Is it worth carrying on self employment?

Mudd14

I registered for self employment status at the start of the tax year as I decided that I would start selling web hosting for people. Any way a few months have come and gone and there isnt much interest locally so wondered if it was worth carrying on.

At the moment my costs are more than my income so would be due a tax rebate if carried on. I imagine it would continue like this each year so would HMRC not like this?

I am just wondering if I inform HMRC that I am not self employed and continue doing it as a hobby but not making any money?

Advice would be appreciated.

fengirl_2

If you are making a loss, this can be set against your other income for the year, giving rise to a repayment of tax. Or it can be carried forward, whichever you choose.

If you kept making a loss, year after year, HMRC may well query the situation and make a a ruling that this is a hobby, in which case you would be taken out of the system. Until then, I would carry on.

Horace

It is way too soon to quit self employment as you only started in April. I too started in April and don't expect to see any money or clients until at least September onwards.

I currently get working tax credits and have a National Insurance exemption certificate otherwise my income would be zero. There are lots of expenses when you set up a business, my own has been funded with the help of my credit card but thankfully my debt isnt so great - I have kept all my receipts which will be helpful for my accountant as well as keeping some written books which although basic serve my purposes eell.

I wish you luck with self employment but you need to give yourself at least a year to know whether or not self employment is viable.

cavework

With Horace on this one. You want to be self employed? It's not easy , anyone who says it's because they want to choose their own hours of work is on a no goer from the start.
Self employed means 24/7 seven days a week and if you get to a stage where you are getting no work .. only you can make the difference . It means getting on the phone and creating clients and income. It's very hard work but really rewarding because you are creating your own income and possibly other peoples.
If you are ready to give up after a few months you honestly are not suited to being self employed, the people who make a go of being self employed deserve huge respect.

PlutoinCapricorn

I always thought that you should not register as SE without having work lined up and after having done a lot of research into the market and the competition. It is a big step to take, even if you are doing it as a sideline and have other employment. Either you already have many potential clients in the form of contacts, colleagues, opportunities and leads, or you accept that it can take a year or two to build up your clientele.

It is said that freelancers thrive in a recession, I have found that this is true if you are offering a good service.

shelovestobuystuff

I would stay registered and keep my SE status if I were you.Give it more time.
You say theres not much interest locally but surely with a web based product your possible market isnt just local,it should be worldwide.Do you have a web site and do you use advertising?