Going Self Employed
Going self employed may seem like a great way to liberate yourself from everyday working life and all its hassles but there are certain things you need to do before you can set up in work for yourself. Some of these are legally regulated and some are simply useful things for you to do to make sure that you get off on the right track. So, for example, you will need to:
- Inform the Inland Revenue of your self-employed status so that you can make arrangements to pay National Insurance. You will also need to fill out a self assessment tax return every financial year.
- Register for VAT is you are likely to earn over a specific threshold in your business. It can also be beneficial for some people to register for VAT voluntarily even if they will not earn to the threshold so it is worth while taking advice on this option.
- Think about getting an accountant to help you manage your tax returns and finances in general. This can save you a lot of time and effort and can make sure that you get the best tax benefits possible. It may also be beneficial if you are employing staff in your business as you will have PAYE responsibilities.
- Assess whether you want to set up as a limited company rather than simply freelancing in which case you will need to register your company and its name.
- Make sure that you have a business plan in place to keep on track in your early days.
- Ensure that you have sufficient funds to cover your expenses/salary in the early days of your self employment before you start bringing money in.
- Check with your mortgage provider and insurance company if you will be working from home that they are OK with this.
The benefits of going self employed can be great both from a financial and quality of life perspective. Do make sure, however, that you get things right here to make the most of your opportunity.