People all have different reasons for becoming self-employed, and as long as you’re well prepared there can be many benefits. Some people choose to go self-employed following a big life change, such as after a redundancy; with the current economic climate seeing a reduction in the amount of jobs available, self-employment may be the best option in order to create your own work opportunities. For other people, it may simply be a choice of turning their skills into their own business, rather than opting to work for someone else.
Perhaps the biggest benefit of being self-employed is the flexibility that it gives you. You can work the hours you want on the days you want – if you have children at school, it can be a great way of working around their education while also saving on expensive childcare. This flexibility also extends to your finances; you decide how much you want to charge for your services, rather than your hourly rate being dictated to you by someone else. It also means that you can take time off for holidays whenever you like, or charge a premium for certain services; for example, some self-employed people charge extra if they’re asked to complete work in a short timeframe.
Outsourced accounting and tax services can help
Being self-employed also has some tax benefits; in the tax year 12/13, you’ll get full tax relief on the first £8,105 that you earn. You may also be able reduce your tax liability by claiming some of the costs of running a home office, as well as any purchases that you make which are necessary for the work that you do. Obviously, the things that you can claim relief on will differ depending on your industry – our accountants and tax advisers can help to explain how tax and business accounting works, so do feel free to contact us if you require any help with this.
Filling in your own end of year tax return can seem a bit daunting, especially if you’ve never had to do this before. The good news is that for an affordable fixed fee, we can take care of all of your bookkeeping and tax calculations for you. As accounting professionals, we know all the best ways to reduce your tax liability and will ensure that everything is managed in compliance with HMRC regulations – and of course, our fees will also be classed as a tax deductable expense!
Additional benefits of being self-employed
Being self-employed also affords you the benefit of being your own boss – you don’t have to abide by somebody else’s rules and you get to keep everything that you earn. You decide the best processes and systems for you and you can manage your work commitments around your chosen lifestyle; if you’re an early riser, you can start work at five o’clock in the morning if you like and then have the afternoon to do your own thing, or you can start work later if that’s what you prefer.
Being self-employed also means that you get to manage your own cash-flow. You can take money when you need it or leave it in your business account. You can do anything that you want, as long as your tax liabilities are met.
In addition to our accountancy and tax services, we can help you with everything you need to go self-employed. We can help you with your tax registration, contract and rate negotiations, offer advice on business development and growth and help you to ensure that everything is set up in the best way for you to succeed – we can even offer advice and help with networking. So why not give us a call today and see what we can do to help you realise your self-employment dream?