Going Self Employed

The great thing in the UK is that it's easy to say you are going self employed and to work for yourself and in reality that's all there is to it... at the beginning.

The main element you need to be aware of is that you must notify HMRC within three months of you earning non PAYE income otherwise they will fine you and continue to fine you until you do.

Being Self Employed

Other than notifying the tax authorities you are free to set up your business as you see fit. You'll of course need to declare any income and expenses each year on your personal tax return so you can be assessed for tax but other than that you can run your business as you see fit.

The main reason people are being self employed these days is because they want to escape the 9-5 rat race and be their own boss. Unfortunately in the current climate many people see no other option than to run their own business but this is a great opportunity for many budding entrepreneurs.

Setting Yourself Up as Self Employed

Many people set themselves up as sole traders but there may be tax advantages of operating under a limited company scenrio. You can et up a limited company at companies house direct which is a pain free method of getting a company online.

Once you have a company you'll need to separate your personal and business income and expenditure by opening a business bank account. You don't need to be with the traditional banks and some of the new entrants offer free banking for life. You can get a bank account using a free business banking accounts which you can apply online and therefore pay no fees for traditional banking expenditure.

If you believe that you will have savings or income in your business then it's wise to check out the different business savings accounts because otherwise most banks will only pay 0.10% interest on credit balances. You can get good interest on savings with the best business savings accounts which are easy to open and ensure you at least receive some credit for your hard work.

One thing to keep in mind is the various insurances you may require if you deal with members of the public, visit client premises or eventually employ staff. Get insured with either or both professional indemnity insurance and/ or public liability insurance so in the event you are taken to court for mistakes made in your business your insurance will cover you for all costs.

If you are thinking of becoming a self employed courier you'll need some courier van insurance cover and we have put this here because many people start up as couriers.

Other Things to Consider

So long as you have a sustainable business plan and good marketing skills there is no reason why you should not be successful. There are plenty of areas of online help that provide free advice to help with you going self employed and certainly friends and family can be a great help and source of motivation.

Many people actually start their new business whilst they are still employed at their PAYE place of employment by working on business and marketing plans in the evenings and weekends and perhaps taking on some projects to get the initial business idea running and a small steady stream of customers on their books. It's hard work but the rewards are worth it.

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