Thinking of going self-employed?

By Shepherd Partnership – Certified Accountants in Skipton and Settle

If you’re considering going it alone, then this article is for you!

Self-employment has been on the rise for many years – and with the challenges that Covid-19 has thrown at employers and employees, it looks set to increase even further.

So, what do you need to know if you are thinking of going self-employed?

What does it mean?

Being self-employed means that you are the business – and are responsible for its success or failure. Self-employed people are not paid via PAYE and they do not have the same employment rights as employees.

What are the benefits?

Some of the key benefits include:

• Being your own boss!
• There aren’t the same limits to your earning potential.
• Tax saving options become available – which others cannot access.

How do I do it?

First, it is important to plan. Some of the key questions to ask yourself include:

• Do I have a business plan?
• Have I researched the market and the need for the product/service I will offer?
• Where will I obtain new business?
• Do I have the finances to give my business the best chance?
• Do I have good systems in place to manage business administration?
• Have I got a strong brand (website, logo, literature etc.)?

Now, it’s time to register…

If you want to proceed with self-employment, it is a legal requirement to register as self-employed with HMRC. Once registered, you will receive a UTR (Unique Tax Reference) code and login details for the HMRC online portal.

When you are registered as self-employed, you must submit an annual tax return. You will receive a reminder about this at the end of each tax year – and it is important to submit the return, in a timely manner, to avoid penalties.

Should I appoint an accountant?

A good accountant will help with any/all parts of the process – from planning, to registration, and beyond. They will ensure you are compliant – but also confident to run and grow your business.

 

Please get in touch to learn more about our services and how we can help…

https://www.settle.org.uk/listing/shepherd-partnership-ltd/