Self Employed?

saitek

What do I need to do to leave my current full time position and become self employed?

My profession is an IT technician, so will be visiting small companies and managing their IT needs. Also remote working, including website and database design.

Thanks in advance...

scooby088

register as self employed with HMRC.

saitek

Is it that simple?

Anything else I should be aware of before taking the plunge? :eek:

paulwf

OP it's worth keeping an eye on the "small biz & charity board" and posting on there for any specifics, it seems to be that it is very hard to make money out of IT...not impossible of course just not easy.

This thread is long but worth reading in full...http://forums.moneysavingexpert.com/showthread.html?t=701077&highlight=computer+repair+business More orientated at the home PC market but please read it.

Becoming self employed is just a call to HMRC and then they will arrange a class II national insurance contribution by direct debit. HOWEVER...and I can't stress this enough...you could potentially be getting into a mess with your books and losing out on a lot of profit if you don't do a lot of research into your business setup.

For example you really should have a separate bank account for your business so it is easier to track income and expenses, and this will also keep HMRC on your side. There is also things like if all your customers are businesses you might benefit from being voluntarily registered for VAT.

I could go on and on but to spare you the boredom a good place to start is the Business Link (or national equivalent) website that clearly explains everything. Next call them up if you have any specific questions and book their startup courses which are free and available in most areas at a range of times to suit.

Before you take the plunge also bear in mind that being employed provides a huge safety net that you won't get being self employed. There isn't any sick pay, holiday pay, no guaranteed income not even minimum wage or anything else an employee would take to be a basic right. No one in their right mind would give up these benefits without a serious amount of thought.

saitek

paulwf - thanks for your reply

The work I currently do is kind of IT consultancy. I have been contacted by a few of my current customers suggesting they deal direct with me (as I do all the work for them at the moment anyway). Up until now I have put this off.

I am currently on lower hours due to being unwell, but I am well enough to do the work from home. My current employer is against this idea.

I am seeing this as maybe the catalyst to make the change I have been considering for years.

I can pretty much guarantee the same earnings as my previous "full time" salary by working a minimum of 2 days a week, giving me time to either recover in my current state, or give me the oppurtunity to earn more (and save) than I did previously.

At the moment, I can see self employed as a win/win situation as I am only being paid for the hours I work anyway.

It still is a big decision to make! :eek:

Funkyfarmgirl

Wot if your illness is prolonged or gets worse do u have any private accident/ sicknessi policys to cover you if your too ill to work and therefor no imcome.

saitek

I dont - I wish I had have taken it out, but it's too late to do it now

The good thing is that I can still carry on and do most of my work anyway from home in the hours that I can handle.

anamenottaken

And what will your current employer think (and, more important, do) about your taking clients away from him?

You wil need professional indemnity insurance. (I'm sure that will be covered in the links you have been given.)

saitek

anamenottaken - that is my predicament.

I will potentially offer my services back to the company on a self-employed basis rather than take them away from him.

I am in a very unhappy spot with this all - which is the reason I have asked other people's advice - it's against my better nature to do it, but it seems it may be the way to go.

anamenottaken

saitek wrote: »

anamenottaken - that is my predicament.

I will potentially offer my services back to the company on a self-employed basis rather than take them away from him.

I am in a very unhappy spot with this all - which is the reason I have asked other people's advice - it's against my better nature to do it, but it seems it may be the way to go.

Right. It sounds as though the company you are currently a PAYE worker with will be your only client. That's one reason for thinking it may be difficult to prove you are actually self-employed. The change of status is not simply one of your agreeing with your employer that you are self-employed, you would need to be able to persuade HMRC that you were too. Take a look here - http://www.direct.gov.uk/en/moneytaxandbenefits/taxes/workingandpayingtax/dg_4015975

saitek

I have other potential clients that are not "current" clients - so my current employer won't be my only customer.