5 Important Things To Think About When Working For Yourself

As I’ve blogged about before, my ultimate career goal is to work for myself. It hasn’t happened yet, and probably won’t for a while, though I do quite a lot of freelance work now so am on my way!

There’s a lot to think about before you take the plunge. There are pros and cons, and obviously you have to decide what kind of work you’re going to do.

But there are also some quite important things you may not have thought about…

5 Important Things To Think About When Working For Yourself | www.digitalmotherhood.com

Set yourself up with a Dedicated work space

Having a dedicated work space is important as it helps you to concentrate on your work without distractions of household chores or daytime TV.

However, another important aspect is that if you have an area of your home that is just used for work, you’ll be able to claim back a portion of your household bills as business running costs – for example gas, electricity, telephone and broadband.

It may be worth looking at a mains gas supplier who look after businesses, to see if they can do you a better deal than your usual home gas supplier.

Gov.uk have lots of handy advice on their website if you are setting yourself up as self-employed.

Take Out Insurance

Depending on the type of business you’re running, you may need to take out business insurance.

If you have stock you may want to take out extra insurance to cover it, or check if it can be covered under your current home insurance.

If your business involves giving professional advice to clients you may want to consider taking out Professional Indemnity Insurance. This will cover you for any claims made by dissatisfied clients.

If you’re going to have clients visiting you at home, then you may need Public Liability Insurance. This covers you if someone harms themselves on your premises – e.g. tripping over your doorstep.

Keep All Financial Records

When you run your own business you need to make sure that you’re on top of your accounts. Keep all paperwork, invoices and receipts – this will help you if you have to submit a VAT return or self-assessment.

If it becomes too time consuming you may want to consider hiring an accountant.

Pay your tax

When you’re self-employed it’s up to you to pay income tax  and national insurance contributions on your earnings. You will need to register with HMRC first, and they’ll let you know when you need to file your self-assessment tax return.

You may be confident in doing this yourself, or you may want an accountant to file the returns for you.

Register for VAT

Your business only needs to be VAT registered when you have an annual turn-over of £83,000 or more, so if you are just doing some freelance work here and there it’s probably not something you need to worry about.

However, if you are doing business on a larger scale then you’ll need to contact HMRC.

 

If you’ve been thinking about working for yourself, I hope these pointers have helped. Good luck!

Sarah

*This blog post contains a sponsored link, but all ideas and views are my own.

If you liked this post, why not subscribe to have future blog posts, tips, advice and competitions from Digital Motherhood emailed to you:


Keep Calm and Carry On Linking Sunday

10 thoughts on “5 Important Things To Think About When Working For Yourself

  1. Kat says:

    Some really great and helpful tips here for anyone looking to work from home. Thanks so much for sharing at #KCACOLS hope to see you back next time.

  2. Angela Watling says:

    I don’t envisage I’ll ever work for myself (no idea what to do!) but there are things you mentioned here I wouldn’t have even thought of. Especially the utilities tip. Great advice for those thinking about striking out on their own! #KCACOLS

  3. Sonia says:

    I’ve been self-employed for a while now and so generally work from home. These are some great tips for getting started that some people may over-look. #KCACOLS

Comments are closed.