The pros and cons of self-employment.
Many of us have jobs. It’s something we have in common. However, exactly what “work” is, can be vastly different from person to person. Of course, there are many sectors of work in today’s world, from retail and hospitality, all the way to tech support, farming, or running a business. The majority of people in the UK follow the same sort of structure though, we go to work, (whether that be to an office, business, or simply your desk at home), we stay there for 8 or so hours, and then we come back home. We get paid at the end of the month, and the cycle continues.
While that is the reality for a huge amount of us in work, there are other ways of working, with the most prominent being self-employed work.
It can seem like a dream to some people, with the idea of “being your own boss” and “working the hours you want to” being a tempting motivator to take that leap. There are some downsides to being self-employed though, and today we’ll be going over these, and how best to prepare, should you be thinking about going self-employed.
Of course, in order to be self-employed in the first place, you need a business or service to provide. If you don’t have that, you won’t have any work to self-employ. There are many different outlets for self-employed work, from tradesmen to website design, even content creation on websites such as YouTube, if you can find the right audience. So, what exactly do you need to keep in mind?
Most importantly, you need to be able to afford to work. At an office, for example, you have all of your equipment, such as your computer and stationery, the building and subsequent bills for it, and even things like tea and coffee facilities paid for by your employer. Not only that, but your employer will also be the one paying your wage. As a self-employed worker, the money you earn from the job or service you provide is your wage. You’ll also have to pay for any equipment that you need to do your job, as well as any travel expenses required to get to wherever you’re working that day.
There are a few options available to help reduce this cost, however. Certain things, such as travel expenses, and even the purchase of some equipment can be filed as a work expense in your tax return. This means you won’t need to pay as much, or even at all for things that considered essential for you to work.
Speaking of tax, you will need to fill in and send off your own tax return each year; therefore, it is important to keep track of your expenses for when that time of the year comes around. It may be worth hiring an accountant or speaking to a professional.
The reality of being self-employed is that you need to be on top of your finances at all times. It can be a difficult thing to get into, and it doesn’t always get easier right away. It’s always a risk to go self-employed, but if you’re looking to take the leap, then why not get in touch with us at Chilvester Financial? Our team of professionals will be able to assist and guide you through the entire process of becoming self-employed. We can help ensure you tick all the boxes required to become self-employed, so get in touch today for your free consultation, and let us give you just the advice you need.