Going self employed

Kevyn_2

Hi there I am currently out of work and thinking of going self employed. I am an electrician and may have a partner to go into business with. I am just looking for some pointers as to how to start up.

Thanks

PlutoinCapricorn

You need to register with HMRC as self employed once you have got some actual work, not just because you want to give it a try.

You need to think about the insurance you will need, and certificates and qualifications required. There is self employment in general to think about, and electrical stuff on top of that: there is a lot to it.

www.businesslink.gov.uk has a lot of free advice, and they have free workshops.

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This might be useful:
http://www.uklocalelectrician.co.uk/electrician-services/starting-my-own-small-business-self-employed-electrician

Kevyn_2

Thanks for that. The qualifications for being an electrician on your own I am familiar with its the tax and insurance issues I am unsure about. Any info appreciated

property.advert

It isn't rocket science but it can be overwhelming. I would look to go Ltd rather than self employed. You can run a Ltd company for £20 a year and book keeping is not difficult if you are organised.

PlutoinCapricorn

Businesslink is definitely the place to start

I am not sure that having a limited company is best for someone who is starting out. There is some learning to do where tax is concerned, but help is available.
Sole Trader versus Ltd. Co. is the first big decision to make.

Sole Trade -v- Limited Company - UK Business Forums - the UK's most active help and advice forum for owners, managers and entrepreneurs of small businesses and startups.

CliffWalker_2

Having been self-employed for most of my working life, here's a few real world pointers;

Are you sure you want to be in a partnership?
In my experience (of other friends in the trades) somewhere down the line, one of the partners may think they are doing more hours then the other, having further to travel, needing more time off, etc, etc. That's when you find out that you aren't the friends you thought you were... (and if you aren't friends to start with, it's an even worse idea)

Have you contacts that can get you work from the word go (local small builders etc.)?
Or are you thinking of ads in local papers, Yellow Pages, etc. (you may have a long wait before the phone rings)

Get some business cards made up (Vistaprint do them 'free' just pay for postage) and take them round as many local businesses you think may give you sub-contract work (kitchen/bathroom companies might be a good one as they never have enough electrical work to employ an electrician on the books but still have to comply with Part 'P', get a few of those on your side and you could have enough work to start with)
(I once did this and had a shortlist of 70 local companies to visit in two days. I had to stop at lunchtime on the first day as most of the firms I visited said they'd use me.. one even asked if I'd got my tools with me as he was in the middle of refitting the showroom as I walked in!)

Accounts; keep receipts from everything. Do the books each month (don't let it pile up and then do the lot when there's three days to go...nightmare, I used to do this and it was always very fraught... stay on top of it and its a doddle.
Get a big accounting book, write stuff you've bought down one column and incoming money on the opposite side, keep receipts for each month together.
DON'T expect to remember what that £40 you paid in last June was for, when its now the end of March (no point paying tax on a £40 payment if it turns out it was a prezzie from Aunt Maud for the kids, not a cash payment for work done - and of course you're going to declare the cash stuff...)

I'm sure you'll get more help from people here, remember, when you're self-employed, the hours can be bad, the pay a bit hit and miss, but the boss is lovely.

PlutoinCapricorn

Cliff Walker has given some great advice. I would like to add that clients should always receive an invoice, so that this can be matched with payments going into the bank account.