Being self employed has many benefits as I have said before. There are now 4.6 million self-employed workers, according to the Office for National Statistics. The number has risen steadily since 2000, when the figure was just 3.2 million. However when embarking on this type of flexible working there are also many other things to take into account. The budget this week has increased national insurance contributions for self employed workers and this has a direct impact on your pocket when self employed.
I was recently just talking about this as my dad is also self employed and now off sick as he waits for a major operation. Yet initially there was much confusion over whether he was entitled to statutory sick pay. I started to consider the hidden responsibilities of being self employed.
- Completing your tax return. We are nearly at the end of the tax year and for self employed people this means they need to submit their income and expenses. I use an accountant for this to ensure it is done correctly as I don’t feel confident doing it myself. I also recognise that an accountant is a specialist and knows exactly what I can claim for.
- Health and safety is also your responsibility. Working from home has the advantage of low costs but make sure your environment is fit for purpose and if you reckon your business might need proper training you could contact someone like SHEilds, international NEBOSH training experts, to give you a hand.
- Providing for your future. I do miss the security of my occupational pension. As a teacher I had a great pension scheme which I am no longer paying into. I have been looking at my pension options which you can read about in this post Have you got more than one pension or none at all?
- Insurance. As a small business providing a professional service you need to protect yourself against a claim of negligence. From allegations of a breach of copyright to accusations of defamation, these kinds of claims can be costly and disruptive regardless of whether they’re fair or not.
- Trademarks can cost money and you need to consider whether you wish to use a trading name for the business. There are restrictions on the names businesses can use. What you don’t want is someone to start trading with a similar name in the future.
- You need to do your own PR when you have a small business. Whether you are selling a product or like me if you are blogging, you are selling yourself. It takes up time to grow your brand on social media. You will need to use Twitter and other channels promote yourself.
Therefore whilst being self employed is wonderfully for the freedom and flexibility it gives you do need to be prepared for the Hidden Responsibilities of Being Self Employed. Can you think of anything I have missed?
One Response
A very good post. You also need to take into consideration that you wont get holiday pay (which I guess is self-explanatory) – so it is something you need to factor in if you want/need to take any time off.