Going Self employed

Stubod

Hi all,

Recently made redundant after 30 years regular employment.
Had enough of "signing on" after a few weeks and decided to go "self employed. An ex-colleague has offered me some part time, short term work.....how long can you work as a "self employed" person working for the same Company? (I will be looking for other work, but not while I can can get "regular / consistent work....also what to do about tax etc?...a I have never done this sort of thing before...

Any advise welcome...thanks

dmliverpool

the thing is you are the boss so its up to you. I would say doing one job for someone else makes it look better but there is no obligation for you to work a limited period with anyone. The issue is if you are constantly working for the same contractor as that's what they are over say 1 year why didn't they just employ you? You get less benefits being self employed whilst working on the same type of work with the same contractor. This is unless you have a contracu that lasts a while.

Hammyman

As above.

In regards to tax, you have to register as self employed, pay Class 2 NIC (£30 give or take a few pence every 3 months) and complete a self assessment where you will pay Class 4 NI and income tax depending on how much profit you make.

You will need to keep a record of income and expenses - a basic set of books. I would advise putting aside 30% of every invoice you get to cover tax and NI and give you an income when there is no work. In my first year I worked out the bare minimum I needed to pay myself a week to meet the bills and just paid myself that. It allowed me to cover the 3 months without work in my first year.