Have you found that you love what you do, but you’re fed up of doing it for someone else? Maybe you have a hobby that you would love to turn into a full-time job? Perhaps you just want to have more flexibility in the hours you work so you can have more quality family time? If you’re in this position and considering your options now could be the time to make the jump from employer to self-employed.
This means you can earn what you want to earn, you can work the hours you choose and you can do what you love, with the best boss ever – you!
However, if you’ve been employed all your life, there are some things that you need to consider when making the job from employed to self-employed. Below we have listed some of the most important considerations when thinking about making the jump.
- Get Saving
One you have decided that you want to go self-employed, you need to start saving. It’s a good idea to save for 6-8 weeks before handing in your notice. You might not be able to start earning money straight away from your self-employed job, and you’ll still have lots of outgoings. Think about the outgoings and how much you need to cover those costs.
- Taxes
When you’re employed your employer manages all your taxes and National Insurance for you. However, when you’re self-employed this is something you need to sort out yourself. They’ll be legal documents you need to complete each year to make sure you pay the right taxes and the right amount. You may want to think about the business set-up too. Will you be a limited company or a sole trader? Maybe you’ll go into business with someone else and it will be a partnership business? Why not book a meeting with our local accountants to discuss taxes and the best business set-up for you?
For more information on Self-Employed tax visit www.gov.uk
- Schedule
While you don’t have set 9am-5pm hours like you would in a ‘real job’, you still need to schedule your time. Set yourself days and times that you will work. If you don’t, you can easily find yourself working all hours of the day and night, and quickly burn out. Schedule the hours you will work. This will help you maintain focus on tasks you need to do and will mean you get that quality family and social time too.
- Space
The great thing about being self-employed is that you can work anywhere you want. However, this can be a bad thing too. If you work from the kitchen table, there are lots of distractions around you and you need to pack up your office at the end of each day. Use a room in your home that is just for work. If the space isn’t available at home, look into co-working spaces.
Going from the corporate world to becoming self-employed is an exciting jump, but it can be overwhelming too. Take the time to plan for the future. Think about how much you need to earn and how long that will take. Don’t be afraid to speak to professionals for their advice and guidance too.
Get in touch with us for more help and advice at enquiries@cedarhouseaccounting.co.uk or head over to our free resources page.
