Going self employed - pros, cons, pitfalls.....

Thinking about going self employed a lot recently, and was wondering as I know a fair few of you are already, what the deal is with it?

A few things I was wondering about

How did you start out/get going?
How do you sort the tax bit out and how do you decide how much to declare?
How does the vat back thing work?
What do you do about sickness/injury?
How does it affect tax credits etc?
How do you discipline yourself for putting tax aside?

Work has been quite thin on the ground recently and I've been helping a mate out who has since told me he has a fair bit on, although he quite often gets his brother to help out. I'm employed but the boss has said if needs must I can work for my mate on the odd day. I have a feeling I could make more money by spreading myself thinner between a number of employers rather than one with occasional big paying jobs, although I am slightly nervous of losing the perks of being employed - i.e. a constant wage each month(albeit crap basic wage, with decent bonus for site work, although I've only got the basic the last couple of months and probably next month too), holidays, sick pay etc. I guess that is the eternal toss up though!

All thoughts welcome!

P.s. TGR don't mention this to Paul just yet!

If the work you intend to do is simpleand not a business that is employing people.......then it's very easy to be self employed..........just keep records and receipts...........just make sure you pay the correct type of NI contributions towards your state pension.

I am currently self-unemployed

Just dont be ill or take holidays.

As for VAT unless you turnover more than £80k+ annually you dont need top worry.

Find a really good accountant. Not only is it easier and safer than ploughing through the paperwork yourself, but they'll probably be aware of a few legally-sound breaks.

You need to be a sales man all the time,
There are no holidays and no time off.
The tax office run free courses on what you need to do, (you should be able to walk to these)

You need to work out what to do when there is no work

Working out what to charge, it's probably more than you think.

If you are leaving a job, make sure it's classed as redundancy, there is a tax advantage to this.

Meet me for coffee towards the end of the week, and we can talk it over.

legrandefromage":x5trk3c4 said:

As for VAT unless you turnover more than £80k+ annually you dont need top worry.

Click to expand...

My turnover is way less than that, but I'm VAT-registered and better off as a result. The flat-rate VAT scheme is a marvellous thing

(Disclaimer: depends a bit on nature of business).

What is your profession?

Have you considered setting up a limited company rather than being self employed?

Dan

On average self employed folk work a third longer than the rest of us and earn a third less.

Build a business and get others to work for you