For the first time in my life I find myself in a position where I have to take more control of my career.
This means that instead of being salaried and tied to one practice, I am going to be working for two employers.
It has been suggested to me that I should become self-employed.
This seems massively scary to me... can anyone give me any hints/tips/pitfalls to avoid.
many thanks
MM

What might suit one person might not suit another - I'd suggest seeing an accountant for proper advice in relation to your personal circumstances.  Past: FL2 TD4 HSE Auto
Evoque SD4 Dynamic Lux Auto
Present: Audi A3 S Line.

Dead easy! Just set yourself up as a Ltd company. I dd it a few years ago after working for 26 yers for one employer. Best thing I ever did!

I was self employed a few years back and ended up going back to work for someone else because it didn't suit me.
It had a lot of advantages but a few disadvantages.
The hardest parts I found was too keep motivated in the lean months and I was spending more time marketing myself to prospective clients and chasing existing clients for payment that I was actually doing paid work.
The marketing and accounting side can be a bitch.
Also I don't know what the laws are like in the UK but here you need to have at least Public Liability Insurance which seems to double in the premium every year, yet you would might never have to make a claim.
I not trying to put a downer on this. I'm just trying to say that being your own boss 90% of the time it's great, but there are a few harsh realities that you will come up against.
Like Steve D said "it might suit one person and not another and see an accountant for proper advice"
Cheers

Yes, you should see and accountant for proper advice.
You do need insurance, but there are various specialist insurance companies. My insurance is higher because I work for a company in the USA but it has never increased in 4 years and is not prohibitive.
The Professional Contractors Groups http://www.pcg.org.uk/ is well worth joining and http://www.contractoruk.com/ has lots of advice and calculators for working out whether you would be better off as a Ltd company.
I am not sure what king of business you are in, but if you have any specific questions please PM me.

What business are you in? Past: FL2 TD4 HSE Auto
Evoque SD4 Dynamic Lux Auto
Present: Audi A3 S Line.

Think about holidays too, don't get paid whilst your away sunning yourself and whilst your away the clients are having to find someone else to do the work, will you get their custom back  Former Mod/Member, with the most post & Chicken George Arch nemesis

You also should consider pension needs and enough insurance protection to pay the bills following accident/illness. At work
At home

"I can't always believe facts I read on the web" - Charles Dickens

winner by default of the tractor vs caravan race

I was self employed for 20 years, the rewards can be fantastic, but you work extremely hard.
Chasing payments is almost a full time job in its self !
Holidays were great as I always treated myself to a month or 6 weeks in the summer.
Insurance can be a few grand but so can the rewards
I now work for a company so when I go home I switch off which is great
But company policy is no more than 2weeks holiday at any one time !

Sickness insurance is a must ! I had 18 months off after a serious road accident and I was so glad I had income protection although it wasn't easy getting them to start the payments , that was another story
Good luck.

If memory serves, you're a vet?

I think everyone has given good advice. Makes sense to be self employed if you are working for two separate companies.

Sounds like you know these people, so hopefully they will pay you, and on time. But don't mess with money and don't be afraid to pipe up when any payment is late.

I've only had a couple of non payments totaling ~£13k. You soon learn when to stop putting good money after bad chasing it up.

Booking time off is the hard part. Just make sure you book any holidays well in advance, and hopefully they don't need your assistance in the time you are away or perhaps source your own cover.

23+ years self employed here and there is nothing to worry about

Last edited by AiiEEX on 21st Jun 2013 12:59 pm. Edited 1 time in total

Dont let your account drop below £100,000 best advice I was given, nice to have a few quid in reserve.

Lots of good advice so far, he's my checklist:
- get professional indemnity insurance
- consider critical illness cover and adequate life insurance, especially if previous employment provided 'death in service' payout to your next of kin
- accountant to advise on allowable expenses and work out right tax
- pay your taxes promptly and in full to stay of HMRC radar
- make sure you work for more than one client (so that IR35 does not apply)
- consider starting off as a sole trader or Ltd company now/later (accountant to advise)
- VAT registration can work for you even if turnover doesn't make it necessary; can also add credibility to your enterprise (look into cash accounting for payments, on revenue income not invoicing, and "flat rate" for your "trade" to minimise micro-management)
- you'll get used to paying for holiday while not charging for time (odd at first), working fees have to cover this and marketing yourself so don't go in too cheap just to get work
- feast follows famine and famine follows feast; fact of life, don't get too stressed
- enjoy good jobs while they last; don't worry about not-so-good jobs, they don't last either! Gone... 2013 XS TD4 Manual Firenze Red
Gone... 2008 (09MY) XS Td4 Manual Stornaway Grey
Prior... 2003 G4 Discovery 2, 1998 Disco 1 and 1997 Disco 1 Company car before that
Also gone in Nov'13, after 7.5 yrs, to new owners with time for more TLC - 1980 Series III 88
Current 2015 Discovery Sport HSE 2.0

Mona Geeza wrote:

Dont let your overdraft drop below £400,000 best advice I was given,

 At work
At home

"I can't always believe facts I read on the web" - Charles Dickens

winner by default of the tractor vs caravan race

It also depends on the nature of the business. My son set up on his own 2 years ago and its the best thing he ever did and really is on his way to his first £million within the next year or two. Has a fantastic accountant and very low overheads business but took 12 months before the cash started flowing. I tried it in the 90's and nearly lost my house (took me years to recover) so went back to an employee as the least worst option. However I have just set up another business with my son with the aim of telling my employer where to stick his job within 2 years max. eh tu?

It's the best thing I ever did but sometimes, the worst thing I ever did.

You will spend more time on your business than you ever did as an employee.
Depending on your business type you have to be 'on call and available' 24/7, even if it just to take/make calls and emails etc.
You will worry when the phone doesn't ring then curse when you are miles too busy.

And chasing unpaid invoices is a NIGHTMARE. You get to the point where you lose a client because you have to demand they pay, or even get legal.

BUT, I wouldn;t go back to being employed if I could help it!