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Self Employed in the USA VS. United Kingdom

Apr 11 2011

Self Employed in the USA VS. United Kingdom

Self-employed individuals have long been the envy of many who are employed in the private sector. The United States and United Kingdom are two of the countries with the highest rates of successfully-self-employed workers. Eventually these workers may take a job aptitude test and enter the ranks of salaried workers. In recent years, research has been conducted to find out which country has a better success rate among those who are self-employed. The United States came out on top, with its self-employed citizens earning about $13,720 more on average than those in the United Kingdom. Average annual wages of self-employed citizens in the United States are $45,092, while the UK average is $31,372. To put that difference into perspective, it is enough to buy 3,843 Big Mac burgers from McDonald’s.

To earn the same as a salaried worker, self-employed citizens in the United Kingdom must work an average of 146 hours more than a United States self-employed person. That time difference is enough to watch 204 episodes of Glee – or almost any other one-hour television show. In the United States, there are 21,351,320 self-employed people; in the United Kingdom, there are 4,070,059. If these two numbers were put into perspectives of the population of countries, the United States’ self-employed population would be equal to the total number of people in Australia. The United Kingdom’s total number would be equal to the population of Liberia, which is significantly smaller.

The amount of self-employed workers per capita in the United States is also higher than the UK’s. In the United States, 13.8% of the population is self-employed, while 8.96% of the UK’s population is self-employed. The United Kingdom also has a significantly higher tax rate than the United States. Tax rates in the United States are 35%; in the UK, they are 50%. The IRS received $962,791,527 in revenue, which is enough to wrap dollars around the moon’s equator more than nine times.

Being self-employed appears to be more attractive in the United States. Although most self-employed workers can quickly dispel all of the positive misconceptions about not having to take orders from a boss. Nearly everyone is enticed by the idea of being their own boss, but the reality is that taxes are higher for self-employed people, both in the United States and the UK. In addition to higher taxes, the income isn’t always guaranteed. Whether a self-employed person works as an independent contractor or a has a business they run as a separate entity, there are many other financial obligations that must be met before the self-employed individual can actually “pay” themselves with the funds. Starting a business or becoming self-employed takes a lot of research, hard work and diligence. Having a steady job is an asset to anyone and eliminates the worry and stress of wondering where money will come from. Those who feel lost in the job search benefit from taking a career assessment test or job aptitude test. Both of these tests provide helpful suggestions for finding optimal employment, based on personal strengths and weaknesses.