Becoming self employed

[Playing On The Grit]

I've been offered a job which means going self employed for the first time. I'm not sure whether I should accept because I don't like the idea of being responsible for my own tax and NI contributions.

So, to all the self employed NSCers, what advice would you give me to make sure I do everything I need to do to make sure I don't forget anything and cause myself problems?!

 

[severnside gull]

get a good accountant and then go for it - you'll be fine

 

[Uncle Spielberg]

You have to register with the IL or you will get a fine. Put 20% of your earnings aside each month to cover future tax and ni. Get a decent accountant. Good luck. What profession is it ?.

 

[PHCgull]

be careful. Are you responsible for your own health/safety/insurance? If so, it may not be worth it...

Its one of the paradoxes of our form of capitalism that the self employed can potentially be liable to lose EVERYTHING when things go wrong, whereas directors of LIMITED companies usually have their potential liabilities limited to the company.

So a self-employed roofer who screws up could lose his house, while a director of a roofing company will just see the company go out of business...


Having said all that, if youre careful it can be great, plus you dont have to pay tax for AGES and can make up all sorts of excuses to minimise your tax liability...

 

[Playing On The Grit]

You have to register with the IL or you will get a fine. Put 20% of your earnings aside each month to cover future tax and ni. Get a decent accountant. Good luck. What profession is it ?.

Its in sales. I lost my job yesterday so I am tempted to take this job just to keep me going but I'm hoping it turns out to be long term. I'm also hoping that if I am disciplined with saving for the tax etc I won't notice any difference to being employed directly by a company.

I don't like the thought of getting an accountant but realise I must - any recommendations (in the Worthing area preferably)? Do any give free initial advice to start me off?

 

[Playing On The Grit]

be careful. Are you responsible for your own health/safety/insurance? If so, it may not be worth it...

Its one of the paradoxes of our form of capitalism that the self employed can potentially be liable to lose EVERYTHING when things go wrong, whereas directors of LIMITED companies usually have their potential liabilities limited to the company.

So a self-employed roofer who screws up could lose his house, while a director of a roofing company will just see the company go out of business...


Having said all that, if youre careful it can be great, plus you dont have to pay tax for AGES and can make up all sorts of excuses to minimise your tax liability...

I'll be working from home dealing with sales, mostly developing new leads and researching new areas/companies to target. I like the idea of working the hours that suit me and getting out what I put in but I'm the kind of person that never gets the maximum out of a situation like being self employed because I don't think to ask the right questions or play the system. These tax excuses sound interesting...!

 

[PHCgull]

well to start with, if you work from home then you can claim that a proportion of money you spend on heating, light rent, phone etc is "Business" and use that to reduce the amount of taxable income you made. You only get taxed on income minus (allowable) expenses.

The best bet is to network/talk to other s-e people as much as you can - you will hear some great stories about stuff run through the books as an expense...

 

[PHCgull]

lookat the dti and hmrc websites for advice on becoming self employed

 

[Seagull over NZ]

Getting an accountant sounds expensive but you can usually find one that will do your annual tax affiars for £300-£400 and the chances are that they will save you that in tax as they will know what you can claim etc.

 

[Springal]

I use, CSI Services all your accounting needs , Carol is great. Really well priced too

 

[Uncle Spielberg]

Bob Marsh of Marsh & Co in Shoreham is very good.

The upside of being self employed is that if you earn no money you end up paying no tax !.

 

[Del Boy]

be careful. Are you responsible for your own health/safety/insurance? If so, it may not be worth it...

Its one of the paradoxes of our form of capitalism that the self employed can potentially be liable to lose EVERYTHING when things go wrong, whereas directors of LIMITED companies usually have their potential liabilities limited to the company.

So a self-employed roofer who screws up could lose his house, while a director of a roofing company will just see the company go out of business...


Having said all that, if youre careful it can be great, plus you dont have to pay tax for AGES and can make up all sorts of excuses to minimise your tax liability...

public liability insurance

 

[Chicken Runner61]

well to start with, if you work from home then you can claim that a proportion of money you spend on heating, light rent, phone etc is "Business" and use that to reduce the amount of taxable income you made. You only get taxed on income minus (allowable) expenses.

The best bet is to network/talk to other s-e people as much as you can - you will hear some great stories about stuff run through the books as an expense...

Be careful if you allocate part of your home for business use you may find that part of it subject to tax if you sell your home even when the business is closed down