Thinking of going self emloyed - advice needed

Cam93

Socajam said:

Adding to all that listed above, are you going to have an emergency fund and life happens fund to cover any problems that  crop up?

Yes, currently have 1 years salary in accessable accounts 

I would continue too add to these even when SE

Cam93

tacpot12 said:

Just doing labour-only subbing will take a fair bit of pressure off, but being self-employed carries extra responsibilities and there is less protection for self-employed people if their industry is hit by some mishap. 
You need to make sure you that you are factoring in all the extra costs you will have as a self-employed person, e.g. holiday pay, sick pay, life insurance, tools insurance, liability insurance, pension. 

I would try to find a good commercial insurance broker and ask for some advise on what liability insurance you can buy to protect you if something bad happens on site that turns out to be your fault. e.g. if you kill someone or something you work on fails and causes damage.

Yes - ive already sat down and worked out the numbers allowing for holiday, pennsion etc.

I have based a lower day rate of X (I expect i would be able to increase my day rate but have assumed the lower end for this purpose) and then based this rate on 46 weeks per year (allowing 20 days holiday PA plus 8 days bank Holidays) I've then deducted what would be company pension contributions from the remaining money and it still works out either equal or better off financially to be SE.

As my posts below I have approx 1 year salary as emergency fund, I have several potential contacts where I coukd work labour only.

My questions where aimed more fir advise from people who have taken the plunge and are able to offer any advice or things they wish they knew before hand etc.

Also any information regarding pension - can I transfer my current company pension into a SIPP and then pay myself into this SIPP?

Cam93

Petriix said:

If you bought an EV van then it would qualify for a special rate of tax relief so you could offset the full cost. There is also a significant investment allowance available for you to purchase equipment and offset the entire cost.

You should do some research and draw up a business plan to see how viable it would be. See if you can speak to a business advisor and an accountant to get the plan a bit clearer. 

Excuse my ignorabce but what us an EV van? Electric vehicle?

Domzy

I went self employed about 3 years back, unfortunately I have found myself busier than ever. It great to be your own boss, however there are a lot of responsibilities. Move forward carefully. 

Petriix

Cam93 said:

Petriix said:

If you bought an EV van then it would qualify for a special rate of tax relief so you could offset the full cost. There is also a significant investment allowance available for you to purchase equipment and offset the entire cost.

You should do some research and draw up a business plan to see how viable it would be. See if you can speak to a business advisor and an accountant to get the plan a bit clearer. 

Excuse my ignorabce but what us an EV van? Electric vehicle?

Yes EV = Electric Vehicle. They are heavily incentivised for business purchase at the moment so, unlike any other business vehicle, you can write down (deduct from your profits before calculating your tax) the entire cost of a new EV in a single year.

Dox

Cam93 said:

tacpot12 said:

Just doing labour-only subbing will take a fair bit of pressure off, but being self-employed carries extra responsibilities and there is less protection for self-employed people if their industry is hit by some mishap. 
You need to make sure you that you are factoring in all the extra costs you will have as a self-employed person, e.g. holiday pay, sick pay, life insurance, tools insurance, liability insurance, pension. 

I would try to find a good commercial insurance broker and ask for some advise on what liability insurance you can buy to protect you if something bad happens on site that turns out to be your fault. e.g. if you kill someone or something you work on fails and causes damage.

Also any information regarding pension - can I transfer my current company pension into a SIPP and then pay myself into this SIPP?

Yes, but may not be in your interests to do so. Assuming it's a defined contribution scheme (almost certain to be), check the costs you are paying in the company scheme with the costs associated with your intended SIPP. Also worth reading before you do so: https://www.thisismoney.co.uk/money/pensions/article-3550085/STEVE-WEBB-merge-small-pension-pots.html

Yes, you can pay in to your new SIPP with the usual personal tax relief.