Welcome To The Self-Employed World

Sick of your boring nine to five job? Think you could show your boss a thing or two if you were in his shoes? 

Well, if that’s the case, why don’t you just pack it all in and become self-employed. 

That’s not as stupid as it may sound at first - in fact, in this day and age, more and more people are quitting the world of full-time work and starting out on their own. And, thanks to the developing world of technology and the Internet, there are now more and more jobs that are perfect for people to do while self-employed. Even if you have never considered this career change before, you might be pleasantly surprised that your current set of skills and experience set you up perfectly for freelance work. 

So, ready to take the plunge? Here are some things that you need to do in order to set yourself up as your own boss!

Decide What Kind Of Self-Employed You Should Be 

First of all, you will need to let your authorities know that your work status is changing as this will affect how you pay tax. You need to tell them that you are no longer going to be in full-time employment and that you will be registering as self-employed. But before you do sign up as self-employed, you need to decide which is the best business model for you: sole trader or a limited company? Each has its own advantages and disadvantages. For instance, the advantages of running a Limited company include some tax incentives as you can pay yourself in tax-free dividends. However, that does mean that there will be more paperwork for you and your accountant! But it can also help you look a lot more professional, as you will be working behind a registered business name.

Get A Business Bank Account 

If you set up as a limited company, you will be legally obliged to open a business bank account for your company. Even though it's not necessary, it is still recommended that you also do this even if you want to be a sole trader. That’s just because it helps you keep your business money separate from your personal finances. It will also create a nice little pot of cash that you can dip in and out of whenever you need to pay any business expenses.

Make Sure You Can Work From Home 

For the majority of people, this shouldn’t be a problem, but it’s always best to check. After all, better safe than sorry! There are some clauses in mortgages and rental agreements that don’t allow a home to be used as a professional space. So, you won’t be able to work from home as a limited company or a sole trader. Of course, you might be fine with this, especially if you were already thinking about looking for a co-working space to hire a hot desk from.

Get A Private Pension 

Now that you are no longer in full-time employment, you won’t be eligible for an employer’s pension scheme. It’s super important that you now set up your own private pension to ensure that you will have enough cash to live off once you retire. You should be able to easily do this by speaking to a financial advisor. They will be able to advise you as to which scheme is the best for you, and how much you should be paying into it each month. If you previously had a workplace pension, you should be able to transfer this to your new private one. 

Get All The Right Insurance 

It’s super important that you have plenty of insurance to protect yourself now that you no longer have the support of an employer behind you. You need two types to start off with: public liability insurance and professional indemnity insurance. These will protect you from any claims against you or your business.

Get An Accountant 

Even if you think you will be able to keep track of your accounts, bookkeeping, and taxes yourself, it is a good idea to get yourself an accountant. Your accountant can help you get your business set up, and they will know lots of loopholes to help you reduce your tax bills. Some of these tips and tricks might not be so obvious to you if you try and do your taxes on your own! 

Self-Employment Success

Going self-employed is easy. And now that you know all of the above steps, it will be even more of a breeze!

I hope you enjoyed this article about becoming an sole proprietor and joining the ranks of entrepreneurs & small businesses worldwide.

Interested in more articles about starting a business?

Read My Posts:

- How To Make Millions With Your Own Business 

- 7 Steps To Start Your DIY Home Business

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