.
Before I get into the minutiae of it, there’s nothing like picking on the little guy to stifle healthy business, which lord only knows this country needs right now.
We all must start somewhere and penny pinching from those simply trying to make a few extra quid has, unsurprisingly, been widely greeted as a poor policy.
Rather than working closely with huge multinationals based in the UK who will have to assist in enforcing this tax by passing on seller information to the taxman, what the government, in my opinion, should be doing is shaking the fat cats’ pockets first.
I know what you’re thinking, I’m not usually one to bang the drum for increasing tax on business, but corporate megaliths such as Airbnb and Amazon can well afford to pick up the slack as the country continues to try to get back on its feet after Covid and the cost-of-living crisis.
As we trundle into 2024, the latter is still a very real problem, and discouraging those further down the business food chain from entering into the commerce sphere can only hold people back.
As I understand it, in partnership with the Organisation for Economic Cooperation and Development (OECD), the UK government’s latest policy is designed to clamp down on tax dodgers.
While this is a sentiment I can get behind, I think hoovering up the millions of pounds of corporation tax would help shrink our economic black hole far quicker than recouping the buttons Joe Punter is making off selling a second-hand jacket for £10.
And it wouldn’t take many transactions for this type of seller to start feeling the effects of this new tax.
The threshold for earnings from online side hustles is set at over £1,000 a year – above this, online sellers must register as self-employed and file a self-assessment tax return at the end of the financial year. For me, that’s an awfully low bar and a worrying trend for the future of taxation in Britain.
We will see the full results of this policy around this time next year, but, if I know anything about business, those who want to sell without incurring the wrath of the taxman will find a way.
The UK government will continue to argue that they are creating a level playing field for taxpayers with policies such as this, but anyone with a shred of common sense and morality knows that something even close to equality will only come when the big boys are the ones in the firing line.
In the meantime, I’ll get off my soapbox, keep answering your queries and would like to urge anyone reading this column to not be deterred by this the latest Westminster edict and keep on hustling.
Aldi rings in the New Year with record growth
Us Scots can be canny with our cash and in the wake of a cost-of-living crisis and rising food prices, Aldi and Lidl have certainly been the winners as we looked to make our money go further over the festive season, with the discount retailers reporting record-breaking Christmas sales.
Aldi, with more than 105 stores across Scotland, celebrated its ‘best ever’ Christmas performance, generating UK sales exceeding £1.5 billion in the month leading up to the 25th – a remarkable eight per cent year-on-year increase.
Despite a slowdown in sales growth compared to the previous year, Aldi and Lidl’s performance during the challenging economic climate has been commendable as the budget retailers continued to attract Scots seeking affordable options.
Aldi’s success is further underscored by its strategic plans for the future and that’s why I’m celebrating. The supermarket giant is set to invest £56 million in Scotland over the next two years, not just solidifying its position as a major player in the Scottish grocery market, but it’s great news for local communities around the country.
The investment includes the opening of new stores in Broughty Ferry, Straiton, and Castle Douglas in 2024, bringing with it much needed employment opportunities.
Aldi’s strategic investments and commitment to affordability position the retailer favourably, not just for its continued success in the competitive grocery market, but for its positive impact on the Scottish economy and job market.
Amidst the ongoing economic challenges, this should be applauded and it’s a great way to kick off January with some positive retail news.
It Made Me Laugh
I’m a big proponent of business diversification and always keen to bang the drum when a Scottish business does it well.
The advantages of diversifying your products or services are well documented – it helps manage risk, enhances growth opportunities, and allows you to adapt to the ever-changing market conditions.
I was particularly impressed to see Scottish butchers, Simon Howie, think outside the box and make a move into sweet treats, with the launch of their chocolate haggis.
The world’s first chocolate version of our national dish has been created just in time for Burns’ Night, ensuring you can potentially enjoy a version of haggis for every course.
Whether the butcher will continue the product line after Burns’ remains to be seen, but it certainly tickled my taste buds.
It Made Me Weep
As with every January, many Scots will have getting fit at the top of their New Year’s resolution.
Walking is a fantastic way to burn those festive calories and the more adventurous amongst us will no doubt look to head into the hills to enjoy our world class scenery, whilst getting the miles in.
However, Scotland’s mountain rescuers have issued a warning after a series of winter incidents on Scotland’s hills, with December seeing more call-outs than previous years.
It’s a timely reminder that even the most experienced walkers amongst us can quickly get into trouble.
So, whatever your level, treat the great outdoors and the weather conditions with the respect it deserves to stay safe out there.
