Self-employment income increases by 8% as UK entrepreneurialism defies challenges

Ecospend, the leading payments platform in the UK recently acquired by Trustly, has analysed figures released today by HMRC which show that self-employment income assessable to tax increased by 8% in 2020/21 proving UK entrepreneurialism to have remained robust in the face of the coronavirus pandemic.

Ecospend explains that in 2020/21, there was £108bn self-employment income assessable to tax, compared to £99.9bn in 2019/20 and surpassing the £102bn assessable in 2017/18. The payments platform explains that today’s increase demonstrates the strength of entrepreneurialism in the UK, through what has been a challenging period for business.

Amount (£m)

Number of sources (thousands) 

Ecospend says that whilst the numbers are a positive sign, boding well for ongoing economic recovery, they also highlight the importance to continue to foster an environment in which small businesses and start-ups can thrive.

To ensure long-term growth, Ecospend says that it is essential that the infrastructure supporting these areas is optimised, increasing the efficiency and simplicity with which small businesses can operate.

In February, the government announced that 100,000 British small businesses benefited from its start-up loan scheme however, the development of technology, such as, for example, open banking technology, can also play a major role in enhancing this infrastructure, removing inefficiencies in processes and allowing businesses to focus their attention on development and growth.

James Hickman, CCO of Ecospend, comments: “Today’s numbers pay tribute to the strength of entrepreneurialism in the UK – especially when accounting for the difficulties of the last few years. The UK is known for its innovation, and we pride ourselves on the business-friendly infrastructure we have created that makes it possible for start-up businesses to thrive here.

“A lot has changed since before the pandemic and nowhere more so than in the technology space. There are now new and innovative ways that smaller businesses can create even greater efficiencies and it’s important that they are supported in accessing these tools – especially now as recovery remains ongoing.

“Open banking technology is one example – facilitating account-to-account payments that are both cost-efficient, simpler, and put both businesses and their customers at less risk of fraud.

“As we continue to navigate uncertainty in the markets, smaller businesses can benefit from these sorts of developments.

“Small, incremental changes can have a big impact and cumulatively create an environment where it is easy not only to set up a business but for fledgling businesses to develop and grow, despite wider challenges.

“In February this year, Ecospend came together with Trustly to form the leading open banking payments company in the UK, featuring connectivity with over 80 banks and a consumer reach of approximately 50 million consumers. As the UK works towards recovery, we are committed to supporting businesses with our sustainable payments solution that is second to none in terms of connectivity, speed, efficiency and safety.”